1. SUPPLY CHAIN
IN
OIL AND GAS SECTOR
NITIN BIGHANE
ROLL: 220
PGDIM

2. ----- OIL AND GAS SUPPLY CHAIN CHALLENGE -----Manage and oversee
the supply chains in
an effective manner in
order to reduce cost
as well as to enhance
and guarantee
efficient operations.
• Types of shipments made vary widely from gloves to pipes, valves, cranes, chemicals, cement, steel, and drilling
rigs
• Immense array of supplies to be moved daily and frequently in large quantities domestically, globally, onshore
and offshore
• A drilling contractor is required and as many as 45 or more different services are required to drill and complete
each well
• Reliability of suppliers is must so as to reduce need of inventory of raw material, quality inspection systems,
rework, and other not-value adding activities, thus resulting in a lean production.
The supply-chain in tubular
delays in
SUPPLY CHAIN• LINK IN OIL ANDgoods isrigINDUSTRY the arrival of pipes, casing, tubing, and other
GASimportant as and consequently high operating costs.
accessories, can result in extensive
downtime
Exploration
Production
Refining
Marketing
COORDINATION
CONFIGURATION QUESTIONS
•
what product-service bundle to produce
•
what portions of the bundle to produce in house and what portion to purchase from
others
Consumer
• ensuring supplier effectiveness in cost, timeliness and
quality
• setting appropriate targets for inventory, capacity, and
•
facility capacity
•
location of facilities
• monitoring demand and supply conditions
•
type of technology to adapt
• communicating market and performance results to
•
handling communications between suppliers and customers
•
standards expected of customers and suppliers
lead time
customers and suppliers.

3. STRATEGIES FOR SUPPLY-CHAIN
COORDINATION
Relationship Management: integrate its decisions with those made
within its chain of customers and suppliers
The Uniform Commercial Code (UCC): delivery obligations for the
seller of goods when no place of delivery has been agreed upon
Segment Customer based on need: Different approaches for meeting
different requirements
Customized Logistics Network: Delivering right quantity at right time
Watching Market Signals and Plan accordingly: Planning based in
demand forecasting
Partnerships To Enhance Supply-Chains: involved in a global
supply-chain that involves domestic and international
transportation, value-chain strategic warehouse management, order
and inventory visibility and control, materials handling, import/export
facilitation, and information technology thus the shipper and the oil
company are jointly and mutually involved.
Strategic Sourcing: suppliers who have consistently demonstrated
superior performance deserve a favourable status
Supply-Chain Wide Technology Strategy: Information readily shared
back and forth

4. Oil and Gas contribute to 58 % of world’s energy source
Its important to do this reliably, effectively and efficiently
THANK YOU
Source:
http://prosaamya.com/website/oil-gas.html
http://www.barrelstrength.com/2012/09/page/2/
http://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=4&ved=0CFEQFjAD&url=http%3A%2F%2Fwww.cluteonline.com%2Fjournals%2Findex.php%2FJBER%2Farticle%2Fdownload%2F2552%2F2598&ei=pWLUd64Naa27QayrIHIDg&usg=AFQjCNGgMa4qmojSSRTB5MXGGOH7RL7A_g&sig2=u-kV6RuNChrpKH89T6u2BQ&bvm=bv.50165853,d.ZGU&cad=rja