Boston Strategies International

Oil, Gas & Power Generation Supply Chain Leadership

Supply Risk Mitigation




Supply managers make assumptions about the future of supply markets every time they contract with suppliers, or choose not to. Understanding the outlook for key variables of a supply market such as lead time, capacity, price, and market competitiveness is critical to deciding the right price and contract term, yet few companies have a market intelligence process or reliable data. Even fewer agree on the right way to use this information if it exists. Boston Strategies International's supply market analyses highlight:

  • Quarterly and yearly projections of demand, capacity, lead times, and prices
  • Five year outlooks
  • Coverage of suppliers in markets such as China, India, and Eastern Europe

BSI's "cloud-based" hosted application, which is tailored to your externally purchased categories, product and service specifications, and geographies, provides valuable recommendations and allows market intelligence analysts and commodity managers to spend their time negotiating strategic supplier framework agreements. While most internal market intelligence groups manually assemble, integrate, analyze, and disseminate information, our hosted application reduces the workload of these precious resources.

"Market Navigator" Custom Market Intelligence Portal
Suppliers, Prices and Forecasts

BSI’s "private-label" supply market intelligence portal provides access to the company’s library of research reports, and easy drill-down access to thousands of charts, tables, and graphs. The "Suppliers" section contains profiles of suppliers in every corner of the world, as well as historical and forecast price indices for hundreds of specialized purchased materials and services.


Analysis and News


BSI’s continuous stream of articles, news, and analyses, married with procurement decision tools, improves the accuracy and the timeliness of strategic sourcing decisions. The content is updated continuously with new research, supplier profiles, and benchmarks. A configurable databank allows real-time downloads of market data and forecasts, Online decision tools improve the consistency and accuracy of important decisions by helping with commodity-specific cost inflation calculators, supplier qualification tools, supplier audit templates, lifecycle cost calculators, contract Term optimizers, and hedging and options evaluators.


Benchmarking
Interaction with peers who have successfully implemented supply chain improvements, accelerates the realization of the full potential of market intelligence and strategic supply chain management. Connect with peers on topics of interest and importance.



 

Mill Rolls Supply Market Indicators


Order Leadtime:_2008: 8.2%__2010: -17.0%__2012: -62.6% __ Prices:_2008: -4.8%__2010: 2.8%__2012: 2.3% __ Capacity Utilization:_2008: -5.0%__2010: -17.7%__2012: -5.6% __ Supplier Concentration:_2008: Low 0.3%__2010: Low 2.2%__2012: Med 4.7% __ Suppliers: Akers, Sidenor/Aços Villares, Novo-Kramatorsky Mashinostroitelny Zavod, Union Electric/Davy, Whemco...

Fastest Growing Process Industries, Last 12 Months

Ranking Industry Region Direction Range
1 Steel Americas Δ 50-70%
2 Mining Asia Δ 35-55%
3 Basic Metals Asia Δ 30-50%
4 Synthetic Resins Asia Δ 30-40%
5 Chemicals Asia Δ 30-40%

The "Navigator" Market Insight portal contains detailed data and specific, timely procurement recommendations on many purchased materials and services, including these for example:
  • Acids
  • Air Compressors
  • Bearings
  • Blow-Out Preventers
  • Cable
  • Catalysts
  • Centrifugal - ANSI Pumps
  • Centrifugal - Engineered Pumps
  • Chemicals
  • Coal
  • Compressors
  • Contract Mfg
  • Couplings
  • Crude Petroleum
  • Design & Testing
  • Detection Systems
  • Distribution & Wholesaling
  • Downhole Tools
  • Drillbits
  • Drilling
  • Drilling Fluids
  • Electric Motors
  • Electrical
  • Electronics
  • Energy Distribution & Utilities
  • Field Separation Systems
  • Filtration Equipment
  • Fire Suppression Equipment
  • Flow Meters

  • Gas Turbines
  • Gears
  • Generators
  • Hardware
  • Heat Transfer
  • Hydraulic Systems
  • Industrial Batteries
  • Industrial Gases
  • Instrumentation
  • Intrusion Security Systems
  • Iron & Steel
  • Lamps & Fixtures
  • Logistics
  • Lubricants & Base Oils
  • Maintenance & Repair
  • Membranes and Membrane Systems
  • Metals
  • Microturbines
  • Mill Rolls
  • Minerals & Mining
  • MRO
  • Natural Gas
  • Oil & Gas Production Chemicals
  • Ores
  • Paper & Packaging
  • Parts & Equipment
  • Pipe Fittings
  • Pipeline Drones

  • Plastics
  • Positive Displacement Pumps
  • Power Transmission
  • Printing & Publishing
  • Process Centrifugal Compressors
  • Process Reciprocating Compressors
  • Professional Services
  • Pumps
  • Respirators
  • Rubber
  • Scrap Metal
  • Seals
  • Spill Control Systems
  • Steam Turbines
  • Submersible Pumps
  • Surface Equipment
  • Switchgear
  • Transformers
  • Transportation
  • Tubulars
  • Turbine Parts & Service
  • Turbines
  • Uninterruptible Power Systems
  • Vacuum Pumps
  • Valves
  • Vessels
  • Water Filtration Media

Market Outlook Surveys
If you are interested in the business outlook for any of the categories below, please take our brief surveys in exchange for a summary outlook and forecast.

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Case Studies
  • Industry: Oil and gas
  • Key Challenge: Supplier price increases cost inflation, long lead times, production shortfalls
  • Why BSI was Selected: Thought leadership in supply risk mitigation, forecasting track record.
  • Project Scope: 50 sourced categories in 10 commodity groups, complex engineered equipment
  • Project Approach: Economic modeling, market intelligence, optimization analysis
  • Operational Benefits: Quicker delivery of equipment, lower lead time, updated technologies
  • Financial Benefits: 30%+ higher profit, 5%+ lower upfront cost,  lower inventory cost, lower operating cost


Click here to read the full case study on Supply Risk Mitigation for an oil and gas company.




  • Industry: Chemicals
  • Key Challenge: Shortage of material caused by regulatory and tax policies
  • Why BSI was Selected: International industrial materials supply chain expertise
  • Project Scope: Sourcing of selected rare earths
  • Project Approach: Screened suppliers, international distributors, importers and partners; evaluated alternatives; and developed a plan to use alternative sources.
  • Operational Benefits: Immediate supply assurance through the use of a highly qualified backup supplier; long-term price stability through development of two other strategic suppliers.
  • Financial Benefits: Sustained production and profit from ongoing business while increasing purchasing leverage. Consulting payback of 25 to 1.


Click here to read the full case study on Supply Risk Analysis and Mitigation for a chemicals company.




  • Industry: Wind Power
  • Key Challenge: Rapidly changing technologies, suppliers and economics.
  • Why BSI was Selected: Deep experience in exploration and production project management
  • Project Scope: Wind turbines, foundations, electricals, and installation.
  • Project Approach: Master supply chain planning, category sourcing strategies, financial modeling.
  • Operational Benefits: Identification of bottlenecks and plans to mitigate them.
  • Financial Benefits: 13% reduction in projected capital and operating expenses.

Click here to read the full case study.


Featured BSI Articles on Supply Risk Mitigation
Click on the image to expand.
Supply Chain Risk Jumps 8%
Are you prepared for a multi-pronged supply interruption? Have your supply chain operations been affected by the uprising in the Middle East? The earthquake in Japan? The unavailability of rare earth from China? They have, whether you know it or not.

To read our article on “Supply Chain Implications of Unrest in the Arab World,” click here.



Swagging the Biggest Decisions You Make

Sourcing is getting more strategic as buyer and supplier industries consolidate, leaving fewer players on either side. On the buy side, mergers and acquisitions have reduced the number of buying organizations and buyer lean management practices have reduced the number of key suppliers they deal with. On the supply side, many suppliers are refocusing on more profitable customers to keep margins up and some are exiting unprofitable businesses and shedding unprofitable customers. The result: fewer buyers are doing business with fewer suppliers. Is this a risk or an opportunity, and how should it change the way you do business?
© 2005 Boston Strategies International (formerly Boston Logistics Group)

Click here to download the article.




Mitigating High Raw Material Prices

Raw material price volatility has hit manufacturing companies hard in recent years. Prices of metals, wood products, paper, packaging, and fuel—just to name a few commodity-based raw materials—have all increased markedly and been more volatile than in the past. Read this article for three tips that will help you reduce the cost and risk of raw material price increases.
© 2005 Boston Strategies International (formerly Boston Logistics Group)

Click here to download the article.




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