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Procurement & Supply Networks Summary

Scope

Provide the building blocks of standard processes, classification systems, and data exchange mechanisms to enable fully integrated, automated procurement and supply management systems. These systems support the seamless execution of procurement functions throughout the selection, delivery and payment processes.

Vision

The capital facilities industry will interact in a distributed electronic commerce environment that enables suppliers and subcontractors across the world to seamlessly "plug in" (with appropriate security) to any project, identify business opportunities, exchange requirements and bid information, and monitor progress of order fulfillment. Procurement systems will be seamlessly integrated with the project design system, project management and control system, finance system, field materials management system and the global supply network.

Benefits and Opportunities

Imagine a fully integrated procurement system that enables enterprises and project teams to optimize work packages, select products, identify qualified suppliers, and procure the best products at the best prices with complete confidence and ability to deliver on time and within budget. Project managers and procurement specialists can automatically track every order through delivery to the job site, orchestrate the flow of resources for optimal build efficiency and provide instant visibility of progress and variances against technical, schedule, and cost requirements throughout the selection, delivery and payment processes.

An integrated procurement function will deliver significant cost savings on every capital project through its ability to deliver exactly correct goods and services on time from the lowest-cost qualified source.

Goals

The goal of this element is to identify and pursue business process improvements, capabilities and technologies to advance the development of fully integrated supply chain, engineering, procurement, logistics, project controls, job site delivery and financial systems that provide real-time collaboration and optimization across the entire supply network.

Real-time automated procurement and supply network goals are:

  • Define and document best practices for supply chain production, logistics, validations and information flows to identify inefficiencies and bottlenecks and highlight improvement opportunities.
  • Integrate engineering, project controls, financial systems, procurement, materials management, and field construction work processes and supporting tools.
  • Integrate and automate supply chain work processes and job site control and tracking of materials and labor.
  • Develop means to objectively and dynamically evaluate supply chain performance.