OUR EXPERIENCE
Cases
Real-world transformations delivering measurable impact across industries and geographies.
Energy / Oil & Gas
Implementing Procurement Category Management
Industry
Energy / Oil & Gas
Capability
Procurement & Category Management
Challenges
The starting point.
The newly established E&R company operated across 7 fields and 6 exploration blocks, with approximately US$250 million in annual spend across 18 product families. Its Procurement function needed to be redesigned to improve understanding of major spend, establish performance metrics and implement new best-practice processes.
Actions Taken
From strategy to action.
- Analysed historical spend, defined 105 procurement categories and developed a Strategic Matrix for Procurement to position each category.
- Assessed each procurement category based on spend versus supplier and spot versus contract.
- Designed processes to structure and manage procurement categories and defined standardised Purchase Kits.
Results
Measurable outcomes.
US$250M
ANNUAL SPEND
105
CATEGORIES
18
PRODUCT FAMILIES
- Established visibility of demand and supply profiles across the region.
- Optimised and aligned supply strategies for each procurement category.
- Improved purchasing processes and contract monitoring in line with each strategy.
- Reduced Total Cost of Ownership (TCO), supported by improved planning and better demand predictability.
- Established active supplier performance monitoring.
- Standardised procurement documents and tools.
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