Opportunities and Challenges
Globalization of the Supply chain and multiplication of actors change End Users - Suppliers relationships:
- New solutions and new sources of supply facilitate the benchmarking on good practices
- Remote locations and extreme conditions increase the requirements on local services.
Consequently the End Users cannot rely anymore on their technical requirements and approval, they must interact in the Supply chain to synchronize EPCs, Suppliers and their own entities.
Operational performances drivers
Since Suppliers' capabilities influence directly End Users performances, the Operational drivers below secure sourcing at competitive conditions:
- Set up the Proactive process to qualify Suppliers on technical, sourcing and service capabilities
- Implement Frame Agreements with Strategic Suppliers before the EPC bidding process.
- Validate with Critical Suppliers the business model for order execution and local service support before final decision.
- Update, Simplify and Harmonize technical and commercial specifications
- Integrate Services performances in specifications
- Speed up the qualification process of Suppliers while more comprehensive with KPIs easier to follow up
- Implement your Market leadership Road Map (Budget & Action plan) on Supply side
- Deploy the Frame Agreements with Strategic Suppliers before the EPC bidding process.
- Assess the business model of Critical Suppliers for order execution and local service support before final decision
- Build contingency plan with Suppliers for critical equipment
- Set up the good practices for Project execution and Project based Sourcing (Global, Low costs, Local Content)
- Design your Project Management and Operations feedback closed loop to evaluate Suppliers performances, update good practices and feed the continuous improvement process