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The UKCS upstream supply chain collaboration survey 2018

Collaboration at a crossroads – which way next?

Trust, technology and transformation remain key to successful oil & gas collaboration

About the report

Our fourth UKCS upstream supply chain collaboration survey, in partnership with Oil and GasUK, which forms the basis of this Review and Index, was conducted in August and September 2018. It looks at how behaviours towards supply chain collaboration have changed since September 2015 seeking the views of over 200 operators and suppliers. By highlighting where collaboration is successful or not, the report provides insight to help organisations improve their performance.

UKCS Collaboration Index 2018

This year’s Industry Collaboration Index remains the same as 2017 at 7.1 sustaining the gains made since 2015, though supplier scores have increased slightly as operators have reduced.

As oil prices have gone up and businesses are doing better, how do we ensure collaboration is still a priority going forward?  

UKCS Collaboration Index convergence with average oil prices

Collaboration Index Results

Collaboration Review

The appetite for collaboration continues to be positive with over 90 per cent stating that it remains crucial for the future success of their business and to their reputation.

Nearly half of respondents do not believe their organisation is able to make effective use of digital to support effective collaboration. However there has been some increase in the intention to use new digital technologies increasing from 8 per cent to 14 per cent - this is still a low base.

The number one reason for collaboration remains cost reduction, though the survey results suggest this may change in the next twelve months as 60 per cent of companies will focus more on business transformation than tactical cost reduction activities.
The Collaboration Index

The Index measures supply chain collaboration and efficiency over time and provides a yearly snapshot of how well companies are seen to be doing by their peers.

The Industry wide index score in 2018 is 7.1, maintaining performance levels from 2017.
Framework for action

The Review and Index shows progress has been made since the survey began in 2015, however sentiment has slipped compared to 2017. Our transformation framework provides guidelines to help companies establish effective supply chain collaboration by focusing on how to make change happen and focuses on leadership, goals, alignment and results.
Operating in the UKCS is challenging and supply chain collaboration has been recognised as critical to transforming business performance.
If you would like to discuss this topic with one of our industry experts, please get in touch with the contacts below. Or if you have any questions about the report, please email the UKCS team.
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