For this project, the purpose was to access the overarching process and approach to SRM within Oxy organisation and coming up with appropriate implementation plan. The relevance of this project was informed by the fact that with the organisation having a large scale of operations with multiple end users, SRM is a significant issue. Also, the organisation operating in both local and international operations with multiple suppliers and spend areas to be coordinated. The outcome of this would be to promote and improve SRM for aligning with Oxy organisation strategic objectifies, supply chain function being strategic integral partner as opposed to just transactional player. Owing to the importance of SRM improvement, the different outcomes would entail;
- Enhanced Suppliers Performance- With an upward of 50,000 orders annually with 40% valued more than 5 million Omanis and 50% 20 Million Omanis, failure to timely settle invoices, demand for high quality materials and minimising effects would be considered.
- Cost savings- With improved SRM, it is possible for Oxy to negotiate appropriate terms, lower procurement costs (5 Rights not currently achieved) hence working below targets and lead times delivery reduced and achieving economies of scale.
- Increased efficiency- improved and streamlined SRM improve operational efficiency, reducing wastes in administration process for SRM (25% of entire suppliers pay delayed)
- Risk mitigation- this include identification of risks linked with suppliers such as dissatisfaction, financial instability and geopolitical challenges
The data used in informing the set project findings was obtained from the application of both quantitative and qualitative data by using questionnaires and interviews. Also, literature review has been sourced for affirming the relevance of the findings on best strategy in improving SRM in Oxy organisation context. This is supported by different CIPS module notes. The key findings include despite of Oxy Organisation having a stable SRM, there is still a need for improving. The findings evidence this to be an attribute of the broad scope of the organisation operation in different industries and markets locally (in Oman) and internationally. The findings also identify existence of gaps in SRM evidenced by reduced collaboration amongst the different stakeholders with relevant solutions recommended for improvement. Part of this report has included a developed SRM approach which is applicable in Line Pipe Category. In line with the obtained research findings, various recommendations have been generated for improvement. These include;
- Oxy organisation PS&M is supposed to come up with appropriate systems and techniques for improvement of SRM
- Oxy organisation need to make sure they use various automations including AI and robotics for improving collaboration and SRM efficiency.
- Facilitate policies management for improving their operations in onshore and offshore operations with an improved SRM
- Short courses on SRM need to be provided starting with PS&M leadership to achieve 50% increase in awareness of SRM improvements areas.
- Stakeholders relations improved by leveraging on available technologies of communication and interaction.
- Ensure there is 70% increase in budget on SRM improvements
