Making alliances work -- Using a computer-based management system to integrate the supply chain
- Amoco Production Co., Houston, TX (United States)
- OGCI Management Inc., Tulsa, OK (United States)
Traditionally, price has been king in the selection of suppliers and service companies in the upstream oil and gas market. Three years ago, Amoco began to question this selection practice and embarked on an extensive benchmarking effort that has led the company to a proven strategy for goods and services procurement called supply-chain management (SCM). However, the company found that managing compact, integrated supply chains is not always easy. Several implementation issues need to be reconciled for alliances to achieve their full bottom-line potential benefits consistently. Issues that must be resolved, whether they are called alliances, supply chains, or integrated services, are (1) whether these new working relationships are profitable for all the entities involved, from suppliers through to end users; (2) how to assess and improve risk management; (3) how to reduce total system costs; and (4) how to improve performance for each of the alliance members and for the alliance as a whole. This brief describes one possible solution to the complex issues involved in making alliances work: a computer-facilitated management system designed to integrate the work processes of different organizations. In the case described, the Drilling Management System (DMS) was developed and used by the Amoco (U.K.) Well Dept. The system uses off-the-shelf commercial software to improve the performance of the company`s drilling operations by integrating the activities of the company and its suppliers.
- Sponsoring Organization:
- USDOE
- OSTI ID:
- 87509
- Journal Information:
- JPT, Journal of Petroleum Technology, Journal Name: JPT, Journal of Petroleum Technology Journal Issue: 6 Vol. 47; ISSN 0149-2136; ISSN JPTJAM
- Country of Publication:
- United States
- Language:
- English
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