|Publisher||Society of Petroleum Engineers||Language||English|
|Content Type||Conference Paper|
|Title||Creating a Sustainable Supply Chain E&P Model|
Cindy Overton, Convergence Advisors International
International Conference on Health, Safety and Environment in Oil and Gas Exploration and Production, 11-13 September 2012, Perth, Australia
2012, SPE/APPEA International Conferenceon Health, Safety, and Environment in Oil and Gas Exploration and Production
|2 Health, Safety, Security, Environment and Social Responsibility
Supply chain issues represent one of the largest potential risks to E&P businesses. There is no discrimination based on size, or which segment of the industry your business occupies.
Supply chain management is not new – to varying degrees it’s the tool used to ensure critical production needs are met, costs are managed and processes are streamlined. With few exceptions, this is still largely managed as a procurement and cost control issue in the E&P sector. Consideration of SR issues widens the court, and demands a new approach.
Best practice models for supply chain management reside in retailing and certain elements of that model translate to our business. Globally, E&P companies must deal with social investment, capacity building and technology transfer, and security impacting supply and quality. Domestically the issues have a more traditional bent. Because the geographic impacts are so diverse, it’s important to design a process that addresses the issues faced by your organization.
This paper evaluates how E&P businesses currently integrate SR into supply chain management and compares that with best practice. A second, and perhaps more important part of this paper looks at how a company gets from its current traditional supply chain approach to one that has integrated the organization’s sustainability goals into its practices, ensuring the broader needs of the organization are met.
The models laid out in this paper can be applied to any organization interested in integrating supply chain issues into the SR process.
Companies that integrate SR issues into traditional supply chain management organizations will have better clarity with respect to risk potential and will be in a better position to manage or mitigate those potential risks.
This paper provides a roadmap for companies who want to raise the level of performance in their supply chain organizations by integrating SR into the content and frame the effort around best practice methodology.