Supply Chain

The Supply Chain Forum & Workfronts

2007 not only saw the birth of Oil & Gas UK, but also, as a consequence of the creation of this new pan-industry body, the formation of a new Oil & Gas UK Forum - the supply chain management issues forum. This new forum provides an active body through which representatives from the UK upstream offshore oil and gas sector’s operators, suppliers and contractors can have constructive and meaningful dialogue on issues such as supply chain development and its strategic role in continual business improvement, development and publication of best practices and the minimisation of cost and waste in the total supply chain, whilst ensuring business continuity for contractors and suppliers.

The forum offers supply chain solutions which the industry will need in order to sustain itself and grow internationally. It has 50 active members including operators, major contractors, medium, and small enterprises, trade associations and regional representatives of UK oil and gas supply chain clusters.  The forum’s chair person alternates annually from operator to contractor members ensuring representation across the world class supply chain. The current chairman is Ian Rattray, commercial and supply chain manager with Subsea 7, who is supported by vice chair Tim Desmond of BP.

With this new, full time supply chain management focus within Oil & Gas UK, Industry is increasingly recognising the importance of the supply chain and what it can deliver to the sustainability and continued success of this industry both in the UK and abroad.

In 2008, Oil & Gas UK and project teams from within the forum will tackle the following areas:

Supply Chain Research Project

The aim of this research project is to produce a compelling story about the supply chain in the sector and to evaluate the economic footprint of the oil and gas supply chain within the UK economy, defining its breadth, its high value added contribution and future growth potential.

The Changing Gear Initiative

This new initiative aims to encourage a greater level of engagement to the Industry Supply Chain Code of Practice. Key focus areas will be:

• Increase sign-up to the Supply Chain Code of Practice - embracing the new players in the sector.

• Timeliness: how can we ensure that parties share expectations and respond and progress matters on an acceptable timeframe?

• Enforcement: what is the best way to ensure compliance with the Code?

• How to ensure greater use of industry Standard Contracts, Model ITTs and FPAL.

The development of an education pathway for supply chain practitioners in the industry

Oil & Gas UK in conjunction with OPITO, The Oil & Gas Academy, and The Chartered Institute for Purchasing & Supply (CIPS) will develop and roll out a new education pathway for supply chain practitioners.

Value Contracting / Cost base alignment project

A forum project team will look at developing novel contracting models for use across the supply chain under specific circumstances. This workfront is necessary to craft possible solutions to the challenge of projects being deferred due to high contractor costs vs. contractors needs for business continuity.