BuyerSeller Forum

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Buyer/Seller Forum

• March 2004

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Topics

• Dimensions
• Procurement Strategy
• Learnings

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Supply Chain Management

Dimensions
2003 Total Spend 1.7B Cdn (excluding
feedstocks)
90 gt 800 suppliers
4

• Supply Chain Management
• 
  Strategy

• Total Cost of Ownership
• Maximize Leverage
• Manage Supplier Relationships
• Skilled procurement professionals
• Business Partner Involvement
• Technology solutions

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Total Procurement Process
Product Cost/Value
Acquisition Cost
Life Cycle Cost
Supplier
Shell
Shell

Total Cost of Ownership
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Strategy Execution - the road to world class
Procurement
Differentiated supply tactics
Supply chain improvement
Integrated supply chains
Optimum value chains
Basic supply operations
stage 5
stage 4
stage 3
stage 2
Max value/cost

NWEA
stage 1
Alliances Cross-Enterprise Technology
integ- ration with suppliers
Regiona/global leverage Procurement
Strategy Life-cycle cost improvements
Process Improvements Contractor
value Performance based Best practices
Local leverage Vender rationalization Variety
Control Efficient supply/ operations
Breakthrough performance
Improve existing business

• Enablers

• Planning
• Performance measurement/Benchmarking

• Human Resource Development Training
• Information systems

• Process Drivers, which must be in place in order
  to move into each stage

Management commitment to improve supply practice
Challenge of external best practices
External benchmarking
Cross-enterprise cooperation and need to align
supplier/client objectives
Need for value creation and individual customer
focus
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• Supply Chain Management
• 
  Project Learnings

• Optimum Shell Involvement
• Global market
• Preferred Supplier Arrangements Bidding
• Contracting Strategy
• Quality Assurance/Inspections