Transcript Aktau presentaion Rusx

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relation to it.
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Working together to develop and Internationally
Competitive Supply Chain
Aktau, 25 September 2012
Success story –
The UK North Sea Industry
Supply Chain
• Forty years of exploration and development of the
UK’s oil and gas reserves has created a world
class competitive supply chain
• Annual turnover ~£16 billion
• 450,000 jobs throughout the UK are supported by
UKCS activity and the export of oil and gas related
goods and services:
• Contributes £5-6 billion per year in corporate and
payroll taxes and national insurance.
• UK exports of oil-related goods and services up
from £2 billion in year 2000 to more than £7 billion
a year
• Main markets are Africa, Europe, North America
and Australasia
Source: Oil & Gas UK
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Supply Chain Challenges
• Demand planning and lack of
transparency
– What projects or jobs are coming up, how do
I plan/invest
• Lack of data on the supply chain
– Who, capability and performance
– Local and international companies (JV
potential, technology transfer)
– Need performance feedback for
improvement
• Inefficiency and unnecessary cost in
tendering and contracting
– Duplication, repetitive pre-qualification and
RFI, non-standard contract form
• Payment !
– Late payment, lack of support for SMEs
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Best Practice in Collaboration UK
Supply Chain Code of Practice
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Best Practice in supply chain
development
Sharing Supply chain data
www.fpal.com
UK industry
supplier database
+ 3000 suppliers
Registration
Assessment
Capability Profile
Verification
Performance
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A Kazakhstan Supply Chain
Code of Practice?
Benefits:
• Develop Local Content and competitiveness in Kazakhstan
• Encourage SME development and the modernisation of enterprises
• Identify and correct inefficiencies in the tendering process
• Improve performance by adoption of industry best practice
• Promote engagement and collaboration in the supply chain
• Increase overall transparency
Content to be developed by stakeholder collaboration across the industry
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DRAFT Kazakhstan Supply
Chain Code of Practice
The code applies to three key stages in the commercial process:
1.
Plan - transparent planning of contracting activity by major purchasers to improve
supply chain capability
2.
Contract - streamline pre-qualification, tendering and negotiation processes to increase
competitiveness and add value
3.
Perform and Pay - increase performance feedback dialogue and shorten payment
cycles to improve performance
Definitions
• Purchaser: All companies in the supply chain who procure goods and services, including
1st tier Operators, their contractors and sub contractors
• Supplier: All providers of goods and services in the supply chain
• SME: Small and Medium Enterprises. A small enterprise has less than 50 employees and a
turnover of up to Euro 10m (equivalent) per annum. Refer to EU definitions at
http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/smedefinition/index_en.htm
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Best Practice in Collaboration
Supply Chain Code of Practice
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The Kazakhstan Supply
Chain Code of Practice
1. Plan - transparent planning of contracting activity by major purchasers
to improve supply chain capability and local content
Purchasers
• Share forward work plans with the industry,
though company websites, industry forums and
official reporting formats. Include types of
activity, expected contract value bands and
timing.
• Debrief unsuccessful suppliers within 30
days of pre-qualification evaluation,
indicating areas for improvement.
• Publicise a list of internal contacts to facilitate
discussion around future work plans.
Suppliers
• Use FPK - First Point Kazakhstan joint industry
database - to identify and assess local suppliers
of Goods, Works and Services.
• Review purchaser plans. Attend industry
events such as purchaser forums in order to
understand future requirements.
• Give full and fair opportunity to local
suppliers; extend pre-qualification lists through
market research and use of FPK.
• Use FPK - First Point Kazakhstan joint
industry database - to provide up-to-date
information on own capabilities. Review and
update regularly. Use own FPK record in
marketing .
• Simplify pre-qualification for low-risk contracts.
Provide opportunities for clarification. Avoid use
of inappropriate exclusion criteria.
• Apply the Unified Methodology to own
suppliers for calculating and reporting Local
Content .
• Apply the Unified Methodology for calculating
Local Content.
• Participate in debriefing sessions. Apply
lessons learned for capability improvement.
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2. Contract – streamline tendering and
negotiation processes
to increase competitiveness and add value
Purchasers
• Conduct all significant Tendering activity in
Kazakhstan.
• Use Tenders lists of local companies where
enough local companies are able to pre-qualify.
Promote and assist supplier development where good
potential is assessed.
• Encourage Local content through weighted bid
evaluation.
• Simplify the tendering process and Terms &
Conditions for low value and low risk contracts.
• Avoid requesting financial guarantees &
insurance unless there is significant contractual risk..
• Only set appropriate Quality Standards. Use local
standards where feasible.
• Invite alternative proposals in order to encourage
innovation & new technologies
• Provide appropriate debriefing for all bids.
Suppliers
• Avoid inappropriate or repetitive questions in prequalification and tender; questions already answered
in FPK will not be repeated.
• Seek to develop local sub contractors and
consortia through the contract.
• Promote local sub-contractors and formation of
local consortia through tenders and contracts.
• Propose realistic local content targets and work
with the Purchaser to further develop local content
through the contract with periodic review.
• Set Local Content Targets in contracts according to
own assessment of market capability. Targets should
be contract specific.
• Adhere to Purchaser’s HS&E standards, business
principles and requirements for business ethics &
conduct. Demonstrate compliance.
• Incentivise local content improvement in
contracts. Contractual Penalties relating to local
content targets should not be applied where suppliers
can demonstrate best endeavours to increase local
content.
• Provide alternative proposals for innovation & new
technologies where feasible.
• Consider advance stage payments terms for
SMEs where this has good potential to develop local
content.
• Keep FPK record up-to-date, with full assessment
and capability profile where required by Purchasers.
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The Kazakhstan Supply
Chain Code of Practice
3. Perform and Pay – increase performance feedback dialogue
and shorten payment cycles to improve performance
Purchasers
Suppliers
• Include performance indicators in all
significant contracts with an appropriate
review programme for the life of the
contracts
• Track and discuss key contract
performance indicators.
• Hold structured dialogue on
performance, with feedback at
appropriate stages during the contract.
Seek to improve mutual performance,
minimise waste learn from mistakes and
apply best practice.
• Review local content targets with
suppliers.
• Pay all valid invoices within 30 days.
• Request performance feedback with
Purchaser, including assessment of
Purchaser’s performance.
• Submit complete and valid invoices
with supporting documentation in
accordance with contract obligation.
• Adopt a prompt payment policy for
own suppliers.
• Provide advance stage payments to
own subcontractor SMEs where this will
develop local content.
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The Kazakhstan Supply
Chain Code of Practice
The code is voluntary and its signatories commit to work towards full compliance with the
code. It is designed to help the signatories achieve the highest standards of business ethics,
health, safety and environmental operations in accordance with all relevant local, national and
international statutory requirements.
Go beyond regulations - Promote industry collaboration
Joint branding with logos of operating companies, major contractors, trade
associations, regulators etc.
Commitment to the Code
On behalf of
_________________________________(company)
Name
(1)_________________
(2)_________________
Position
CEO / President / MD
Supply Chain Manager
Signed
____________________
____________________
Date
____________________
____________________
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Best Practice in Collaboration UK
Supply Chain Code of Practice
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International Best Practice
Improving Supplier Capability
and Performance
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Best Practice transferring to
Kazakhstan
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Working together in Kazakhstan
to develop an Internationally
Competitive Supply Chain
Open competitive environment & Best Practice
Inward investment – Employment - Technology and Capability transfer
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