An effective procurement strategy is not only a financial plan to manage the budget but also the workflow, and production timelines while keeping everything aligned with the company objectives. With the volatile market of the oil and gas industry, procurement plays an important role in ensuring supply of items and services are within budget allocation, ensuring on-time delivery on site and cost savings without jeopardizing quality and safety. As many professionals in the Oil & Gas industry are already aware, there are various high complexity of items and services which needs to be purchased. Hence, an effective procurement strategy plays a pivotal role in achieving this goal.
Every business faces risks that could hinder its success. This is especially so for the Oil and Gas industry where the risk is more complex. With proper risk management plan, it would be able to overcome the risks and if possible turn it into opportunities. Risk Management is the process of identifying, analyzing, monitoring, communicating and treating risks that may occur and impact on the project schedule and cost in a way that it will be able to minimize any losses and maximize opportunities.