Case study

Procurement transformation for an oil and gas company

Situation

An integrated oil / gas conglomerate launched a group-wide, multi-phased “Procurement Business Initiative” project to transform its procurement function to become more strategic and deliver sustainable value to the organization. Delivery Partners provided comprehensive analytical support to the consultant.

Our work

SCM strategy

  • Researched the best practices for strategic supply planning and sourcing
  • Analyzed spend data for major SBUs and and developed a spend tree
  • Conducted a high-level diagnostics and identified benefit potential at the group level

HR and organization

  • Administered survey to procurement professionals to understand roles performed, categories purchased, training received, etc.
  • Carried out rigorous best practice analysis to identify key opportunities for client
  • Assessed capabilities institutionalized in the procurement organization
  • Developed draft performance management dashboard

Turnaround optimization

  • Gathered cost and performance data from SBU turnaround managers
  • Surveyed client experts to identify the key improvement opportunities
  • Assessed client turnaround performance against best practice benchmarks

Results

  • Established the spend baseline across major SBUs
  • Developed detailed category profiles based on internal analysis, external analysis, opportunity assessment
  • Recommended approach for procurement organization design and capability development
  • Determined baseline cost for turnarounds, cost of budget and schedule over-runs
  • Recommended organization design to manage turnarounds