BuyerSeller Forum

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Buyer/Seller Forum

• March 2005

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Topics

• Spend Profile
• 2005 Priorities
• Procurement Strategy
• Supplier Qualification

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2004 Spend Profile
2004 Total Spend 1.7 Cdn (excluding
feedstocks)
90 gt 800 suppliers
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Project Profile Spend
u
u
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• Supply Chain Management
• 
  2005
  Priorities

Growth Resources Waterton Optimization/Peace
River/Foothills Interconnects/McKenzie
Delta Products - ULSD Oilsands
Debottlenecking/Expansion
Processes Category Procurement Strategy
Reviews Contract Management
Administration Requisition to Pay
Standardization Invoice Imaging
Technology eProcurement ramp-up eInvoice
People Project procurement skills Construction
management
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• 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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Category Management Process
Within a Category
Supply Chain Cost Modeling







Planning And Appraisal
Category Strategy Selection
Sourcing Contracting Execution
Contract Management
Business Needs
Market Analysis

• Establish Team Governance
• Gather Category Data Segment Category Spend
• Review Business Requirements Identify
  Opportunities

• Identify Industry
• Structure
• Identify Levers in Supply Market
• Assess Current,
• New Non Traditional
• Suppliers
• Summarize Improvement Opportunities

• Build Supply Chain Process Map / Prioritise
  Opportunities
• Build Cost Models
• Identify Cost Value Drivers / Prioritise
  Opportunities

• Develop Category Strategy
• Document Category Strategy

• Develop Contract Draft
• Execute
• Go to Market Approach
• Evaluate Award Contract
• Develop Implement Transition Plan

• Initiate
• Start up
• Manage Performance Relationship
• Execute Close Out Feedback

• Identify Improvement Opportunities
• Develop CP Plan
• Integrate CP Plan with the TR Process
• Deliver CP Plan, Track, Measure and Report Value

Enhance Value

• Manage Change

• Deliver Opportunities

• Share Learning

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Supplier Qualification Process

• Qualification
• Monitoring
• Performance reviews
• Excellence awards

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Qualification Process

• Critical Equipment
• Centralized Process
• Technical requirements
• Quality assurance
• Capability (Manufacturer Distributor)

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Qualification Process

• Contractors
• Centralize Standardize Process in 2005
• HSSD
• Commercial capability
• Performance/Reliability
• Supervision