Due Diligence Dimensions and Ranking Methodologies for Supplier Selection Process on Oil and Gas Projects

Shobhendu Prabhakar

doi:https://doi.org/10.14445/22315381/IJETT-V47P234

Research Article | Open Access | Download PDF

Volume 47 | Number 2 | Year 2017 | Article Id. IJETT-V47P234 | DOI : https://doi.org/10.14445/22315381/IJETT-V47P234

Due Diligence Dimensions and Ranking Methodologies for Supplier Selection Process on Oil and Gas Projects

Shobhendu Prabhakar

Citation :

Shobhendu Prabhakar, "Due Diligence Dimensions and Ranking Methodologies for Supplier Selection Process on Oil and Gas Projects," International Journal of Engineering Trends and Technology (IJETT), vol. 47, no. 2, pp. 213-216, 2017. Crossref, https://doi.org/10.14445/22315381/IJETT-V47P234

Abstract

Supplier selection is a key process in procurement phase of any oil and gas project. Thorough due diligence in supplier selection process not only ensures selection of a superior supplier that can deliver equipment and procurement services in a cost effective manner and according to the project specifications but also mitigate risks in oil and gas project execution. This research paper discusses different dimensions of due diligence process, analyses ranking methodologies and suggests risk mitigation actions while selecting suppliers on oil and gas projects.

Keywords

Supplier selection, Procurement, Global sourcing, Oil and gas industry, Oil and gas projects, and Logistics.

References

[1] V. Raghothamarao, Strategic Supply Chain and Procurement Best Practices in Oil and Gas, http://www.sdcexec.com/article/12160063/strategicsupply- chain-and-procurement-best-practices-in-oil-andgas, Supply & Demand Chain Executive, Mar, 2016
[2] P. Kraljic, Purchasing Must Become Supply Management, Harvard Business Review, Sep, 1983
[3] Procurement, Bain & Company, http://www.bain.com/consulting-services/performanceimprovement/ procurement.aspx
[4] B. Luzon & S. M. El-Sayegh, Evaluating supplier selection criteria for oil and gas projects in the UAE using AHP and Delphi, International Journal of Construction Management, Volume 16, 2016 - Issue 2
[5] The key to profitability in capital projects Sourcing excellence, https://www.strategyand.pwc.com/media/file/Strategyand_ Sourcing-excellence.pdf, Booz & Company, 2011
[6] S. Prabhakar, Risk Based Quality Auditing – A Value Added Approach, International Journal of Engineering Trends and Technology, Vol. 46, No. 1, April, 2017
[7] F. Cigala, Lodewijk de Graauw, J. McCreery and H. Shafi, Adopting a More Strategic Approach to Procurement in Oil and Gas, http://www.bain.com/publications/articles/adopting-amore- strategic-approach-to-procurement-in-oil-andgas. aspx, Bain and Company, Sep, 2015.
[8] Arno Gerken, Tilman Melzer, Marco Wampula, Managing supplier risk in the transportation and infrastructure industry, McKinsey Working Papers on Risk, Number 57, Nov, 2014.
[9] S. Prabhakar, Risk Management and its positive impacts on efficiencies and saving jobs in Oil and Gas Industry, International Journal of Advanced Research Trends in Engineering and Technology, Vol. 4, Issue 5, May, 2017.
[10] Tender Efficiency Framework, Oil & Gas UK, Issue 1, Dec, 2016.