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Solution
Executive Summary
In this report, an evaluation of global strategic practice pursued by Wood Plc for management of their supply chain has been provided. The rationale of this is that supply chain correlate to market change for supply chain and sustainable global sourcing strategy. Also, globalisation impact strategic logistics impact and also supply chain management as part of corporate development. For Wood Plc, being a contractor engaging different oil and gas producers, a review of their supply chain impact on best practice in implementing the strategy. Also, for the entire identified challenges, risks incurred and opportunities evidence best practice of an entity to capitalise.
In line with Wood Plc, supply chain practices is detailed and inclusive of various tiers. These tiers are classified based on the various organisation objectives and corporate approach. This assessment has utilised various techniques including the SWOT, STEEPLED and Porter’s 5 Forces analysis and more analysing the influence of supply chain approaches. Further, through the application of Balanced Scorecard, an evaluation of financial and non-financial factors have been pursued. Also, Mendelow Stakeholders Analysis in Wood Plc has been used while best practice attained holistically.
In line with the research analysis and findings, different recommendations are suggested including;
- Improving collaboration, network-based practice and innovativeness to ensure they embrace sustainability in supply chain
- Improving supply chain development through an increased chances for learning
- Conflicts management in entire supply chain relations to ensure stakeholders are involved and part of the implementation of the practice
- Transition to supply chain to establish best practice to capture the entire tiers of supply chain management
Table of Contents
1.1 Wood Plc Organisation Background. 3
1.2 Identified Supply Chain. 3
2.0 Market Changes Impact on Supply Chain. 5
2.1 Porter’s 5 Forces Analysis 5
3.0 Sustainable Global Sourcing Decisions. 7
3.1 Sustainable Global Sourcing Decisions Consideration. 8
3.2 Sustainable Global Sourcing Decision Making. 9
3.3 Global Supply Chain Risks Identified. 11
4.0 Strategic Logistical Implications of Globalisation. 13
4.1 Globalisation and Importance; Supply Chain and Logistics Context 13
4.2 Strategic considerations linked with global nature of supply chain. 13
4.3 Strategic Logistics Risks and Opportunities for Globalisation. 14
5.0 Supply Chain Management on Corporate Performance. 15
5.1 Performance of Supply Chain impacting Orgnisation Objectives. 15
6.0 Conclusion and Recommendations. 17
Figure 1:Tiered Supply Chain for Wood Plc. 5
Figure 2:Wood Plc Summary of Porter’s 5 Forces 6
Figure 3: Sustainable Procurement approaches 8
Figure 4:-Ps Global Sourcing Sustainable. 9
Figure 5:Mendelow Matrix Analysis Summary. 11
Figure 6:Risks Resilience Model Analysis Summary. 12
Figure 7:Global Perspective and SCM practices of operations. 14
Figure 8:Summary of the Red and Blue Ocean and Strategic Views. 15
Figure 9:Supply Chain Logistics Risk and Opportunities management 16
Figure 10:Supply Chain Aligned with Organisation Objectives. 17
Table 1:STEEPLED For WoodPlc Summary. 7
Table 2:Risk Register for WoodPlc. 13
1.0 Introduction
1.1 Wood Plc Organisation Background
WOODPLC having an upward of 35,000 professionals in 60 different countries is ranked as the globally leading consulting and engineering company which operate in the Energy and Materials market. As evidenced in WoodPLC (2022), the organisation is tasked with a role of unlocking solutions to the world’s most critical challenges which is being future ready, now. For the organisation consulting area, it is involved in a global, end-to-end, multi-sector specialist consultancy with a trust-based relationship with their customers. This is for offering the most innovative solutions and provision of excellence core for current management of most complex issues and maximising value in the entire asset life cycle. For the projects, they are involved in delivering digitally enabled capital investments with low carbon solutions. Particularly in their operations in UAE, they are able to offer Upstream/Midstream,/Downstream Oil and Gas support services. This is with their operations inclusive of delivery of an integrated, agile and intelligent solutions for managing their customers assets. This is in more than 20 countries and over 15,000 strong teams delivering solutions for optimising the world’s critical assets.
1.2 Identified Supply Chain
In this assessment, the supply chain selected is used to source IT system by Wood Plc organisation to aid on their operations. The rationale of this is that Wood Plc in their different categories of spend are characterised by varying supply chains. These are for logistics, Health and Safety, vehicles and various facilities administration. For IT system spend, a tiered supply chain is used. In line with CIPS (2022) tiered supply chain include a practice pursued for management of suppliers in different tiers influenced by supply chain relevance. Owing to the importance of the customers and need to provide appropriate contracting services to the oil and gas producers, they involve the Original Equipment Manufacturer (OEM) for the IT spend category is used. Further in line with Duberg et al. (2020), the importance of tiered supply chain is to ensure a leverage on reduced commercial relationship to manage different teams and prioritise on set timelines for actualising the sourcing strategy.
For Wood Plc, by using the tiered supply chain, it is possible for an entity to strategies on sustainable supplier development approach. The entire transaction is applied with a need to ensure a target on OEM as illustrated in figure 1;
Figure 1:Tiered Supply Chain for Wood Plc
For the provided supply chain, the importance of this is guided by;
Customers (End-users)- The end-users are engaged to develop all the technical needs including the level of identifying roles and ensuring entire specifications of the Wood Plc are elaborate for clients needs. Also, they ensure regulation of entire services providers and entire stakeholders
Procurement and Supply Chain Management (PS&M)- This entail PS&M leading to successful tendering, ensuring full agreement, supporting development process of the contract, coordination and communication.
Authorising transactions- This is used to authorise pay informed by call-off shared by Wood Plc providers accountants and financial teams
Health, safety and Environment (HSE)- For IT systems being sourced by Wood Plc by the organisation ensure they are adhering for relevant specifications for their operations particularly for remote working post-COVID-19
Legal factors– This factor is important to establish scope of increasing claims and legal factors evident
2.0 Market Changes Impact on Supply Chain
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