• Class and Course

    Supply Chain Strategy

    Developing an effective procurement and Supply Chain Management (SCM) strategy can make valuable quantifiable contributions to a company's performance.  This practical course shows participants how to adopt a "best-practice" model and outlines the latest thinking in upstream petroleum industry procurement.  Extensive use will be made of oil industry case studies, examples and exercises, with participants working in syndicates to analyse problems and recommend solutions as they progress through the model. 

    The emphasis will be on managing the supply chain in order to deliver maximum value at minimum cost, implementing a best-practice process, adopting innovative ways to select contractors, and prepare tender documents to manage contract risk.

    Day 1

    Best Practice Procurement and Supply Chain Management (SCM)

    • What is a contract? 
    • What is the supply chain and how do we manage it? 
    • Developing a best practice procurement process 

    Participants will learn how the contract can be seen from different viewpoints.  A contract can be seen as a legal instrument and as an investment tool.  Recognizing this will help them understand how to achieve the benefits of SCM, such as saving money through the process of managing contracts from beginning to end.

    Day 2

    Contracts Strategies 

    • What makes the petroleum industry different? 
    • What is a contracts strategy and how do we develop one?
    • The role of contracts policy and procedures 
    • Alternative contracts strategies

    Through the use of oil industry case studies and examples, course participants will learn the differing perspectives of the role of government, national oil companies (NOC's) and co-venturers.  This will enable them to developing a contract strategy with its essential ingredients.

    Day 3

    Tendering Pre Contract Award 

    • How to carry out a contract risk assessment for strategy formulation and contractor selection  
    • Developing quality Scopes of Work (SOW): functional versus technical specifications  
    • How to choose an appropriate contract type and compensation method  
    • Preparing contractor selection criteria  
    • How to evaluate tender submissions to ensure best-value selection  

    Participants will learn industry best practice to choose the most suitable contractor or supplier to approach using the SOW.  They will also learn how to select which provides the best value for money and how to avoid common mistakes in the process. Industry examples will be used to illustrate each topic.

    Day 4

    SCM Post Contract Award 

    • Understanding the "small print" of contractual language
    • Terms and conditions  
    • How to manage the contract after it has been awarded 

    On the fourth day, learning how to get the contract off to a professional start and the tools to use to ensure contract delivery is achieved will be the focus.  Specific topics that will be covered over how to manage a contract after it has been delivered will include the role of the “kick off meeting”, preventing and resolving disputes, managing the quality, cost, and performance, and how to give contractor feedback.

    Day 5

    Performance Management & Review 

    • How to apply a performance review process consistent with the SOW and the strategy
    • Did the strategy work?
    • Post contract reviews, appraisal, and lessons learned
    • Ethical considerations in SCM and contracting 

    Course participants will learn how to ensure the implementation of the contract needs in a hands on approach, which in turn could be made significantly easier by a structured approach.

    This course is aimed at personnel of all levels and in all disciplines who have responsibility for, and involvement in, the entire procurement process. This includes line operational managers and specialists, as well as contract managers and contract specialists.


    Currently there are no scheduled classes for this course.

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