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Improving supply chains decision making

Keeping complex supply chains under control
Tone Bengtson
» General Manager
» Buy Logic
Christoph Lenhartz
» General Manager Europe, Middle East and Africa
» Pinnacle Strategies

Wednesday, February 27, 2013
Norwegian Petroleum Museum

I would like to invite you to register for our free Digital Energy Journal forum in Stavanger on February 27th will look at ways to optimise supply chains, including new ways to analyse your data, improving purchasing of offshore consumables, what to do when performance is not as good as expected, how to take a more systematic approach, and how to introduce a more structured professional development program for supply chain experts.

Do you think it is possible to get your supply chains under better control, so you can leave the office on time every day and help your company improve performance?

There is no admission charge to attend this event, which is held at the Norwegian Petroleum Museum. Limited places, please register now to reserve yours!


8:30 welcome coffee
9:10 Karl Jeffery - Editor
Digital Energy Journal
Chairman's introduction

Karl Jeffery is editor of Digital Energy Journal and managing director of Future Energy Publishing, which also publishes Tanker Operator magazine and Carbon Capture Journal. He was previously co-founder and editor of Digital Ship Ltd, a publishing company focussing on IT in the shipping sector. He has a BEng in chemical engineering from Nottingham University

Digital Energy Journal
Founded in 2006, Digital Energy Journal is the world's leading magazine for digital technology in the upstream oil and gas industry, covering developments in exploration, drilling and production, covering IT infrastructure, software, automation and people. We produce 6 issues per year, distributed by print and pdf, and an e-mail newsletter every Friday
9:15 Don Valentine - Operation Director
Supply chain analytics – delivering business value through data-driven insights

Talk Description.
Did you know that only 20% of senior managers feel they have access to adequate information on which to base business decisions?

Technological developments and the advances of globalisation create unparalleled opportunities for oil and gas businesses to expand their markets but new opportunity has opened the door to new challenges in managing the extended supply chain associated with this growth. Your business may be awash with data but accessing this and bringing it together in a cohesive format might be easier said than done. One of the key questions facing supply chain managers is how to achieve transparency in the extended supply chain and provide the right information to the right people to support them in making good decisions, which deliver value to the business,.

Find out how Business Analytics tools can support flexible, user-friendly interrogation of data to assist decision-makers in supply chain areas such as sourcing, inventory management, quality and logistics.
Don Valentine is Operations Director at Absoft and head of the company’s Oil & Gas business division. Don has been working in IT within the oil and gas sector for over 20 years and is a specialist in supply chain solution architecture.

Absoft is the leading independent provider of SAP consultancy services and solutions to the upstream Oil and Gas sector in the North Sea and is a SAP partner. Established in 1991 in Aberdeen, we have been delivering business solutions of enduring value to our customers for more than 20 years through the application of technical expertise, best practice and innovation.

To meet demand from operators and oilfield service companies for integrated business solutions that improve operational efficiency and reduce costs Absoft has developed solutions based on SAP best practice. These build on the experience of thousands of successful SAP implementations and incorporate Absoft's in-depth knowledge of oil and gas industry processes. The solutions can be implemented on a module-by -module basis with reduced implementation timescales and costs.

Absoft also offers a complete range of SAP consultancy services, which help companies using SAP to get the most from their software investment, including: implementations, support, process improvements, training, licensing and strategic advice. Our customer base comprises a range of upstream oil and gas companies, from smaller independent operators through to integrated oil and gas majors.
9:45 Tone Bengtson - General Manager
Buy Logic
Improving purchasing of consumables for offshore

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Talk Description.
- Do we give enough attention to our consumables purposes going offshore? Is there room for savings from better purchasing?

- Ways to reduce transaction costs for high volume, low item value purchases

- Alternative procurement models
Buylogic is an independent center of competence which delivers Supply Chain Management to the Oil and Gas Industry, and has been in the buisness since 2006.

Our goal is to maximize value creation through coordinating all activities related to purchasing, contract management and logistics. The field called «Supply Chain Management» is an instrument that gives a company competitive advantages. These would include more satisfied customers, more effective strategic focus and an improved bottom line.
Our focus is in developing optimal processes to meet the demands from supplier to end user.

We can offer our customers services like Supply House, where Buylogic takes over the responsibility of the whole, or part of the Procurement Process, as well as advising and consulting services. We can work either at the customers'location, or supply from our own offices for the task. We have experience from all of the most recognized eneterprise planning (ERP) systems.

We have high qualified employees, all of them are permanently employed at Buylogic. Our competence is based on relevant education, experience, relational skills, analytic skills, process thinking and the understanding of customers needs. Our employees range from junior to senior and advising level. We are flexible , honest and deliver quality in acconrdance to ISO - standard.
10:15 Svein-Egil Hoberg - Director, strategy and operations
KPMG Advisory
Differences and inconsistencies in supply chains – how to identify, analyze and develop….

View PDF   
Talk Description.
The providers of oilfield products, systems and services are characterized by large and complex deliveries. Experiences are often described with examples of
- Differences between technical and financial progress
- Differences between planned and actual progress
- Differences between the budget/calculated and actual cost
- etc
The presentation focuses on the challenges in the complex value chains from design, engineering, fabrication, procurement and to the management of suppliers.
A systematical review of KPIs, processes, involvement, collaboration etc is the basis for improving supply chain efficiency.
Mr Hoberg has a long experience on Supply Chain and Procurement, both at a senior level and as a lecturer. He has also a broad experience from industry, trade, academia and consultancy, both in general management and in his specialty area, Supply Chain Management, Business Logistics and Procurement.

Previous roles include:

• Partner, DHT Corporate Services AS
• Managing Director,Storsand Utvikling AS
• Company Director, BAMA Gruppen AS
• Vice President, Norsk Hydro ASA
• Managing Director, IKO Logistikk As
• Associate Professor, Norwegian School of Management BI

Svein-Egil Hoberg has a Master Business and Administration, BI Norwegian School of Management and a Master of Arts in Management, Henley Business School, UK

KPMG Advisory
KPMG Norway is the third largest provider of audit, tax and advisory services in Norway. KPMG Norway is a full service firm with over 1000 partners and staff.
10:45 Break
11:15 Christoph Lenhartz - General Manager Europe, Middle East and Africa
Pinnacle Strategies
Decision making for high performance - demand-pull supply chain management

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Talk Description.
Often, companies find their Supply Chain Management (SCM) investments are not yielding the expected benefits and that the performance of their supply chain is low. Decisions often focus on efficiency only instead of ensuring reliability.

Technology is transaction-driven and does not support proper decision making to do the right things at the right time. SCM design and decision making is delegated instead of making it a top management priority: Successful supply chains are customer-centric and built around the value proposition of the business. Such integration must be driven by the senior leadership.

A Systems Approach to Supply Chain Management

The key to better decision making in SCM and to improve supply chain performance is to treat the supply chain as a system, where efficiency is a by-product of system performance. Priorities for supply chain improvement must be:

1. Improve reliability
2. Improve return on investment
3. Reduce operating costs

A reliable supply chain will not generate excessive investment. In fact, excessive amounts of inventory are a primary indicator of an unreliable process. High inventories and operating costs are often the result of decisions that were taken to resolve synchronization errors. These are the symptoms of poor performance, not the cause.

Decisions to improve supply chain performance must address the root causes; not the symptoms. Smart process design that integrates our understanding of human behavior and process variation can create a pull system for the entire supply chain. In such a system inventories and costs are minimized and reliability maximized.

Demand-Pull Supply Chain Management

With a push-based supply chain, products are pushed through the channel, from the supplier to production through to the distribution organization to the end user. In such a system, decisions making relies on forecasts. Forecasts are always wrong as nobody can exactly predict the future and backwards-looking, assumptions, and “best guesses” are used to develop the forecast. When the market doesn’t react as it has in the past, it takes some time for the push-based supply chain to respond to changes in demand, which results in overstocking or bottlenecks and delays (the bullwhip effect), unacceptable service levels and product obsolescence.

In a pull-based supply chain, procurement, production and distribution are demand-driven so that all decision making is based on actual customer or end-user orders, rather than forecast demand.
The pull demand system controls inventory investment, thus stabilizing supply chain performance, allowing supply chain managers to make rational tradeoffs and decisions regarding supply chain variables and performance.

Christoph Lenhartz is General Manager Europe, Middle East and Africa (EMEA) for Pinnacle Strategies. He oversees all EMEA business operations, including business development, resource management, and project delivery. In addition to running Pinnacle's Norway and Germany offices, he is spearheading expansion of the company's EMEA efforts. He leads a team of international experts who assist Pinnacle's clients in making substantial and sustainable improvements in operations and performance.

Mr. Lenhartz joined Pinnacle Strategies in 2012 from VISTEM where, as Chief Operations Officer, he was responsible for all aspects of project delivery. He has more than 20 years of industry and consulting experience helping clients including Deutsche Post, DHL, General Motors, Swisscom, and Hewlett-Packard significantly improve their bottom lines. As part of this he developed Business System Optimization, a method to improve organizational processes, policies, and structure to achieve strategic corporate objectives including expanded market share, market leadership, and profitability. His expertise also includes post-merger integration of supply chain operations for major international groups.

He serves on the boards of TOCICO, the Theory of Constraints International Certification Organization (Chairman 2012/2013) and the Eliyahu M. Goldratt Foundation.

Mr. Lenhartz is a sought-after speaker on business and operations strategies and has written numerous articles on subjects such as profitable growth strategies, project management, continuous improvement, business and performance management.

He holds a graduate degree in Business Administration from the University of Essen in Germany and a MBA from Clemson University (USA). He has also pursued Engineering Management studies at Washington State University (USA). He is a member of APICS (Association for Operations Management) and the German Federal Association of Economists and Business Managers

Pinnacle Strategies
Pinnacle Strategies is an international management consulting firm focused on operations management excellence. We work with organizations to increase shareholder value by developing high-performance business processes that significantly enhance productivity, reduce costs and time to market, improving profitability and accelerating sustainable growth.
11:45 Phil Broughton - Head of energy and Oil & Gas sectors
Professionalising supply chain management in the oil and gas industry

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The Chartered Institute of Purchasing & Supply (CIPS) is the world's largest procurement and supply professional organisation, with 88,000 members. It has developed a program for Aberdeen oil and gas supply chain professionals, to "support the development of professionalism in procurement and supply chain management."

The training covers supply base analysis, risk management, negotiation skills, customer and client management, contract management, contract selection and legal, procurement process management, finance for procurement and supply chain analysis.

The first group of students have already been given certificates, including employees from Prosafe Offshore Ltd, Total E&P UK, Marathon Oil, KCA Deutag, Apache Oil and Wood group PSN.
12:15 Multiple -
Panel Discussion
Panel discussion - improving supply chains decision making -

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Used for panel discussions

Panel Discussion
This is part of our agenda where Finding Petroleum has a panel discussion.
12:45 Lunch
14:00 Close
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