Procurement Study of OCTG Joints (Drilling Pipes)
We have selected an area of expenditure (like a category) which is Purchasing Oil Country Tubular Goods (Drilling Pipes) for oil well in Oil and Gas Industry. This task requires you to develop a document that creates a sourcing plan for future requirements. In the sourcing plan, you should explain:
(1) The roles of procurement and supply in managing this area of expenditure underlining the inputs that may be made by its stakeholders
-How procurement adds value by:
- Knowledge of market
- Knowledge of risks (commercial risks - market risks)
- Knowledge of innovation
- Understanding needs vs wants
- Tangible and intangible benefits
- Managing risks
(2) Techniques that can be applied to the area of expenditure to improve added value
-How we categorize our spent by using following tools:
- Supply positioning
- PESTLE
- 5 Porters
- SWOT
And as the results of the tools how your approach of sourcing is going to be (how your approach the supplier)
- What kindly of supplier he is likely to be (eg. High risk, high spent) -Stakeholders Power (internal and external stakeholders) -Customer Preferncing (how supplier is looking at you)
(3) Inclusions that should be made in contracts formed in the future
-Key clauses needed to be included for that specified category like:
- Key personnel
- Liquidated damages
- Penalties
- Warranties
- IP - intellectual property
- Exit clauses
- KPIs - SLAs
- Lead time, delivery
(4) Measures that can be taken to select effective suppliers
- How you will evaluate suppliers
- Pre-qualification of suppliers
- What kind or criteria your choose
- What kind of market research our would choose
(5) Any aspects of the purchase/supply that may require negotiation
- Depending on where you categorize your product or service, depends where it is competitive negotiation or collaborative negotiation.
- What are the things or areas to negotiate about
- How to protect yourself in the future e,g protect against price increase.
Guidance
Your answer should consist of approximately 5,000 words and should be supported by a title, contents page, Executive summary, Introduction, references and a bibliography. Any source materials such as web sites, reports, articles, market data, journals or texts should be referred to in your work. As this is an integrative assessment, the learning pulls on the syllabus coverage and capabilities of all the modules on the Program:
Driving value through procurement and supply
Managing expenditures
Developing contracts
Sourcing essentials
Negotiation in procurement and supply
This Assignment is related to submission of Paper to Chartered Institute of Procurement & Supply (CIPS) certificate. please read the requirement and confirm the scope is clear before proceeding.