Course Details

Objective

By the end of this course, participants will be able to:

1. Understand the principles of tactical purchasing and its role in cost optimization.
2. Apply advanced procurement techniques to reduce costs and improve operational efficiency.
3. Build and manage strong supplier relationships to drive value creation.
4. Develop negotiation skills to secure favorable terms and achieve cost savings.
5. Identify and mitigate procurement risks in a volatile market environment.
6. Use digital tools and data analytics to optimize purchasing decisions.

Content

COURSE PROGRAM:

Day 1: Introduction to Tactical Purchasing and Cost Optimization

• Understanding the Procurement Function in Oil and Gas
  • Overview of procurement processes and their strategic importance.
  • Differences between tactical and strategic purchasing.
  • Key challenges and opportunities in oil and gas procurement.
• Principles of Cost Optimization
  • Cost drivers in the oil and gas supply chain.
  • Strategies to reduce costs while maintaining quality and performance.
  • Role of tactical purchasing in achieving overall cost efficiency.
• Purchasing Policies and Compliance
  • Establishing clear procurement policies to ensure compliance with regulations.
  • Adhering to industry standards and corporate governance in purchasing practices.

Day 2: Supplier Management and Negotiation Techniques

• Supplier Selection and Qualification
  • Criteria for evaluating and selecting suppliers in the oil and gas industry.
  • Building a reliable supplier base: local vs. international sourcing.
  • Supplier audits and performance evaluations.
• Negotiation Strategies for Cost Savings
  • Principles of effective negotiation in procurement.
  • Preparing for negotiations: understanding supplier costs and motivations.
  • Techniques for achieving win-win outcomes.
• Building Strong Supplier Relationships
  • Establishing long-term partnerships with key suppliers.
  • Managing supplier risks and resolving conflicts.
  • Leveraging supplier innovation for cost and performance improvements.

Day 3: Tactical Purchasing Techniques and Tools

• Advanced Purchasing Practices
  • Techniques for bulk buying, spot purchasing, and just-in-time procurement.
  • Leveraging economies of scale and volume discounts.
  • Identifying opportunities for group purchasing within the organization.
• Spend Analysis and Cost Control
  • Conducting spend analysis to identify cost-saving opportunities.
  • Categorizing and prioritizing purchases based on cost and risk.
  • Tracking and managing procurement expenses using modern tools.
• e-Procurement and Digital Tools
  • Using technology to streamline purchasing processes.
  • Implementing e-auctions, e-sourcing, and supplier management platforms.
  • Benefits of automation and analytics in procurement decision-making.

Day 4: Risk Management and Legal Considerations

• Procurement Risk Management
  • Identifying and mitigating risks in tactical purchasing.
  • Managing market volatility and supply chain disruptions.
  • Contingency planning for critical purchases.
• Contract Management and Legal Compliance
  • Key elements of supplier contracts and agreements.
  • Understanding legal considerations in procurement (e.g., anti-corruption laws, trade regulations).
  • Managing contract disputes and enforcement challenges.
• Ethical and Sustainable Procurement
  • Ensuring ethical practices in supplier selection and purchasing.
  • Incorporating sustainability and ESG (Environmental, Social, Governance) principles into procurement.

Day 5: Implementing Tactical Purchasing Strategies

• Case Studies and Best Practices
  • Real-world examples of successful cost-optimization initiatives.
  • Lessons learned from procurement challenges and successes in oil and gas.
• Developing an Actionable Tactical Plan
  • Creating purchasing strategies aligned with organizational goals.
  • Implementing continuous improvement processes in procurement.
  • Setting KPIs and monitoring the effectiveness of purchasing strategies.
• Future Trends in Procurement
  • Emerging trends in digital procurement and supply chain innovation.
  • Adapting purchasing practices to evolving market conditions.
  • Preparing for the future of tactical purchasing in the oil and gas industry.

NOTE:

Pre-& Post Tests will be conducted.

Case Studies, Group Exercises, Group Discussions, Last Day reviews, and assessments will be carried out.

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Methodology

A highly interactive combination of lectures and discussion sessions will be managed to maximize the amount and quality of information and knowledge transfer. The sessions will start by raising the most relevant questions and motivating everybody to find the right answers. You will also be encouraged to raise your own questions and to share in the development of the right answers using your own analysis and experiences.  Tests of multiple-choice type will be made available on daily basis to examine the effectiveness of delivering the course.

Very useful Course Materials will be given.

• 30% Lectures
• 30% Workshops and work presentation
• 20% Group Work& Practical Exercises
• 20% Videos& General Discussions