stakeholder collaboration for increasing national oil and...

Stakeholder Collaboration For Increasing National Oil and Gas Supply Chain Efficiency

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Senator Nur Bahagia Center For Logistics and Supply Chain Studies

Bandung Institute of Technology

Stakeholder Collaboration-S.Nur Bahagi@ 1

Presentation Agenda

• Introduction

• Oil And Gas Supply Chain (O & G SC)

• Collaborative Model of Supply Chain

• Collaborative Planning and Control System

• Closing Remark


Trend of Business And Industry

50’ Mass Production

60’ New Product

70’ Low Cost Manufacturing

80’ Total Quality Service

90’ Speed & Cust. Relationship

00’ Supply Chain Management


Evolution of Logistics Externalities

Stakeholder Collaboration-S.Nur Bahagi@

Internal Logistics Client

3 PL Provider Client

4PL

Client

Client

Client

Business Process Mgt

3 PL Provider

IT Service Provider

<80s Insourcing

90s Outsourcing

00s 4 PL

4

Logistics and Supply Chain System


Consumer Intermedier Producer Supplier

Raw Material

Raw Material

Supply Chain Logistcs

Distribution

Supplier’s Supplier



5

Stakeholders • Supplier • Producer • Consumer • Player/Trader • Logistics Service Provider • Regulator

Object • Goods

• Basic & Strategic • Export • Free/General

• Passangers

Basic Activities •Procurement

•Storage (Warehousing & Inventory) •Delivery Services (Transportation & Custumer Services)

Link Channel Structure

Node Logistics

Coordination Rel’ship Management

General Logistics Network

Supplier Pabrik

Intermediare Consumer


Node

Link

6

Why Supply Chain Approach ?


A B C

P

X Y

You vs I Transactional

Win-Loss Partial

Product Beaureucrative

We Collaborative

Win-Win Systemic Market

Professional

Trust

Min

d S

et

Who is more competitive? Why?

Supply Chain Management Framework


Supply chain bussiness process

Supply chain management components

Supply chain network struture

2. What process should be linked with each of these key supply chain members

3. what level of integration and management should be applied for each process link

1. Who are the key supply chain members with whom to link process?

Source: Stock & Lambert (2001)

The Natural Gas Supply Chain


Source: American Petroleum Institute

The Oil Supply Chain

Stakeholder Collaboration-S.Nur Bahagi@ 10 Source: American Petroleum Institute

Development Framework of Supply Chain


SCM

Integrated

Collaboration

Process

Tools

ICT

E-SCM

Tools

Infrastructure

Organization

Procurement

Warehousing

Production

Transportation

LPDS

Collaborative Model of Oil & Gas SC

Note; SCM: Suplly Chain Management; CPFR: Collaborative Planning Forecasting & Repleinishment; SRM: Supplier Relationship Management; LPDS (Lean Product Delivery System); CRM: Customer Relationship Management


Profile of Supply Chain

13

No Profil Type & Tools

1. Supply Chain Process • Plan • Source • Make • Delivery • Return

Internal Supply Chain System •SCOR

2. Planning System •Demand Planning •Material Planning •Sourcing/Vendor Planning •Production Planning •Inventory Planning •Procurement Planning • Delivery & Distribution Planning • Project palnning

Collaborative Planning System •CPFR •SRM •VMS •APS •VMI, Consignment, SIC •VMI •ECR • CPM

3. Control System •Process •Performance

Performance Base System •Monitoring &Tracking System •Metric & Score Card System

4. Technology & Information System •Purchase Request •Pruchase Order •Traffic & Shipping •Inventory & Warehousing •User Services •Payment

Web Base & Paperless System •E-Catalog, E-RFQ •E-VMS, E-Procurement, E-Auction, E-PO •Intelligence Tracking System/ITS •E-Warehousing, E-Inventory •E-Services •E-Invoicing, E-Payment

5. Organization System Hybrid and Lean Structure 13 Stakeholder Collaboration-S.Nur Bahagi@

Collaborative Planning, Forecasting and Replenishment (CPFR)

• CPFR is a methodology in which partners in value chain coordinate plans in order to reduce the variance between supply and demand and share the benefits of a more efficient and effective supply chain.

• The CPFR is holistic approach to improving collaboration is the next natural step in the battle to cut non value-adding costs in the supply chain

• It operates as a set of business processes in which trading partners agree to mutual business and measures, develop joint sales and operational plans, and electronically collaborate to generate and update sales forecasts and replenishment plans.


CPFR Business Process

Source: CPFR.org web site, CPFR ©1998, VICS (Voluntary Interindustry Commerce Standards)

Phase Step Activity

Planning 1 Front-end agreement

2 Joint business plan

Forecasting 3 Create sales forecast

4 Identify sales exceptions

5 Resolve sales exceptions

6 Create order forecast

7 Identify order exceptions

8 Resolve order exceptions

Replenish- ment

9 Generate order

10 Delivery Execution


Supplier Relationship Management • The goal of SRM is to streamline processes and increase effectiveness of the

interaction between a company and its suppliers. • Benefit

– Increased Innovation – incorporate supply chain knowledge to enhance new product development

– Faster time-to-market – reduce new product development and introduction (NPDI) time

– Reduced product costs – collaborate with suppliers to design the cost out of products

– Reduced sourcing administration – simplify the complexity of managing an extended supply chain

– Improved negotiating leverage – price transparency leads to lower material and service prices

– Reduced sourcing cycles – bid template library, robust analytics and bid optimization tool accelerate the supplier response and evaluation process

– Fewer sourcing-related engineering change notices (ECNs) – integration with PDM and early involvement in new product development and introduction

Strategic Relationship in SRM

Steps In Establishing SRM 1. Identify - Supplier Category

• Strategic, legacy, emerging, tactical.

2. Identify - Strategic and Legacy Suppliers 3. Identify - Internal Teams

• Relationship, performance, financial, contract management

4. Identify - External Teams • Relationship, performance, financial, contract management

5. Identify - Goals And Objectives • As a team – define goals and objectives for relationship

6. Identify - Strategy To Meet Goals And Objectives • As a team – What is the strategy to obtain the Goal & Objectives

7. Identify - How To Measure Success • As a team – Define the metrics for success of meeting Goals & Objectives

8. Identify - Progress/Success (Scorecard) • Define and score entire team on progress!

SCOR Model in a Balanced Scorecard Framework

19 Stakeholder Collaboration-S.Nur Bahagi@

ICT

• e-Supply Chain Management (e-SCM) base on Enterprise Resource Planning (ERP) such as:

– e-SRM,

– e-CRM,

– e-Procurement,

– e-Contracting,

– dsb.


Example of E-Logistics

Users

Trader

C A T A L O G

Manufacturer

Purchase Request

e-PO

e-Quotation

Purchase Order

e-PO

e-Quotation

e-Proc.

e-Proc.

e-Catalog

e-Catalog

Logistics Dept

W

W

e-Inventory

e-Inventory

F I N A N C E

e-Payment

e-Payment

Software X ?

VMS

21 e-Procurement Senator Nur

Bahagi@

TOP Management

Operational Executor

Midle Management

Hybrid Organization Model


Position Task Function Personel

Top Management Policy Decision Direction Internal Source

Midle Management Tactical Decision Managerial Internal Source

Technical Staff Technical Support Specialist/ Expert Could be Outsourced

Administratif Staff Administratif Support Specialist/ Expert Could be Outsourced

Operational Executor Executor Operational Could be Outsourced

Contact may be directed via: • email to [email protected] • Telp/Fax : +62222504 189

TERIMA KASIH Thank You

Wass. Wr. Wb


mailto:[email protected]






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