Developing and Executing a Drilling Rig Sourcing Strategy

Situation:

Operations team were unhappy with the current contractual relationships and wanted help to redefine requirements and approach the market. This company turned to us to lead the sourcing program.

Approach:

• Joint CPP/Client sourcing team set up to identify specifications, agree KPI’s, H&S and SLA requirements,
• Developed pricing strategy
• Supplier evaluation methodology
• Developed the RFP documents
• Supplier Negotiations
• Contract Award

Recommendations:

• Sourcing approach
• Negotiation strategy
• Supplier selection with stakeholders and governance board

Benefit:

$10 million in savings over our previous contract, successfully approved, signed-off and ringfenced by finance.
Stakeholder feedback was very positive with increased awareness of procurements contribution in sourcing initiatives.