Collaboration within the supply chain

Article

Collaboration within the Supply Chain

A win-win strategy for the Dutch Oil and Gas Industry

Dutch operators and suppliers are well aware of the need to strengthen supply chain collaboration in the face of tough challenges and are taking strategic action to make this happen. Some 92% of operators and 94% of suppliers in the Netherlands acknowledge that collaboration is essential for their future success. Yet, the Oil and Gas industry is leveraging supply chain collaboration to a lesser extent than other industries, and to date, the industry can claim few successes in effective supply chain collaboration.

6 December 2016

Monitor Deloitte conducted a survey and in-depth interviews with IRO and NOPEGA members. This  report sets out the findings of this comprehensive study on supply chain collaboration in the Dutch Oil & Gas industry and provides a comparison with the UK.

The industry speaks…

When asked why their collaboration efforts were ineffective, industry players were almost unanimous in stating the key reason to be misaligned expectations. Dutch operators ranked unclear definition of responsibilities as the second reason, followed by ‘the other party not being open to suggestions’. The same two reasons were also given by Dutch suppliers but in reverse order.

When it came to reasons for successful collaboration, Dutch operators listed ‘having a business strategy that encourages collaboration’ as the top reason, while suppliers listed ‘having actively sought opportunities to collaborate’. This was in contrast to their UK counterparts, with both operators and suppliers putting ‘having established a trusted relationship between parties’ as the main reason for successful collaboration.

Dutch players rated their collaborative counterparts consistently higher than UK players did. In both countries, operators and suppliers rated each other lowest on the collaboration criteria of ‘being financially incentivizing to collaborate’ and ‘the terms in the commercial agreement effectively promoting collaboration’. The rating scores on these two criteria were lower in the UK than in the Netherlands.

Oil and Gas Collaboration 2016

Request report

Where to now…

Based on feedback from the industry survey, and supported by Monitor Deloitte’s overall analysis of the oil and gas market, a number of strategic considerations are put forward to support an ecosystem approach towards more effective collaboration. The key elements of a strategic rethink are identified as:

  • Leadership and business culture: taking responsibility and leading by example to improve business performance and to establish a collaborative culture throughout the organisation.
  • Strategy and business models: focusing on high-impact areas where collaboration will achieve significant results and establishing the right and innovative business models to maximise impact.
  • Business processes: identifying the changes needed in operations, processes and systems to support new ways of working at scale and to address process hurdles affecting collaboration.
  • Standards and regulatory matters: identifying and communicating barriers to effective collaboration that require regulatory support to resolve.

Bottom line

To seize upcoming opportunities for collaboration, such as decommissioning, industry leaders need to act as ‘collaboration champions’, and pro-actively address changing the business culture, business models, business processes, and the regulatory environment to facilitate collaboration.

Furthermore, industry leaders need to drive cross company forums to address and resolve key industry challenges, and to power interaction between partners and to build trust.

Collaboration within the supply chain

More information

If you’d like to discuss this topic with one of our industry expert please get in touch via the contact details below.

Vond u dit nuttig?