Oil and Gas - Technology Procurement Transformation   15-slide PPT PowerPoint presentation slide deck (PPTX)
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Oil and Gas - Technology Procurement Transformation (PowerPoint PPTX Slide Deck)

PowerPoint (PPTX) 15 Slides

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Explore a strategic multi-year Technology Procurement Transformation for Oil & Gas, crafted by industry experts. Enhance vendor performance and optimize operations.
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BENEFITS OF THIS POWERPOINT DOCUMENT

  1. Oil and Gas
  2. Technology procurement program
  3. Large scale technology sourcing

OIL & GAS PPT DESCRIPTION

This product (Oil and Gas - Technology Procurement Transformation) is a 15-slide PPT PowerPoint presentation slide deck (PPTX), which you can download immediately upon purchase.

This document presents a comprehensive multi-year Technology Transformation program tailored for a prominent multinational Oil and Gas company. The overarching objective of this program is to optimize the utilization of information and information technology, thereby fostering superior performance and growth.

Under the purview of this extensive technology transformation program, the client's procurement team received a directive to enhance vendor performance. In response, the Vendor Sourcing Program (VSP) was established with the mandate to identify global opportunities and opportunities across Business Units, expedite the development of sourcing strategies, engage incumbent vendors in negotiations, and institute sustainability plans.

The VSP initiative boasts a broad scope, encompassing various domains, such as Hardware, Software, Network/Carrier, Consulting, Staff Augmentation (temporary contractors), and Technology Technical Services.

In tandem with the primary objective, the program encompasses several secondary objectives, namely:

Fostering Stronger Vendor Relationships: Cultivating more robust relationships with vendors to garner greater support in executing the client's technology strategy within the Oil and Gas industry.

Rationalizing the Supply Base: Streamlining the supply base by reducing the number of vendors and contracts, thereby facilitating more efficient procurement practices.

Attaining Market Competitive Rates: Ensuring that the procurement of products and services is carried out at competitive market rates.

Establishing a Global Vendor Network: Setting up an established set of vendors capable of catering to global, regional, and local requirements.

Enhancing Service Delivery and Invoicing Processes: Enhancing service delivery capabilities and refining invoicing procedures to ensure accuracy and efficiency.

Strengthening Organizational Sourcing and Procurement Governance:

This document provides an illuminating insight into the strategic planning and execution of a technology transformation program geared towards optimizing the client's operational performance and achieving sustainable growth within the dynamic Oil and Gas sector. Through a combination of meticulous planning, strategic vendor engagement, and refined procurement practices, this program represents a compelling blueprint for organizations seeking to navigate the complexities of technology transformation and vendor optimization.

Got a question about the product? Email us at support@flevy.com or ask the author directly by using the "Ask the Author a Question" form. If you cannot view the preview above this document description, go here to view the large preview instead.

Source: Best Practices in Oil & Gas PowerPoint Slides: Oil and Gas - Technology Procurement Transformation PowerPoint (PPTX) Presentation Slide Deck, Affinity Consulting Partners

OIL & GAS PPT SLIDES

Strategic Vendor Negotiation for Cost Reduction

Strategic Vendor Negotiation for Cost Reduction

This PPT slide outlines a case study where a Value Solutions Provider (VSP) successfully negotiated a contract with a security vendor, achieving significant cost savings of approximately $4 million, which equates to a 20% reduction. The project context highlights the evaluation of 5 IT vendors by Downstream LCG to manage support for over 125 custom applications. Initially, the service model was based on staff augmentation, with a clear goal to transition to managed services. The management's primary focus was on reducing total costs while maintaining service quality, especially for systems that directly impact revenue.

In the negotiations strategy section, the VSP's approach is detailed through 7 key levers. These included reducing rates based on industry benchmarks, securing multi-year discounts, and lowering transition costs. The strategy also emphasized the importance of providing efficiency gains over time, optimizing Project Management Office (PMO) costs, deferring Cost of Living Adjustments (COLA), and securing additional investments. The prioritization of rate reductions and other investments during negotiations with Tech Provider B is particularly noteworthy.

The results section quantifies the outcomes of these negotiations. It reports a reduction in application development rates for near-shore resources in Mexico by 7-9% and for off-shore resources in India by 10-20%. Additionally, prior transition costs and investments negotiated by the business unit, valued at $1.7 million, were preserved. This case study serves as a compelling example of effective vendor negotiations that can lead to substantial cost savings while ensuring quality service delivery.

Structured Vendor Sourcing Strategy Over Time

Enhancing Procurement Efficiency through Strategic Collaboration

Enhancing Strategic Partnership with Tech Provider B


$30.00
Explore a strategic multi-year Technology Procurement Transformation for Oil & Gas, crafted by industry experts. Enhance vendor performance and optimize operations.
Add to Cart
  

ABOUT THE AUTHOR

Additional documents from author: 18

The Affinity Consulting Partnership is a global powerhouse of experienced consultants, specializing in technology and digital-driven change.

Our team is comprised of individuals across the globe who have extensive expertise and a proven track record in guiding large corporations across the globe through complex business transformations. Our partners were all at some stage senior consulting ... [read more]

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