Boston Strategies International

Oil, Gas & Power Generation Supply Chain Leadership

Global and Local Partner Development
Fast-growing energy demand requires buyers and developers in emerging economies to establish extensive supply chains in order to meet government investment and growth goals during the current and projected energy boom. However, they often face insufficient local skills and quality to do the job in-country. BSI's "Shortlist" solution accelerates local content development by forming supplier relationships that achieve global quality and technology leadership and also meet local content requirements in countries such as Bahrain, Brazil, China, India, Indonesia, Nigeria, Qatar, Russia, and Saudi Arabia, to name a few.

BSI offers two programs to support their growth:
1."Short List" Partner Capability Assessment and Development Service
2. Supply Chain Excellence Evaluation and Recognition
"Short List" Partner Capability Assessment and Development Service
The accelerating pace of globalization has led to an unprecedented opportunity for highly qualified engineered equipment suppliers, industrial companies, and specialist service providers worldwide to win new business with oil companies, electric utilities, wind energy companies, and the tender boards and foreign investment agencies that are funding capital expansion projects in emerging economies.

To facilitate the matching, BSI offers a partner qualification service called Short List, which offers the following services:
  • Strategy Refinement
  • Advice on Competitive Positioning and RFP or Sales Documents
  • Enhanced Visibility through OGP Network
  • Introductions to Potential Target Partners
  • Contract Negotiations Support

Supply Chain Excellence Evaluation and Recognition
Each year our firm conducts an in-depth global supply chain benchmark study in which diverse companies respond from countries as widespread as Australia, Fiji, Germany, India, Italy, Nigeria, Norway, South Africa, and the United States. Winners are evaluated based on their demonstrated supply chain processes and performance on four Dimensions: Cost Leadership, Reliability, Customization, and Innovation as described in The Guide to Supply Chain Management, by The Economist).

Recent award winners include:
  • GE Oil & Gas   (USA). GE won the award based on its success in offering oilfield solutions that increase electrical efficiency and system reliability. 
  • Motiva  (USA). Motiva Enterprises LLC won the award based on its success in building an industry-leading bio-fuel (ethanol) distribution network.
  • Freudenberg Oil & Gas  (USA). Freudenberg won for its emergency overhaul of dry gas seals for Agip KCO, operator of the Kashagan project, by rapidly deploying engineers, tools, and parts from EagleBurgmann in Russia to avoid international shipping and customs complications and delays that would have incurred if Freudenberg had shipped the units to Germany.
  • Shell (Netherlands). Shell won based on its high-performing standardization program, which allowed it to reduce purchase prices by 30% for valves, cut variety by 50%, through use of its extensive Materials and Equipment Standards and Code (MESC) catalog.
  • Chevron (USA). Chevron Corporation (USA) won for effectively extending its internal Lean Six Sigma techniques to its suppliers.
  • Baker Hughes (USA). Baker Hughes won based on its supply chain transformation strategy and year-one achievements: the group has publicly declared $100m in volume adjusted cost reduction per year for the next three years.
  • Qatar Fuel (Qatar). Qatar Fuel won the Overall Supply Chain Excellence award based on its superior stock accuracy, delivery responsiveness and cycle time, uptime, manufacturing yield, return on net assets, and cost per order .
  • Bharat Petroleum Corporation Limited (India). Bharat Petroleum won the Supply Chain Synchronization award based on its superior Order Accuracy, Inventory Management, and Asset Productivity.
  • FMC Kongsberg Subsea (Norway). FMC won the Supply Chain Synchronization award based on its superior Supplier Management, Order Fulfillment Reliability, and Overall Asset Productivity.
In 2009 the winners received their awards at the luxurious five-star Dusit Thani Hotel in Dubai. Click here to see pictures of the Awards Ceremony. 

The 2012 awards are focused on Oil and Gas. There are three categories: Oil Company, Equipment Provider, and Service Provider. The scope includes both offshore and onshore operations.

  • Oil Company includes: Upstream (Exploration For Crude Oil and Natural Gas; Drilling, Completing, and Equipping Wells; and Processing such as Separation, Emulsion Breaking, Desilting, and Field Petroleum Gathering, including Shale Plays and Oil Sands); Midstream (Storage, Transloading, Pipeline, and Tanker Operation); and Downstream (Production Of Gasoline, Kerosene, Diesel and Other Distillate Fuel Oils, Residual Fuel Oils, and Lubricants).
  • Equipment Provider includes: Drilling Equipment, Piping, Valves, Vessel and Internals, Pumps, Compressors, Mixers and Agitators, Drivers, Heat Exchangers, Instrumentation, Electrical Equipment, Furnace and Boiler Tubes, Insulation and Refractories, Paints and Coatings, Materials Handling, Tools, and related equipment.
  • Service Provider includes: Bulk Storage, Transloading, Pipeline Operation, Vessel Chartering, Offshore and Onshore Construction & Installation, Seismic Services, Offshore and Onshore Rig Operation, Drilling and Directional Drilling, Pressure Pumping and Cementing, Well Fracturing & Stimulation, Fluid Services, Marine Services, Inspection, Testing, Compression Services, and related services.

If you have any questions, please feel free to contact David Jacoby at djacoby@bostonstrategies.com or +1 (781) 283-5788.

Case Study
  • Industry: Specialty Mineral Processing
  • Key Challenge: Client needed world-class cost and quality, combined with regional and local field service support: a solution involving multiple partners.
  • Why BSI was Selected: Experience with supplier integration
  • Project Scope: Four operating companies in the US
  • Project Approach: Supplier rating and qualification, value engineering, standardization of specifications, bidding and negotiation, inventory rationalization, system integration
  • Operational Benefits: New sources of minerals and chemicals, more reliable shipping times.
  • Financial Benefits: Reduced cost by 8%


Click here to read the full case study on Global and Local Partner Development.
Featured BSI Articles on Global and Local Partner Development
Petroleum Pride

LOGae Magazine reports on Boston Strategies International's 2010 Oil and Gas Supply Chain Awards.

Click here to download a copy of the article.

Good Better Best

In everything we do we try hard to achieve excellence, and we are usually quite proud of our results. Yet no matter how much we work at something, our first attempt is usually only "good." If we try harder, longer, and smarter, we can usually do "better." Once in awhile, if we try as hard as we can and show great patience and respect for our subject, we can achieve "best." This same story applies to our jobs in supply chain management.

Click here for free download.

Supplier Development: More Than a Good Idea

Sometimes suppliers have solutions that exceed the needs of most of their customers, and all the buyer needs to do is sign on the dotted line. Often, however, buyers' needs are more advanced than the supply market or buyers have more customized needs than available solutions can satisfy. In these cases, buyers must develop suppliers and their solutions to meet their requirements. Boston Strategies International's annual supply chain awards help to identify and acknowledge excellent supplier performance and outstanding examples of collaboration between buyers and suppliers.

Please click here to learn why supplier development is an essential skill for all procurement professionals.


Aligning Goals for Supply Chain Success

Superlative supply chain performance is directly tied to the alignment of goals and objectives up and down the value chain. The tighter the linkage, the more performance the supply chain delivers. Knowing the key leverage points and what targets to set is critical to long-term success.

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Focusing on the Right Suppliers

Companies have been consolidating their supplier base for more than 15 years. But, if you think they're done tightening that core group, guess again. Some have chosen that emphasis in order to leverage the purchasing power of multiple new acquisitions; others are using it to restore or increase profitability to acceptable levels following the recent recessionary period. Regardless of the cause, the trend is hard to ignore.

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