| Details: | The oil and gas industry is set to launch a major cost-saving initiative to simplify the process of offering and accepting bids for work, between purchasers and suppliers. The new method, known as a "Model ITT" (Invitation to Tender) will be unveiled at the official launch of the new Supply Chain Code of Practice which takes place on 31st January 2006.
The guideline document provides a standard layout for suppliers to follow when structuring their response to a buyers request for services and/or equipment. The major benefits for those who follow the Model ITT framework include reduced costs, which can be in the region of £25,000 to £50,000 per bid, and time saved by eliminating duplicated information.
The Model ITT is one of a set of products that have been developed under the new Supply Chain Code of Practice. The Code itself is a set of best practice guidelines, which has emerged from joint efforts by industry to standardise and simplify commercial arrangements between companies. It was originally established in 2002 and has been revised and updated since then, building on its initial successes, which include the popular annual "Share Fair" events that have helped make companies' buying plans more visible to potential suppliers. It has also brought about 30-day payment guarantees and increased the use of FPAL (First Point Assessment Ltd), the industry's revolutionary central "library" of shared information on supplier and purchaser details and credentials.
Alistair McGregor, Chair of the Supply Chain Management Network, led the team of representatives from a cross-section of the industry's operators, contractors, SMEs and trade associations which identified that responding to the many different forms of ITT issued by purchasers was a source of significant waste. He says: 'After looking at the tendering practices in the drilling sector, we developed a simple, standard method for preparing, issuing and responding to ITTs to reduce the effort required and, in doing so, make negotiations easier, faster and cheaper for all concerned.' He added: 'We hope to roll out Model ITTs for the well services, marine and facilities management sectors over the course of the year. Anyone using these will find themselves in the enviable position of driving out the twin evils of unnecessary cost and time and replacing them with value and quality.'
Dave Blackwood, Director for BP's North Sea business, will join Alistair McGregor and Chris Strang of WSCA (Well Services Contractors Association), as a key speaker, and will advise attendees on how their business can benefit from utilising the new guidelines. He says: 'The Supply Chain Code of Practice and initiatives which stem from it, such as the Model ITTs, are the first of their kind to be developed for the oil and gas industry and a great example of the industry pulling together to drive real improvements in the way we do business. If we embrace these guidelines we can save time and money and give contractors and SMEs the opportunity to create imaginative solutions to the challenges we currently face in the North Sea.'
The event itself presents a substantial networking opportunity with a host of other key industry figures attending, including Tom Smith, Managing Director of NesscoInvsat Telecommunications, John Crum, Managing Director of Apache North Sea Ltd, and Mark Hughes, Managing Director of Gaz De France. A number of contracting personnel from a range of operators, contractors and SMEs have also registered to join the celebrations from companies including Subsea 7, AMEC, Imes Ltd, Stena Drilling, Aker Kvaerner, FPAL, Abbot Group, Shell, Mo & Co UK Ltd, Schlumberger, BG Group, Total, Technip, ExxonMobil, Labtech Modular Engineering, Talisman, ConocoPhillips, Petrofac, Craig Group, RWE Dea, Universal Sodhexo, Chevron, Caledyne Ltd, Expro Group and Trinity International Services.
The reception takes place on Tuesday 31st January 2006 at the Trinity Hall on Holburn Street, in Aberdeen, from 5.30pm until 8.00pm. There is no charge to register and those wishing to attend should contact Elisabeth Glover at eglover@ukooa.co.uk |
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