Harbour Energy

SECTOR

REGION

PRODUCT/SERVICE

MANUFACTURING

GLOBAL

TECHNOLOGY

Harbour Workers
Ship Workers

WHAT HARBOUR ENERGY ACHIEVED

Effecting a step change in how to manage key suppliers to produce collaborative value creating relationships.

Harbour Energy had a requirement to up-skill the people managing their most important supplier relationships and help and support them to deliver measurable value and other benefits through a development programme.

The Business Challenge

> Harbour Energy is outsourced to a large degree (> 70%).

> Important industry knowledge and expertise resides within their key supplier relationships (along with the know-how on how to ‘do it’ better). How do they access this?

> A key differentiator and value creator for Harbour Energy going forwards will be in how they manage their most important contracts and the supplier relationships that are behind them.

> Provide consistency in the way suppliers are managed across the key business units in Aberdeen (UK), Jakarta (Indonesia) and Hoh Chi Minh City (Vietnam).

> Additionally, the knowledge gained from running this programme and developing value with Tier 1 suppliers will automatically drive benefits in also efficiently managing their Tier 2 and 3 suppliers.

Benefits Delivered

  • Implementing a structured training programme globally across all three business units.
  • It was not a traditional training approach. It was a series of workshops, on-the-job activities and support coaching interventions where we facilitated and enabled Harbour Energy’s people to deliver demonstrable value in (and with) the suppliers that they are managing. Most importantly, this was done using live key-supplier relationships.
  • The resulting programme that was delivered was not oil & gas sector specific. Rather we brought to the table the full range of best practices that we have collected across a range of industries and sectors to give the teams the insights and learning that the leading SRM companies use to generate customer of choice benefits through their most important suppliers.

  • The programme delivered took a holistic approach and equipped students with a full lifecycle view of a supplier relationship and the associated framework agreement, contract(s) and governance activities to ensure the full contracted value is protected and enhanced.
  • To deliver this training, contract management (both managing the contract as an entity as well as ‘managing to the contract’), risk management, performance management and relationship management will be the core themes.
  • Behavioural skills were also important, so we also equipped students with practical techniques to manage stakeholders (internal and suppliers), build trust and use influence without authority.

The Approach

In-depth Questionnaires:
  • 160 suppliers invited to complete the survey.
  • Benchmarked suppliers against industry peers to create analysis of results / perceptions compared to best-practice.

Virtual or Face to Face interviews:

  • 20 suppliers invited to complete 60 minute telephone interviews.

Key Focus:

  • perception on payment terms with a comparison across different lines of business.

Extract

"It is clear that companies that implement well-structured supplier management programmes gain access to a range of ‘customer of choice’ benefits that include greater supplier commitment, collaborative problem solving, preferential pricing and priority access to people, resources and capacity."

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