Page 6: Conclusion
Well-managed procurement ensures that supplies of the required quality are available at the right time, place and cost. Supply chain managers help to:
- reduce costs and improve profitability – bulk buying can provide economies of scale
- reduce waste by selecting inputs that generate less waste (and also lower costs)
- manage demand, for example, through just-in-time supply
- improve cash flow by securing favourable prices and payment terms
- improve efficiency by making sure suppliers hit deadlines
- improve the competitiveness of the business by seeking out innovative products and services to add value.
In the oil and gas industry, where safety is a central concern, effective management of purchasing and supply is a vital role. Its procurement managers need to have good people skills, sound common sense, commercial and business skills and the ability to communicate appropriately at all levels.
OPITO and CIPS are working together to ensure that the industry has the relevant training and qualifications programmes to meet the long-term needs of the oil and gas industry.