CSCEE

Effective Supply Chain Management in Oil, Gas, and Power Generation

Effective Supply Chain Management in Oil, Gas, and Power Generation. Subject Matter Covered in the Oil & Gas Supply Chain Management:

• Strategic Supply Chain Management (20%)

• Supplier Partnering (20%)

• Production and Inventory Control (20%)

• Accounting and Performance Measurement (20%)

• Organisation and Leadership (20%)

MODULE 1. FOUNDATIONAL TOPICS

What Exactly is Supply Chain Management?

• Essential Definitions
• Recent Development of Supply Chain Management
• Why Software Can’t Solve the Problem
• The Key Principles of Supply Chain Management
• An Executive’s Supply Chain Strategy Framework

​The Oil and Gas Supply Chain

• The Early Days
• 1960s: Optimization
• 1970s: Technology
• 1980s-1990s: Globalization
• 2000s: Power Shift
• Leaders and Laggards

Why Supply Chain Management is Critical For The Oil And Gas Industry Today

• A Competitive Necessity
• Getting More Important
• The Bullwhip Problem

The Goal

• From No Metrics to Too Many Metrics
• Economic Value Added(EVA)
• Level 1 (CFO-Oriented) Results Metrics
• Level 2 (Functional VP-Oriented) Results Metrics
• Channel Spanning Performance Measures​​

What Makes Supply Chain Management Strategic

• Defining the Four Generic Supply Chain Strategies
• Configuration
• Coordination
• Improvement
• Supply Chain Strategies for Global and Regional Economic Growth
• Supply Chain Network Design

MODULE 2. SUPPLIER PARTNERING

Outsourcing

• Which Activities to Outsource and Which to Keep In-house
• Examples such as Freight Forwarding, Expediting, and More
• Unbundling Transport from The Product Price – Why and How
• Terms of Freight​

Combined Purchase And Operating/Maintenance Agreements

• Economies of Scope
• Economies of Scale
• Computing an ROI
• Go-No-Go decisions
• Operating Leases
• Maintenance Contracts
• Term of Agreement
• Clauses and Conditions
• “Out” Clauses and Exit Strategies​

Architecting Supplier Partnerships

• Ownership of the Inventory
• Provisioning of Spares
• Rules of Engagement with “Sister” Companies
• Transfer Prices
• Bidding Rules and Exceptions​

Strategic Sourcing

• A Proven Process Map
• Spend Analysis
• Supply Market Analysis
• Category Strategies
• Standardization and Simplification of Specifications
• Managing Sourcing Events
• VMI
• Examples: Freight Forwarding, Expediting, and More​

Negotiation And Partnerships

• Forming Partnerships
• Buyer vs. Supplier Leverage: Power Plays
• Open Book Negotiations
• Dealing with Core vs. Non-Core Suppliers
• Target Pricing
• Indexing Prices
• Setting Price Premiums for Customized and Expedited Services

MODULE 3. WORLD-CLASS PRODUCTION AND INVENTORY CONTROL PRACTICES

Capacity Planning

• Site Location
• Flexible Capacity Models

​Throughput Analysis

• Theory of Constraints
• Assessing Facility Capacity
• Measuring Capacity Utilization
• Bottleneck Elimination Procedures
• Involving the Work Force

Just-In-Time

• Replenishment Mechanisms
• Kanban
• Integrating S&OP with JIT
• Managing Long Supply Chains in a JIT Environment
• Batch Pull
• Kitting
• Raw Materials, WIP, and Finished Goods Order Quantities

Optimal Inventory Levels And Placement

• Managing the Interfaces Between Departments such as Maintenance, Assets, Commercial, Inventory, Purchasing, Stores, Logistics, and Inspection
• Who Owns the Inventory​

Sales and Operations Planning

• Managing the Interfaces Between Departments such as Maintenance, Assets, Commercial

Collaborative Inventory Management

• Multi-Echelon Inventory Planning Processes
• A Process for Building Trust
• Changing the Forecast and the Plan
• Information Systems and Support Tools​

Demand Planning

• Heuristic Methods
• Moving Averages
• Exponential Smoothing
• Trend Analysis
• Econometric Models
• Delphi Method
• Multi-Characteristic Approaches

Warehousing, Storeroom and Transportation Optimization

• Storeroom Management
• Working With carriers and logistics providers
• Mode Selection
• On-Dock Operations
• Customs Clearance
• Landed Cost

Information Systems

• Company Wide Interoperability between ERP and Supply Chain Systems
• CAD/CAM
• Network Design
• SRM
• Demand Planning
• WMS
• CRM
• Cost and Pricing
• E-Commerce
• Best Practices in RFID and Barcodes
• IT/EDI/Paperless

MODULE 4. ACCOUNTING & PERFORMANCE MANAGEMENT

Finance and Accounting

• Key Process Metrics
• Additional Detailed Process Metrics
• How Much Influence Should End-Users Have on the Vendor Performance Scorecard
• How much Weight Price Should Have in the Overall Evaluation
• Best-in-Class Processes for Technical vs. Commercial Evaluation of Bids
• Structuring the Bid Process to Identify and Foster Creativity, Innovation, New Ideas and New Technologies

Risk Management

• Supply Chain Risk Factors
• 7 Steps to Mitigate Risk
• Examples of Good and Bad Risks
• Supply Chain Security
• Governmental Regulations and Compliance

Continuous Innovation

• Key Success Factors of an Innovation-Driven Supply Chain Strategy
• ROI Assessment of Innovation
• Performance Advantages of an Innovation Supply Chain Strategy
• Oil and Gas Supply Chain Best Practice and Benchmark
• Supplier Specific Benchmarks
• Technical and Commercial Evaluation
• Channel Performance Measures
• Vendor performance scorecard
• Continuous Market Feedback Loop At Customer Touch-Points
• Early Supplier Involvement
• Early Customer Involvement

Supply Market Intelligence

• Making the Business Case for a Market Intelligence Program
• Negotiating with Suppliers Based on External Information
• Monitoring Demand and Supply Conditions
• Negotiating with Suppliers Based on External Information
• Monitoring Core Suppliers’ Performance

Organizing, Training, And Developing SCM Staff

• Cross-functional project management
• Change management
• Training
• Inter-organizational psychology

Benchmarking Toward Best Practice & Performance

• Where to Get Competitive Benchmarks
• Where to Get Supplier-Specific Benchmarks
• Setting and Adjusting Targets