Case Study: BP’s Procurement and Supply Chain Management
Deliverables the case study as follows:
1) 20-25 minute power point presentation to the class outlining the results of their analysis of the case questions (50 Points)
2) A 3-4 page written response* outlining the results of their analysis of the case questions (50 Points)
Any data (e.g. academic articles, case, industry journals, periodicals, videos, or other sources of relevant information) relevant to the case and/or question response should be included.
Case Study Questions
Do you recommend the consolidation effort of PSCM? Why or Why not? Justify the answer and include a plan of action if you decide to consolidate the pipe inventory. The plan should include the following points:
1. A breakdown of current inventory carrying costs on an annual basis using the information provided in the case study. What information is missing that would be helpful? Include any assumptions you make such as fill rate and inventory holding costs.
2. Develop a strategy for consolidation or standardization that includes which pipe specifications will be kept and which specifications will be excluded and justify your reasoning. The plan should include expected annual cost savings, improvements to inventory management, and a plan to phase out or dispose of obsolete inventory if applicable.
3. There are two groups that will likely oppose such an effort: BP engineers working on the various projects and joint-interest partners that help fund each project. Describe how you would approach the different groups to obtain approval for your consolidation plan. Describe the drivers that each group faces and identify potential points of conflict and how you would overcome such opposition if challenged.