Supply Chain Management for Oil and Gas Operations Training Course

Course overview

Oil and gas supply chains operate under conditions that make routine procurement decisions commercially and operationally critical. Long-lead rotating equipment, valves, OCTG, chemicals, spare parts and offshore logistics must be aligned with drilling schedules, shutdown windows, production commitments, import controls and HSE requirements. A late purchase order, weak expediting plan or poorly qualified supplier can delay a well campaign, extend turnaround duration, create inventory exposure or interrupt production. This course equips participants to manage these interfaces with stronger commercial discipline and operational awareness.

Participants examine the full supply chain from demand planning and category strategy through sourcing, contracting, supplier qualification, expediting, logistics, warehousing and materials availability. They learn to build procurement plans linked to project milestones; assess total cost of ownership; evaluate technically compliant bids; set supplier performance measures; manage critical-path materials; and apply risk controls for international, remote-site and offshore operations. The programme also addresses contract interfaces, Incoterms 2020, inventory segmentation, preservation requirements and the use of supply-chain data for decision-making.

Teaching combines instructor-led analysis with realistic oil and gas cases involving an upstream development project, a refinery turnaround and an emergency MRO requirement. Participants work with procurement-planning templates, bid-evaluation matrices, supplier scorecards, expediting trackers and material-criticality tools. Each participant completes an end-of-course Supply Chain Improvement Plan for a defined operating asset, project package or category, including actions, owners, milestones, KPIs and risk treatments that can be presented to management.

The course is designed for experienced procurement, logistics, materials and project personnel who already work with oil and gas suppliers, contractors or asset teams and need to make more defensible, integrated supply-chain decisions.

Course objectives

By the end of this course, participants will be able to:

• Develop an oil and gas procurement plan aligned to project milestones, shutdown windows and long-lead material requirements
• Segment spend using category-management and Kraljic portfolio methods to select appropriate sourcing strategies
• Evaluate supplier bids using weighted technical-commercial evaluation matrices and total-cost-of-ownership analysis
• Apply supplier prequalification criteria covering quality systems, HSE capability, financial stability and local-content obligations
• Construct an expediting and inspection plan for critical equipment from purchase order release through delivery
• Interpret Incoterms 2020 and logistics risk responsibilities for cross-border, offshore and remote-site shipments
• Set inventory policies using ABC-XYZ segmentation, critical-spares analysis and reorder-point logic
• Produce a supply chain improvement plan with KPIs, risk controls, accountable owners and implementation milestones

Benefits of attending

Target competencies

Who should attend

• Supply Chain Managers — who coordinate procurement, logistics and materials availability across operating assets or projects
• Procurement Managers — who lead sourcing and contracting decisions for equipment, services and maintenance categories
• Project Procurement Engineers — who must secure long-lead materials against engineering and construction schedules
• Materials and Warehouse Managers — who manage critical spares, preservation, stock accuracy and asset availability
• Logistics and Expediting Specialists — who control supplier progress, inspections, freight movements and delivery risk
• Operations and Maintenance Planners — who depend on timely materials and service contracts for shutdown and production work

Requirements and prerequisites

Participants should have practical experience in procurement, logistics, materials management, project controls or operations within oil and gas, petrochemicals, energy services or a closely related industrial sector. They should understand purchase orders, RFQs, supplier quotations, basic contract terms, inventory records and project schedules. Familiarity with Excel is assumed for working with templates and calculations; exposure to an ERP system such as SAP is helpful but not essential. Prior knowledge of Incoterms, category management, formal risk analysis or specialised supply-chain software is not required. This is not a beginner introduction to purchasing.

Training methodology

The programme uses short instructor-led briefings followed by guided application to oil and gas supply scenarios. Participants analyse a long-lead equipment package, score supplier bids, build an expediting tracker, select Incoterms for a cross-border shipment and segment an MRO stock list. Small groups work through upstream project, refinery turnaround and remote-site logistics cases, then defend decisions against commercial, operational and HSE constraints. Daily outputs feed an individual end-of-course Supply Chain Improvement Plan, reviewed through structured peer and instructor feedback.

Course outline

Day 1: Oil and Gas Supply Chain Strategy and Demand Planning

• Oil and gas supply chain interfaces across upstream, midstream, downstream and LNG operations
• Demand planning linked to drilling programmes, project schedules, turnarounds and maintenance plans
• Material criticality assessment for production-critical and safety-critical items
• Long-lead equipment identification and procurement lead-time modelling
• Category management for equipment, MRO, chemicals and contracted services
• Kraljic portfolio analysis for supply risk and commercial leverage
• Supply chain KPIs for availability, cost, delivery, quality and working capital

Workshop: Participants map the demand and supply risks for a planned facility shutdown and produce a critical-materials procurement timeline.

Day 2: Strategic Sourcing, Contracting and Supplier Governance

• Sourcing strategy selection for competitive tender, framework agreement and single-source procurement
• RFQ and ITT scope development using technical requisitions and data sheets
• Weighted technical-commercial bid evaluation methodology
• Total cost of ownership analysis for equipment and lifecycle support
• Supplier prequalification covering HSE, quality, capacity, financial health and local content
• Contract risk allocation for warranties, liquidated damages, inspection and change control
• Supplier relationship management and performance-scorecard design

Workshop: Participants evaluate three compressor-package bids using a weighted matrix and produce a documented award recommendation.

Day 3: Expediting, Quality Surveillance and Project Materials Control

• Purchase order kick-off meetings and supplier document-register requirements
• Expediting stages from engineering approval to manufacturing, testing and dispatch
• Critical-path reporting using milestone schedules and recovery actions
• Inspection and test plans, hold points and third-party inspection coordination
• Non-conformance management and concession-control processes
• Vendor data management for manuals, certificates and as-built documentation
• Material status reporting and interface control with engineering and construction teams

Workshop: Participants build an expediting and inspection recovery plan for a delayed subsea valve package and present escalation actions.

Day 4: Logistics, Warehousing and Inventory Reliability

• Incoterms 2020 allocation of transport, insurance, customs and delivery responsibilities
• International freight planning for oversized, hazardous and time-critical cargo
• Customs documentation, import permits and sanctions-screening considerations
• Offshore and remote-site logistics constraints including marine and helicopter movements
• Warehouse receiving, preservation, traceability and quarantine controls
• ABC-XYZ inventory segmentation and critical-spares classification
• Reorder points, safety stock and inventory-accuracy measures

Workshop: Participants design a logistics and inventory-control plan for critical spares moving to a remote offshore installation.

Day 5: Supply Chain Risk, Digital Control and Improvement Planning

• Supply chain risk registers for geopolitical, supplier, logistics, quality and demand risks
• Business continuity planning for single-source and constrained materials
• Supplier performance analysis using OTIF, quality and corrective-action metrics
• ERP-enabled purchase-to-pay and materials-visibility controls
• Using SAP S/4HANA and SAP Ariba data for procurement and supplier oversight
• Root-cause analysis of material availability failures using the 5 Whys method
• Supply chain improvement roadmaps, governance cadence and benefit tracking

Workshop: Participants complete and present a Supply Chain Improvement Plan containing KPIs, risks, actions, owners and a 90-day implementation schedule.

Tools & standards covered

SAP S/4HANA, SAP Ariba, Oracle Primavera P6, Incoterms 2020

A typical training day

Live online deliveries follow the same structure in the East Africa Time zone, with shorter screen blocks and longer breaks.

What the fee includes

How you can take this course

Certification

Participants who complete the full five days receive the Skillset Development Certificate of Completion, stating the course title, course code, dates and delivery format — suitable for professional-development records and employer reimbursement.

Frequently asked questions