Global Procurement and Supply Chain Management Excellence workshop and Conference 2021May 14, 2021 - GB
A New Reality for Oil and Gas Procurement and Supply Chains For EPC Projects Projects Procurement and Supply chain management is not new – to varying degrees it’s the tool used to ensure critical production needs are met, costs are managed and processes are streamlined. There is no discrimination based on Project size, or which segment of the industry your business occupies. With few exceptions, this is still largely managed as a procurement and cost control issue in the energy sector. Consideration of SR issues widens the court, Although the type of obstacles vary depending on factors such as location and depth of geological, technical and operational knowledge and nature of operating unit, challenges can creep into any part of the supply chain and create problems with ripple effects, whether it’s with delivery of in-bound materials or spare parts prior to demanding project schedule. With boom in digitalization, IOTs and online platforms, Procurement and Supply chain management (PSCM) in energy markets has evolved significantly over the past 20 years yet many organizations fail to execute their operating model towards peak efficiency and reinforce their objectives regarding cost reduction and efficiency. The traditional approach to procurement does not consider the new material risks triggered by the COVID-19 pandemic, including potential COVID-19 impacts on construction programmes, productivity and supply chain. considering risk allocation and generally the principle that the risk should be borne by the party best placed to bear it. While this is not always able to be fully applied, it is an appropriate yardstick when looking at the new risks triggered by COVID-19. They are unlike many current risks in that they can simultaneously relate to government regulation (global and local), physical health and economic contraction. Accordingly, these risks are difficult (or near impossible) for either party to efficiently price and generally fall into the bucket of shared risks. The conference will cover lessons learned during the covid- 19 pandemic and prediction of future challanges: - Dealing with critical project drivers (time, cost, quality and scope) and how they are affected when Alert Levels change or are redefined. - Framework for the calculation of contractor entitlement for time and costs associated with delay and disruption from COVID-19 related events, including your position on profit (noting government guidance generally points to the philosophy of neither party materially benefiting). - Ensure the framework is tested both prior to your market approach and as part of offer evaluation / negotiations, and consider including the contractor at this stage. - How you can appropriately engage with potential contractors as part of the procurement process. Contractors generally have better visibility of risks in the sub-contracting and supply market and their feedback in this regard can help ensure your offer to market is attractive. - Consider a collaborative integrated team approach to increase knowledge transfer, project efficiency. - Developing a more agile supply chain and Addressing forecasting accuracy. - Future of global supply-chain and effects of covid-19 control measures. - What factors are causing global supply chains to shrink. - Discuss how the prevailing coronavirus pandemic has affected the supply chain.