Oil and Gas Procurement Process and Strategies Masterclass

Why Select this Training Course?

The oil & gas industry is more of a high-cost and high-risk industry and is extremely competitive. High-value contracts are signed with the suppliers, and most of the time, these contracts are negotiated poorly. This poor negotiation power is a source of problems and revenue leakages in the industry. To save costs and resources for the oil & gas industry, understanding the suppliers and their industries offers better results than trying to negotiate aggressively. Suppliers often have valuable ideas that can benefit organisations, like improving processes, accessing new markets, adopting new technologies, or finding alternative materials. These ideas can lead to significant performance improvements for organisations, sometimes more than just through negotiations alone.

The Rcademy Oil and Gas Procurement Process and Strategies Masterclass aims to offer an extensive explanation of the procurement activities and techniques relating to the oil and gas sector. The training program encompasses all stages of the procurement process, including understanding the requirements of an organisation and overall planning and strategy of procurement, selecting adequate vendors, signing contracts, and assessing vendors’ performance. It also provides practical and real-life scenarios and trends to ensure that participants get adequate knowledge and skills to enhance procurement in this challenging and evolving industry.

• Supply chain and procurement officers concerned with the procurement processes and managing the supply chain of the oil and gas industry.
• Employees and managers in the procurement department of any organisation who are involved in the procurement process, such as purchasing raw materials, equipment, or services and selecting appropriate suppliers or vendors.
• Purchasing officers or contract managers responsible for developing, negotiating and administering contracts within the context of procurement and supply chain management in the oil and gas industry.
• Project managers in the oil and gas sector are individuals accountable for planning, financing, coordinating, and monitoring projects in the industry.
• Finance and operations managers within oil and gas organisations responsible for managing the financial processes in organisations and managing the business activities and procurements of the organisations.

What are the Course Objectives?

After completing the Rcademy Oil and Gas Procurement Process and Strategies Masterclass, participants will be able to;

• Analyse the specifics of the procurement process and peculiarities specific to the oil and gas sector.
• Learn how to set up successful procurement strategies that reflect the overall direction of the organisation.
• Acquire detailed information about the planning, sources, negotiation, and contracts for procurement.
• Understand various strategies for managing the relationships and performance of suppliers.
• Evaluate the market trends and the economic factors influencing procurement choices in organisations.
• Address, manage, and control risks and compliance issues within procurement processes.

How will this Course be Presented?

This course is all about making sure participants learn and grow. Practical methods are deployed to keep learning engaging and active. Experienced professionals teach the course, drawing from their own years of practice. The course content is based on thorough and in-depth research, ensuring it’s relevant and up-to-date.

In the Rcademy Oil and Gas Procurement Process and Strategies Masterclass, participants will get a mix of practical and theoretical learning. The program provides slides, lecture notes, case studies, videos, and real-life examples, allowing attendees to have a comprehensive learning process. Participants will also take part in quizzes, seminars, and practice sessions. A feedback section is also available to ensure participants can leave comments and suggestions for improved learning.

What are the Topics Covered in this Course? 

Module 1: Fundamentals of Procurement

• Understanding the purchasing process step by step
• Exploring purchase requisitions, statements of work, RFQs, and purchase orders
• Differentiating requirements within purchase orders

Module 2: Procurement Technology Insight

• Introduction to enterprise resource planning
• Utilising electronic data interchange
• Managing inventories and fleets through technology

Module 3: Purchase Methods in the Oil & Gas Sector

• Overview of requisitions, standard POs, contracts, etc.
• Utilising purchasing cards and travel & entertainment expenses
• Catalogue ordering and material requirements planning (MRP)
• Automated system-generated orders

Module 4: Document Management

• Understanding specifications and their variations
• Awareness of specification pitfalls

Module 5: Supplier Selection Strategies

• Effective supplier evaluation and selection
• Efficient management of supplier information

Module 6: Metrics for Supplier Performance Evaluation

• Key metrics:
  • Inventory turnover
  • Cash cycle
  • Return on sales
• Analysis of demand flexibility and production efficiency
• Evaluation of product development metrics

Module 7: Decision-making Tools for Oil & Gas Investments

• Utilising decision trees and real options reasoning
• Financial metrics: IRR, NPV, payback period, ROI, etc.
• Application of Pareto Analysis and Profitability Index

Module 8: Leakage Management in Oil and Gas

• Introduction to spend analysis and its deployment
• Maximising benefits through spend analysis

Module 9: Risk Management in the High-Risk Oil & Gas Industry

• Risk transfer via contracts and tenders
• Mitigating risks through effective contract management

Module 10: Fundamentals of Supply Chain Management

• Understanding the Bullwhip Effect and its impact
• Recognising the importance of supply chain management

Module 11: Essentials of Inventory Management

• Exploring inventory costs and their components
• Functions and types of inventory
• Introduction to just-in-time inventory management
• Understanding the total cost of ownership
• Implementing inventory control techniques
  • ABC analysis, economic order quantity (EOQ)
  • Computing EOQ with discounts
  • Reorder point calculation

Module 12: Negotiation Skills

• Preparation strategies for effective negotiations
• Adopting a strategic approach to negotiations

Module 13: Discount Analysis

• Introduction to discount analysis and its mechanisms
• In-depth exploration of discount analysis methods

Module 14: Procurement Tools and Strategies

• Procurement process:
  • Initiating data collection and material valuation techniques
  • Formulating and executing procurement strategies
  • Exploring non-traditional approaches to procurement
• Crafting procurement strategies and execution plans

Module 15: Understanding Pricing Strategies

• Overview and understanding of various pricing strategies

Module 16: Supplier Management

• Balancing supplier information and deployment strategies
• Utilising cost modelling for negotiation advantage
• Ensuring supply continuity and exploring sourcing alternatives
• Leveraging supplier innovation and process improvement
• Enhancing the image of the purchase manager within the organisation

Module 17: Introduction to Logistics

• Overview of logistics and its components
• Exploring transportation modes: road, air, sea
• Understanding key concepts: bill of exchange, letter of credit, etc.
• Introduction to warehousing and incoterms

Module 18: Business Process Reengineering in Industry

• Introduction to business process reengineering
• Identifying processes suitable for reengineering
• Understanding the growth disparity between start-ups and established firms
• Implementing business process reengineering in procurement

Module 19: Technology and Digital Transformation in Procurement

• Emerging technologies in procurement
  • AI
  • Blockchain
  • IoT
• Digital procurement tools and platforms
• Use of generative AI
• Seismic imaging and waste management drilling
• Implementing e-procurement systems
• Circular economy and sustainability
• Cross-functional coordination and enterprise-wide optimisation