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.
Procurement in the Oil and Gas Industry faces many challenges especially because of the volatility of oil price, supply and demand; however, with the right effective procurement strategy and sharp analysis, they could overturn the crisis into opportunity.