Supply Chain

Question 1

Procurement & sourcing

Answer 1

4 categories:

1. Chems & Logistics
2. Drilling & eval
3. Surface equipment & services
4. indirects (facilities/ HR/ institutional services/ IT/ Travel)

Question 2

Sourcing

Answer 2

Responsible for setting up contracts w/suppliers

*consider cost/availability/ lead times/ quality etc

Question 3

Procurement responsible for:

Answer 3

Executing requisitions & orders for delivery in response to specific need, assuring products are purchased at agreed price

Question 4

Supplier categories

Answer 4

Critical: one stop
Strategic: leverage

Question 5

Sourcing plan considerations

Answer 5

Sourcing should monitor supplier performance and set targets for following year (detailed in Tier 2 supplier management procedure)

1. Projected spend
2. Cost savings
3. Quality assessment : check RIR for previous yr
4. Classification: note changes in classification or risk profile changes
5. Future projects

Question 6

Approval of new suppliers

Answer 6

• finally suppliers selection awarded/confirmed by sourcing personnel &stakeholders; notifications will be send out
• award: conditional upon part, product, service qualification as completed
• supplier set up is complete –> sourcing responsible for ensuring successful implementation by coordinating w/ procurement

Supplier award & contract finalization -> approved supplier set-up-> assign supplier manager -> supplier communication -> post award finalization-> doc storage

Question 7

No contract consequences

Answer 7

Inc chance disputes
High risk of litigation
Settled at law