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Supply Chain Case 1 – Supplier performance review in line with local content regulations

situation

  • An IOC affiliate, in Africa, wanted to improve local supplier participation in line with local content regulatory requirements; specifically the client wanted to:
    • Improve knowledge of local supplier market capabilities
    • Streamline its local supplier database
    • Identify & qualify local suppliers to partner with/ support to develop capabilities that will address client’s future operational demands

our approach

  • The project was designed around four phases:
    • Identify relevant local suppliers
    • Conduct supplier survey to gather information on current capabilities
  • Survey form to capture key information on HSE, quality, experience, financials, etc.
    • Evaluate suppliers using transparent criteria - balanced scorecard (suppliers selected based on evaluation score)
    • Develop database of qualified local suppliers.

Outcome

  • Streamlined supplier database with local manufacturers categorized by location, capacity, technical competence and product quality
  • Clearly defined needs assessment of qualified suppliers with development plans on how to acquire competency/ capability gaps
  • Improved process to qualify new and existing suppliers for tender issuance to enhance local content procurement