Procurement Challenges in the Oil & Gas Industry Addressed in the 2nd Edition of the Supply Chain Forum04 Jun 2014 • by Natalie Aster
LONDON – Market Publishers Ltd is happy to announce the successful completion of the 2014 Supply Chain in Oil and Gas forum, held at Royal Rose Hotel in Abu Dhabi, UAE last 19 – 21 May 2014 and organized by Praxis Global Research to discuss the recent regulations and strategies in Supply Chain.
Materials and supply procurement is a profit-center operation in Oil and Gas organizations, and its profit contribution is becoming more important compared to construction and engineering; therefore, to properly manage the supply chain in the industry is significant. This interactive forum brought together industry experts from Saudi Aramco, Mellitah Oil and Gas, Takreer Refinery, and Yemen LNG, among others, to discuss the relevant challenges faced by the oil and gas sector in the area of supply chain and procurement.
The 3-day forum started with a full day Master Class certified by CIPS and run by Ian Heptinstall of PMMS Middle East, who believes that the management of supply chain is crucial in the oil and gas industry for a number of reasons, among which is the massive amount of money spent in the supply chain. “Supply chain is very complex – the significant risks of delay and cost can have a very big impact (in organizations),” says Ian. In his Master Class, topics such as choosing the supplier’s selection criteria carefully, expediting the progress management, and approaches to manage key suppliers – to name a few – have been covered. Case-studies and best practices from oil and gas were presented.
In the following 2 days of the forum, major concerns like supplier and supply chain management, risk management and compliance in supply chain, and synchronizing supply and demand have been addressed through a series of case-study presentations and breakout discussions. Several issues and challenges were identified during the highly interactive breakout sessions. With cost being one of the major issues in supply chain, experts discussed the challenges to effectively reducing it and then brainstormed the solutions. Among the challenges that were identified are enhancing the competition and negotiation with suppliers, reducing carry-over cost by inventory, and leverage spending – to name a few. The solutions include consolidate shipment/optimization, lean methodologies, and category management, among others.
The forum continued with experience sharing from Juwad Al Omari from GE WATER AND PROCESS, Arun Jani from PETROFAC, Rebecca Fox from CIPS MENA, and Ali Egal from BOROUGE. These esteemed speakers shared their industry experience through real life-case solutions in this interactive platform.
The third edition, to be held in 2015, is expected to continue addressing timely and relevant issues in the field of Supply Chain in the oil and gas industry.