Industry experience
Oil, Gas & Petrochemicals
Worldwide Procurement Change Management
- Client
- Global Petrochemicals Company
- Sector
- Oil, Gas & Petrochemicals
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- Worldwide Procurement Change Management
Project description
Our client wished to reorganise its Chemicals Management Services (CMS) procurement from a dispersed basis to one realised from three key global providers.
The objective was to release annual savings of $20m by developing a more market-facing procurement capability.
The concept would not only require significant change in internal process and resourcing, but also demand a completely revised procurement mindset focused on long term solution-based relationships, rather than simple transactional supply arrangements. A change program was therefore set up across all of the client’s refining and chemicals manufacturing facilities around the world - to manage both ‘hard’ and ‘soft’ change agendas.
Chaucer was retained to provide program management expertise to ensure delivery of the financial prize.
In addition, Chaucer’s supply chain expertise, deep understanding of our client’s business activity and proven capability to co-ordinate simultaneous program activity in Europe and America were seen as key components in our successful delivery.
Chaucer's scope
Chaucer established a full scale program office to control this complex program.
Creation of consensus by devising and communicating high-level program strategy & principles.
Development and maintenance of bespoke program management tools incl; a dedicated e-Project site, MS Project plans, issues management, detailed actions trackers, etc.
Regular production of activity lists for key program individuals.
Rigorous risk assessment and delivery of risk mitigation plans.
Regular reporting, with escalation as required.
Continuous guidance on team effectiveness, including elements of communication and mentoring.
Benefits
The CMS program was able to fulfil its delivery of the $20million saving.
This was not only due to Chaucer’s focus on outcomes, but also on our work identifying and neutralising significant program risks – some of which were ‘soft’ and required complex management – these were identified by Chaucer very early on in the program.
Chaucer’s in depth procurement knowledge and change management experience meant that we were able to contribute additional benefits over and above the program management brief.
These included providing content in the fields of procurement transformation, culture change, leveraging supplier expertise, supply base rationalisation, and global technical standards. These additional skill sets helped facilitate the development of detailed activity schedules and planning required to effectively and efficiently governing the program going forward.
Being regarded as a program of significant value to our client, CMS became a showcase for best-practice program management techniques. These were subsequently applied to the top 5 programs in 6 strategic performance units within the client’s broader procurement transformation initiative.
