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TCO Supply Chain Management Contracts and Strategic Procurement

TCO Supply Chain Management Contracts and Strategic Procurement. Contracts and Strategic Procurement Functions Manage all major categories of spend to effectively meet BU needs and reduce costs Negotiate, prepare and manage contracts to reduce risks and costs Key Accomplishments for 2006

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TCO Supply Chain Management Contracts and Strategic Procurement

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  1. TCO Supply Chain Management Contracts and Strategic Procurement • Contracts and Strategic Procurement Functions • Manage all major categories of spend to effectively meet BU needs and reduce costs • Negotiate, prepare and manage contracts to reduce risks and costs • Key Accomplishments for 2006 • Major organization restructuring • Changed focus from Service Contracts only to “Strategic Procurement” • Transitioning to Category Management Organization • Operated for 6 months without functional manager in place • Implemented Ariba eSourcing and successfully launched numerous events

  2. TCO Supply Chain ManagementContracts and Strategic Procurement • 2006 Major Contracting Efforts • Crude Export Project Rail Expansion contracted and underway • Maintenance Core Contractor Contracts bid and awarded • Staffing IMA confirmed with Bolashak (Swift) • IMA for GE turbines support executed • New Shop and Lab project bid and awarded (first EPC contract) • Heavy Equipment master contract bid and awarded • ESS contract renegotiated and extended • Consolidated Drilling Services PSL’s negotiated extension – July 06 • Contract negotiated with Caspian Training to assume operation of craft training center • 2-year sourcing for Drilling Rig Services completed - $1.4MM savings • Contracts renegotiated to reflect decreased drilling program

  3. TCO Supply Chain Management Contracts & Strategic Procurement • 2007 Focus • Lead program development and conduct 2006 Contractor Safety Forum • Include all facets of Atlas CHESM program in CSMP process • Continue the transition from Contracting to Category Managemen - Preparing Category Plans to manage all addressable spend • Begin sourcing effort for well services (CSP) • Engage CVX/CIEP resources for training and deployment of CM process and Ariba module • Significantly ramp up eSourcing usage • Train employees and deploy Ariba Contracts module when available • Increase usage of CVX IMA’s and Preferred Suppliers

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