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Supply Chain Code of PracticeThe Supply Chain Code of Practice was re-launched at the beginning of 2006 to encourage purchasers and suppliers to work together to develop and maintain an effective supply chain, responsive to the oil and gas industry's evolving requirements. This latest version of the code is a set of best practice guidelines which, when adopted and implemented by individual companies operating on the UK continental shelf, drive an improvement in behaviours across the industry during commercial negotiations. 
It builds on the success of the first Supply Chain Code of Practice which was adopted in the North Sea in 2002 and brought about better cash flow through use of 30 day payment terms, more widespread participation in FPAL, the industry's key tool for sourcing and selecting suppliers, and better demand and resource planning. Overall, the code's approach to streamlining commercial processes helps individual companies to improve performance, eliminate unnecessary costs, add value and boost competitiveness, as well as strengthening the North Sea's position as a centre of excellence in the wider global market place. The Code tackles behaviour at three key stages in the commercial process, under the headlines of Plan, Contract and Perform and Pay. PlanThis section of the code aims to help companies plan ahead more effectively. Its cornerstone is the industry's annual PILOT Share Fair where key oil and gas players share their future activity plans for North Sea projects with SMEs, offering up access to countless new business opportunities. The 2005 event, held in Aberdeen, was a huge success. 17 major companies presented their forward plans, involving 150 personnel from presenting and supporting organisations and 414 delegates. ContractHere, the code assists major purchasers by providing centralised pre-qualification data and standard processes for tendering and negotiation. This includes the Model ITT (Invitation to Tender) Templates, the first of which was officially launched for the mobile drilling rigs sector in January 2006. Model ITTs provide a standard layout for suppliers to follow when structuring their response to buyers' request for services or equipment. The major benefits for those who follow the framework include reduced cost and time saved by eliminating duplicated information. The Model ITTs are available through FPAL's website at http://www.fpal.co.uk. Perform & PayThis section encourages companies to provide feedback on a supplier's or buyer's performance, using FPAL as the intermediary. Participants in the code also undertake to guarantee payment for products and services within 30 days. Specialist InputPILOT's Progressing Partnership Workgroup, which developed the original code in 2002, was last year superseded by the Supply Chain Steering Group.
Support is provided by the UK Supply Chain Management Network, represented by the purchasing teams of companies from across industry and from which specialists were recruited to draft the principles of the new code. Further InformationThe Code: Commitment form: Other websites: Sign-upDemonstrate your company's commitment to best practice by getting your most senior UK Manager and UK Supply Chain Manager to sign the commitment form and return to Martin Barry at the DTI, Atholl House, 3rd Floor, 86-88 Guild Street, Aberdeen AB11 6AR. Once you've signed up we will keep you updated with news and networking events from the UK Oil and Gas Industry Supply Chain. EnquiriesRebecca Lennox, PILOT Secretariat, Department for Business,
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