Collaborative principles for better supply chain practice value creation up, down and across supply chains

i PRAISE FOR COLLABORATIVE PRINCIPLES FOR BETTER SUPPLY CHAIN PRACTICE “This is a very timely publication given the changing nature of the oil and gas industry and with the onset of the fourth industrial revolution We need to continually reassess our supply chain practices, learning from other industries, adopting new ways of thinking, and maximizing our collaboration to ensure the sustainability and viability of our own sector Norman McLennan’s book provides some powerful insight into the latest supply chain practices and it is a great guide for supply chain professional across the energy sector.” Professor Paul de Leeuw, Director, Oil and Gas Institute, Robert Gordon University, UK “Against the backdrop of changing working styles, the impact of data, the quest for innovation, value and the speed of change, the importance of supply chains has never been higher McLennan’s timely publication gives private and public organizations the collateral to refresh and reframe their approach towards realizing better supply chain practice It provides context, the why, the how, real examples and potential structures to enable positive outcomes for all parties Now is the time to embrace change and take your business forward, and this is the guide to assist you in unleashing the power of collaboration.” Antony Faughnan MBA, FCIPS, Program Director, Arcadis, UK “Norman has a plethora of experience to share on how to bridge both internal and external stakeholders’ divides and build relationships within the supply chain which moved away from Michael Porter’s ‘balance of power’ paradigm to one of collaboration and true win-win relationships to improve the whole, rather than favour the few The concept of collaboration in any supply chain venture is not new, but practitioners are often stymied in their efforts to move away from more traditional (and human!) adversarial relationships This book explains in a knowledgeable and engaging way why collaboration is of such value, what true collaborative principles look like and how to achieve them.” Dr Orietta Fioroni, Business Transformation Leader and former Operational Excellence Coach, Deloitte, UK ii “Domestic and international projects across various sectors continue to overrun on original cost and schedule The definition of insanity is ‘doing the same thing over and over again and expecting a different result’ Projects across the globe that focused on collaborative relationships have broken that mould and delivered step change results in terms of cost and schedule which traditional execution models have not Norman, based on his extensive practitioner experience, leading and creating collaborative relationships, has provided insights and clarity on how such relationships can be achieved and the benefits this can bring to all participants.” Peter A Jessup, Former Group VP SCM and CEO Proactive Change LLC, USA “Collaboration is increasingly being applied by supply chain companies as the fastest and most effective means to enact strategic change – whether to grow faster, to diversify, to apply new technologies or to export Norman McLennan’s focus on this important area in this book is therefore timely and resonates loudly with all stakeholders A must-read for business leaders.” Stuart R Broadley, Chief Executive Officer, EIC (Energy Industries Council), UK “Against the backdrop of changing working styles, the impact of data, the quest for innovation, valu and the speed of change, the importance of supply chains has never been higher McLennan’s timely publication gives private and public organizations the collateral to refresh and reframe their approach towards realizing better supply chain practice It provides context, the why, the how, real examples and potential structures to enable positive outcomes for all parties Now is the time to embrace change and take your business forward, and this is the guide to assist you in unleashing the power of collaboration.” William Gingles, former underwriting executive, Lloyds of London iii Collaborative Principles for Better Supply Chain Practice Value creation up, down and across supply chains Norman K McLennan iv Publisher’s note Every possible effort has been made to ensure that the information contained in this book is accurate at the time of going to press, and the publisher and authors cannot accept responsibility for any errors or omissions, however caused No responsibility for loss or damage occasioned to any person acting, or refraining from action, as a result of the material in this publication can be accepted by the editor, the publisher or any of the author First published in Great Britain and the United States in 2019 by Kogan Page Limited Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act 1988, this publication may only be reproduced, stored or transmitted, in any form or by any means, with the prior permission in writing of the publishers, or in the case of reprographic reproduction in accordance with the terms and licences issued by the CLA Enquiries concerning reproduction outside these terms should be sent to the publishers at the undermentioned addresses: 2nd Floor, 45 Gee Street London EC1V 3RS United Kingdom c/o Martin P Hill Consulting 122 W 27th Street New York, NY 10001 USA 4737/23 Ansari Road Daryaganj New Delhi 110002 India © Norman K McLennan 2019 The right of Norman K McLennan to be identified as the author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988 ISBN E-ISBN 978 7494 8049 978 7494 8050 British Library Cataloguing-in-Publication Data A CIP record for this book is available from the British Library Library of Congress Cataloging-in-Publication Control Number 2016046148 Typeset by Integra Software Services Pvt Ltd., Pondicherry Print production managed by Jellyfish Printed and bound in Great Britain by CPI Group (UK) Ltd, Croydon CR0 4YY v To my family – my wife Alison, my three children Holly, Stewart and Lucy, my late parents Kenneth C McLennan and Audrey N McLennan and also to my sisters Pamela and Mary for the guidance and encouragement shown to me throughout my life vi THIS PAGE IS INTENTIONALLY LEFT BLANK vii Co n te n ts About the author  xiii Preface  xv Acknowledgements  xxi How to use this book  xxiii Pa r t O n e   Knowledge architecture around collaboration (the jewel in the crown)  01 Introduction: The rationale for collaborative business practices across supply chains and why collaboration can be the jewel in the crown for organizations  02 Collaborative arrangements: Different supply chain perspectives, drivers and interdependencies  23 Customer profiling  28 Contractor landscape analysis for awareness of interdependencies across the supply chain  31 03 Raising the game – the CRAFT Stage Life Cycle Model and ISO 44001: The evolution and emergence of a new global standard for collaborative working  37 Trends in organizational thinking and the pace of change  38 How to collaborate  38 Stage 1: Operational awareness  41 Stage 2: Knowledge  43 Stage 3: Internal assessment  44 Stage 4: Partner selection  46 Stage 5: Working together  47 Stage 6: Value creation  50 Stage 7: Staying together  50 Stage 8: Exit strategy activation  52 Conclusion  54 viii Contents 04 The importance of stakeholder engagement in harnessing the benefits of collaborative working practices  55 Step 1: Identify stakeholders  66 Step 2: Analyse issues and reputation  70 Step 3: Set engagement objectives  71 Step 4: Action plan for engagement  72 Step 5: Evaluation plan  74 The tools and templates  75 Conclusion  86 05 Pan-industry supply chain collaboration: An exemplar of solutions developed by and for the industry  89 Industry context  89 The application of good principles to address stormy waters  99 Stage 1: Planning  101 Stage 2: Contracting  102 Stage 3: Perform and pay  129 Conclusion  129 06 Commercial risk and pricing considerations associated with collaborative versus traditional contracting arrangements  131 Limitation of risk associated with different contract pricing or remuneration regimes  135 Understanding contractor or supplier risk  138 The joint alliance steering group concept versus more adversarial contractual provisions to safeguard against failure or default  139 Pa r t T w o   Case studies of exemplar historical collaborative practice  143 07 Case study 1: The Team Marine story – putting logic back into logistics  145 Background history  146 Why change?  146 Contents  The facts  148 Obstacles encountered and how they were overcome  150 Cost allocation and management mechanisms jointly developed, and the benefits of Team Marine  151 Scale of combined activity, and the benefits and results achieved under Team Marine  152 Why the Team Marine initiative succeeded: Core shared belief system and principles  153 Concluding reflections  154 08 Case study 2: Captain – the impossible dream  157 Background history  157 The post-licence award challenge  158 Resilience and the development of new technology  159 Unconventional and unorthodox project route achieved through collaboration  160 Formation of a new collaborative contractor consortium  161 A novel fast track project approach  161 Piecing together the jigsaw  163 Conclusion  164 09 Case study 3: Building supply chain functional excellence through collaboration with internal partners  165 Background  166 A new style of leadership  167 Initial diagnostic  168 Structured methodology  169 A new vision for PSCM excellence through joined up collaborative thinking and business interface  180 Conclusion  186 10 Case study 4: Envoi – value creation through collaborative outsourcing of acquisition and divestment in the upstream E&P sector  187 A&D statistics  188 The keys to successful specialist consultant collaboration  189 The value of specialist consultants  192 Project development and execution process  193 A&D outsourcing collaboration: Case studies  195 ix 258 Further Reading Hawkins, DE (2006) Corporate Social Responsibility: Balancing tomorrow’s sustainability and today’s profitability, Palgrave Macmillan, London Hawkins, DE (2006) The Bending Moment: Energizing corporate business strategy, Palgrave Macmillan, London Hawkins, DE (2013) Raising the Standard for Collaboration: Harnessing the Benefits of BS 11000 collaborative business relationships, The BSI Standards Limited Hawkins, DE and Shan, R (2005) Sun Tzu and the Project Battleground: Creating project strategy from ‘the art of war’, Palgrave Macmillan, London Humphries, A and Gibbs, R (2010) Collaborative Change: Creating high performance partnerships and alliances, SC: CreateSpace Independent Publishing Platform, Amazon International Standards Organization (ISO) (nd) ISO 44001: Collaborative business relationships standard, The BSI Standards Limited Lank, E (2005) Collaborative Advantage: Organisations win by working together, Palgrave Macmillan, London Lipnack, J and Stamps, J (1997) Virtual Teams: Reaching across space, time, and organizations with technology, John Wiley & Sons, New York LOGIC (2018) Leading Oil and Gas Industry Competitiveness: Part of Oil & Gas UK Industry Association, Aberdeen and London Partnership Sourcing Future Connections Partnership Sourcing Vision 2010 Springer, ML and de Bock, J (2005) Sustainable Logistics and Supply Chains: Integral approach, European Commission, Brussels Springer, MJS (2014) Enabling Horizontal Collaboration, Briefs in Operational Research series, Springer, New York Tate, W (2009) The Search for Leadership: An organisational perspective, Triarchy Press, Devon Tompkins, JA (2003) No Boundaries: Break through to supply chain excellence, Tompkins Press, NC Waller, A (2018) Collaboration Across Supply Chains: Case studies on working together for sustainable business performance, Kogan Page, London Useful websites Association for Project Management: https://www.apm.org Association of Cost Engineers: https://www.acoste.org.uk/ Chartered Institute for Procurement and Supply: https://www.cips.org.uk East of England Energy Group(contractor trade association): https://eeegr.com/ Energy Industries Council: https://the-eic.com Institute for Collaborative Working: www.instituteforcollaborativeworking.com/ Further Reading International Institute for Advanced Purchasing and Supply: www.iiaps.org/ Northern Offshore Federation Energy (contractor trade association): https://www.nofenergy.co.uk Oil & Gas Technology Centre: https://theogtc.com/ Oil & Gas UK: https://oilandgasuk.co.uk/ Robert Gordon University, Aberdeen: https://www.rgu.ac.uk/ Royal Institution of Chartered Surveyors: https://www.rics.org/ 259 260 THIS PAGE IS INTENTIONALLY LEFT BLANK 261 INDEX A&D see acquisitions and divestments Stage Life Cycle Model see CRAFT Stage Life Cycle Model ability and leadership  16–18 acquisitions see acquisitions and divestments; mergers and acquisitions acquisitions and divestments (A&D) Africa case study  199–200 consultants 189 Envoi case study  187–204 failure 202–204 marketing  190–192, 203–204 North Sea case study  195–199 outsourcing 195–203 planning 190 project development and execution process 193–195 statistics 188–189 success 200–202 action planning  72–74 ‘ACX’ case study  165–186 background 166–167 business interface  182 capability building  178–179, 181 demand planning  174 gap analysis  171, 175–176 initial assessment  168 key contracts  174–175 leadership 167–168 new vision  180–186 Pareto analysis  175–178 phased benefits  183 structural building  178–180 structured methodology  169–180 value realization  184 adoption of ISO 44001  57–59 Advanced Registration/Capability Profiles 112–114 Africa ‘ACX’ case study  165–186 Envoi Case study  199–200 alignment, stakeholder engagement  63 alliances  19–20, 60, 145–155 AMI see area of mutual interest analysis contractor landscapes  31–35 issues 70–71 reputation  71, 77–78 risk 11–13 arbitration 14–15 architectures of stakeholders  67–68 area of mutual interest (AMI)  assessment internal 44–45 leadership 16–18 reputation  71, 77–78 risk 11–13 attitude and leadership  16–18 attractiveness profiling  28–31 attributes of relationships  automation in IT procurement  243–245, 250–251 basic supplier capability Gantt charts  112–114 benchmarking  58, 119–120, 126, 128 benefits of ISO 44001  57–59 Team Marine case study  151–153 best practice pharmaceuticals supply  238 UK oil and gas  99–129 big data, oil and gas exploration  228 biomedical life sciences case study  231–240 background 232 good supply practices  238 methodology 233–235 perceived challenges  233 results 235–239 bottleneck relationships  24–25 business interface, ‘ACX’ case study  182 bystanders 69 capability building, ‘ACX’ case study  178–179, 181 capability Gantt charts  112–114, 124 Captain project case study  157–164 consortium 161–164 drivers 158–161 fast track approach  161–162 funding 160–161 obstacles 158–159 capturing feedback  121–125 categories of stakeholders  61–62 262 Index Central Communities Investment Fund (CIF) 209 certification 59 challenges see obstacles checklists, readiness  9–10 CIF see Central Communities Investment Fund client/contractor landscape of UK oil and gas 90–93 clients perspective of  23–25 profiling 28–31 collaborative frameworks  19 principles 38–41 see also CRAFT Stage Life Cycle Model commercial risk  131–141 see also risk commodities planning & forecasting  211–212 commonality 57 competitive tendering  134 compliance, food aid case study  209–210 composite rates  135, 137 confidentiality 63 consortia, Captain project  161–164 consultants keys to success  189 value of  192–193 continuing relationships  50–52 contracting debriefing and feedback  105–106, 114–128 FPAL  100–102, 108–128 industry mutual hold harness deeds  104–105 LOGIC model forms  102–104, 115 master deeds  106–107 negotiation 134–135 performance profiles  114–128 pre-qualification 108–128 remuneration mechanisms  135–138 tendering documentation  104 UK oil and gas reforms  102–128 contractor landscape analysis  31–35 contractors consortia 161–164 perspective of  26–27 risk 138–139 core/strategic relationships  26–27 corporate social responsibility (CSR)  6–7 corruption 210 Cost Reduction Initiative for the New Era (CRINE)  95–97, 145–155 costs, UK oil and gas  95–97 CRAFT Stage Life Cycle Model  37–54 exit strategy activation  52–54 internal assessment  44–45 ISO 44001 integration  40, 195 knowledge 43–44 operational awareness  41–42 partner selection  46–47 principles 38–41 staying together  50–52 value creation  50, 195 working together  47–49 CRINE see Cost Reduction Initiative for the New Era critical relationships  23–25, 174–175 cross-partnership development areas  20 CSR see corporate social responsibility culture  10, 13–16, 153–154 customer journey  251 customer profiling  28–31 day rates  135, 137 deal psychology  191 debriefing in UK oil and gas sector  105–106 default risk management  139–141 demand planning  174 Democratic Republic of the Congo (DRC) case study  207–221 background 207–208 challenges 209–210 commodities planning, forecasting & funding 211–212 distribution 217–219 needs 210–211 transportation  208–209, 213–216 warehousing 217 deselection of suppliers  112 desired reputation  78 development relationships  26–27 development of stakeholder engagement programmes 64–75 digital procurement  241–255 automation  243–245, 250–251 KnowledgeBus/KnowledgeKube 245 online marketplaces  250 Probrand 241–245 Progora  242–243, 246–254 public sector  251–254 transformation 249 universities 253–254 digital transformation  249 direct negotiation  134 disengagement  15, 52–54 disputes 14–15 distribution collaboration  217–219 DRC see Democratic Republic of the Congo drivers of collaboration  60, 94–99 Captain project case study  158–161 Team Marine case study  146–150 Index embedding procurement  252–253 engagement levels of  78–80 objectives  71–72, 74–75 platform selection  80–82 relationship building template  85 relationship management  6–7 reputation risk response plan  84 road map template  86 stakeholders 55–87 action planning  72–74 ‘ACX’ case study  168–178 development process  64–75 evaluation plans  74–75 generic guide  65 identification 66–70 issues analysis  70–71 key performance areas  74–75 mapping 68–69 minimum requirements  62–63 objectives  71–72, 74–75 pharmaceuticals case study  233–239 quality standards  63 relationship/health reviews  69–70, 75–77, 83 environments and stakeholders  62 Envoi case study  187–204 African project  199–200 North Sea project  195–199 project development and execution process 193–195 European Utilities legislation  97–98 evaluation plans, stakeholder engagement 74–75 exit strategy activation  52–54 exploitable relationships  26–27 exploration and production (E&P) ‘ACX’ case study  165–186 Captain project  157–164 Envoi case study  187–204 failure  11, 139–141 acquisitions and divestments  202–204 project marketing  203–204 failure mode analysis  235–238 fast track approach, Captain project  161–162 feedback data capture  121–125 on failed bids  105–106 performance profiles  114–128 Field Trial Programmes in OGTC  226 First Point Assessment (FPAL)  100–102, 108–128 capability Gantt charts  112–114, 124 performance profiles  114–128 purposefulness 110–111 fit-for-purpose structures  47–49, 169–180 Flightshare 106 floating production, storage and offloading vessels (FPSO)  161–164 fluctuations in oil prices  93, 94 followers 69 Food for the Hungry case study  207–221 background 207–208 challenges 209–210 commodities planning, forecasting & funding 211–212 distribution 217–219 needs 210–211 transportation  208–209, 213–216 warehousing 217 FPAL see First Point Assessment FPSO see floating production, storage and offloading vessels funding, Captain project  160–161 funnel concept, tendering  123 gap analysis, ‘ACX’ case study  171, 175–176 gas and oil sector  89–130 ‘ACX’ case study  165–186 big data  228 Captain project  157–164 client/contractor landscape  90–93 collaboration drivers  94–99 contracting 102–128 CRINE initiative  95–97 debriefing and feedback  105–106 duplication elimination  106–108 FPAL  100–102, 108–128 industry context  89–93 industry mutual hold harness deeds  104–105 LOGIC model forms  102–104, 115 operating costs  95–97 performance profiles  114–128 perform and pay  129 Piper Alpha disaster  98–99 planning 101–102 pre-qualification 108–128 robotics development  228 sector dynamics  92–93 Supply Chain Code of Practice  99–129 Team Marine case study  145–155 Technology Centre case study  223–229 good supply practices  238 governance, public sector  252 governance frameworks, stakeholders  67–68 guaranteed maximum price (GMP) contracts  135–136, 138 health reviews, stakeholder relationships  69–70, 76–77, 83 helicopter transportation  91–93, 106 263 264 Index Helimet 108 high-level structure, ISO 44001  39 humanitarian relief case study  207–221 background 207–208 challenges 209–210 commodities planning, forecasting & funding 211–212 distribution 217–219 needs 210–211 transportation  208–209, 213–216 warehousing 217 hybrid payment regimes  135–136, 138 Icomm Technologies  243 ICW see Institute for Collaborative Working identification of stakeholders  66–70 IMHH see industry mutual hold harness deeds impact risk assessment  13 incentivized contracts  135, 138 indicators for collaboration  indirect negotiation  134 industry context for UK oil and gas  89–93 industry mutual hold harness deeds (IMHH) 104–105 influencers 69 initial engagement  46–47 Institute for Collaborative Working (ICW) 38 integration, stakeholder engagement  63 intellectual property  59 internal assessment  44–45, 168 internal partnering case study  165–186 see also ‘ACX’ case study ISO 44001  37–54 benefits of adoption  57–59 certification 59 high-level structure  39 principles 38–41 value gains  60, 195 see also CRAFT Stage Life Cycle Model issues analysis  70–71 John Shaw drilling rig  160 joint alliance steering groups  139–141 joint relationship management plans (JRMP) 49 joint ventures  19–20, 60 JRMP see joint relationship management plans key contracts, ‘ACX’ case study  174–175 key performance areas (KPAs), stakeholder engagement 74–75 knowledge, CRAFT Stage Life Cycle Model 43–44 KnowledgeBus/KnowledgeKube 245 KPAs see key performance areas landscape analysis  31–35 leadership  16–18, 45, 139–141, 167–168 leading oil and gas industry competitiveness (LOGIC) 94–95 model forms  102–104, 115 tendering documentation  104 levels of engagement  78–80 leverage relationships  24–25 liability 104–105 limiting risk  135–138 liquidated damages  140 LOGIC see leading oil and gas industry competitiveness Lord Cullen Enquiry  98–99 lump sum payment  135–136 M&A see mergers and acquisitions management fees  135 mapping stakeholders  68–69 marketing acquisitions and divestments  190–192, 203–204 failure 203–204 Master Deeds  106–107 memorandum of understanding (MOU)  Mercato  242–243, 246–254 mergers and acquisitions (M&A)  MOU see memorandum of understanding negotiation 134–135 non-intrusive inspection (NII) technologies 228 nuisance relationships  26–27 objectives of stakeholder engagement  63, 71–72, 74–75 obstacles biomedical life sciences/ pharmaceuticals 233 Captain project  158–159 humanitarian relief case study  209–210 Team Marine case study  150 Official Journal of the European Communities (OJEC)  97–98 OGTC see Oil and Gas Technology Centre oil and gas sector  89–130 ‘ACX’ case study  165–186 big data  228 Captain project  157–164 client/contractor landscape  90–93 collaboration drivers  94–99 contracting 102–128 CRINE initiative  95–97 Index debriefing and feedback  105–106 FPAL  100–102, 108–128 industry context  89–93 industry mutual hold harness deeds ­ 104–105 LOGIC model forms  102–104, 115 operating costs  95–97 performance profiles  114–128 perform and pay  129 Piper Alpha disaster  98–99 planning 101–102 pre-qualification 108–128 price volatility  93, 94 robotics development  228 sector dynamics  92–93 Supply Chain Code of Practice  99–129 Team Marine case study  145–155 Oil and Gas Technology Centre (OGTC) 223–229 background 223–224 current programmes  226–228 value creation  224–226 oil price fluctuations  93, 94 OJEC see Official Journal of the European Communities online marketplaces  250 operating costs, UK oil and gas  95–97 operational awareness  41–42 opportunistic arrangements  19 opportunities 11 organizational thinking trends  38 outsourcing 59 acquisitions and divestments  195–203 Envoi case study  187–204 pan-industry collaboration  89–130 see also oil and gas sector parent company guarantees  140 Pareto analysis  175–178 partner fit triangle  20–21 partnering  19–21, 46–47 drivers 60 humanitarian relief case study  211–219 internal 165–186 joint steering groups  139–141 negotiation 134–135 pricing mechanisms  135–138 risk 131–141 partner selection  46–47 PDEP see project development and execution process performance bonds  140 performance feedback profiles  114–128 benchmarking  119–120, 126, 128 data capture  121–125 perform and pay  129 personnel on board (POB) monitoring  107–108 perspectives 23–35 clients 23–25 contractor landscape analysis  31–35 contractors/suppliers 26–27 customer profiling  28–31 pharmaceuticals case study  231–240 background 232 good supply practices  238 methodology 233–235 perceived challenges  233 results 235–239 phased benefits, ‘ACX’ case study  183 Piper Alpha disaster  98–99 planning acquisitions and divestments  190, 200–202 UK oil and gas reforms  101–102 POB see personnel on board monitoring port operations coordination  214–217 positioning collaborative 18–20 of stakeholders  68–69 post-license award, challenges  158–159 pre-qualification 108–128 pricing mechanisms  131–132, 135–138 probability of risk  13 Probrand 241–245 procurement automation  243–245, 250–251 customer journey  251 digital, case study  241–255 embedding 252–253 KnowledgeBus/KnowledgeKube 245 online marketplaces  250 Probrand 241–245 Progora  242–243, 246–254 public sector  251–254 strategic 253 transformation 249 universities 253–254 procurement and supply chain management (PCSM) 165–186 demand planning  174 gap analysis  171, 175–176 key contracts  174–175 KnowledgeBus/KnowledgeKube 245 Pareto analysis  175–178 see also ‘ACX’ case study profiling, customers  28–31 Progora  242–243, 246–254 project development and execution process (PDEP) 193–195 public sector procurement  251–254 purchasers, UK oil and gas industry  100–102 265 266 Index readiness checklist  9–10 reimbursable contracting  135–136 relationship building template  85 relationship health  69–70, 76–77, 83 relationship management plans (RMP)  44, 49 relationship reviews, stakeholders  69–70, 75–77, 83 relationships attributes 8 continuing  50–52, 59 contractor landscape analysis  31–35 customer profiling  28–31 disengagement 52–54 drivers of  60 fit-for-purpose structures  47–49 indicators 8 leadership  16–18, 139–141 management 4–7 negotiation 134–135 partner fit triangle  20–21 partner selection  46–47 positioning 18–20 pricing mechanisms  135–138 risk  11–13, 131–141 supply chain management  34–35 types of  23–28, 60, 134 reputation analysis  71, 77–78 reputation risk response plans  84 retention monies  140 risk 131–141 assessment 11–13 contractors/suppliers 138–139 core concepts  default/failure protections  139–141 joint steering groups  139–141 limitation 135–138 relationships 11–13 risk reward schemes  135, 138 RMP see relationship management plans road maps, stakeholder engagement  86 robotics development  228 routine relationships  24–25 rules of disengagement  15 SCCoP see Supply Chain Code of Practice schedules of composite rates  135, 137 SCM see supply chain management sector dynamics, UK oil and gas  92–93, 94 selecting partners  46–47, 80–82 shapers 69 Share Fair  102 single sourcing  134 skills shortages  11 sole sourcing  134 spend management Progora 246–248 public sector  251–252 stakeholders architectures 67–68 categories 61–62 engagement 55–87 action planning  72–74 ‘ACX’ case study  168–178 development process  64–75 evaluation plans  74–75 generic guide  65 key performance areas  74–75 minimum requirements  62–63 objectives  71–72, 74–75 pharmaceuticals case study  233–239 platform selection  80–82 quality standards  63 relationship building template  85 reputation risk response plan  84 road map template  86 environments 62 identification 66–70 issues analysis  70–71 levels of engagement  78–80 mapping 68–69 relationship/health reviews  69–70, 75–77, 83 reputation analysis  71, 77–78 staying together  50–52 steering groups, joint  139–141 strategic procurement  253 strategic relationships  26–27 structural building, ‘ACX’ case study  178–180 structured methodology, ‘ACX’ case study 169–180 success acquisitions and divestments  200–202 consultant collaboration  189 factors for  14–15 Team Marine case study  153–154 suitability assessment  17 suppliers capability Gantt charts  112–114, 124 perspective of  26–27 risk 138–139 Supply Chain Code of Practice (SCCoP)  99–129 benchmarking  119–120, 126, 128 contracting 102–138 debriefing and feedback  105–106, 114–128 industry mutual hold harness deeds  104–105 key stages  111 performance feedback profiles  114–128 Index perform and pay  129 planning 101–102 pre-qualification 108–128 supply chain management (SCM), role of 34–35 supply chain perspectives  23–35 arrangement forms  23–28 clients 23–25 contractor landscape analysis  31–35 contractors/suppliers 26–27 customer profiling  28–31 supply chains, definition  supply/service arrangements  18–19 sustainability  47–49, 59 target setting  50 Team Marine case study  145–155 background 146 benefits 151–153 drivers 146–150 obstacles 150 reasons for success  153–154 technological development Captain project  159 Oil and Gas Technology Centre  226–228 TechX accelerator, OGTC  226 tendering competitive 134 feedback on failure  105–106 funnel concept  123 performance feedback  114–128 pre-qualification 108–128 UK oil and gas reforms  104 termination 140 Texaco, Captain project  157–164 third sector  case study  207–221 background 207–208 challenges 209–210 commodities planning, forecasting & funding 211–212 distribution 217–219 needs 210–211 transportation  208–209, 213–216 warehousing 217 transportation helicopters  91–93, 106 humanitarian relief case study  208–209, 213–216 trust  14, 59 UKCS see United Kingdom Continental Shelf UKOOA see United Kingdom Offshore Operators Association United Kingdom Continental Shelf (UKCS) oil and gas sector  89–130 big data  228 Captain project  157–164 client/contractor landscape  90–93 collaboration drivers  94–99 contracting 102–128 CRINE initiative  95–97 debriefing and feedback  105–106, 114–128 duplication elimination  106–108 FPAL  100–102, 108–128 industry context  89–93 industry mutual hold harness deeds  104–105 LOGIC model forms  102–104, 115 North Sea exploration case studies  145–164, 195–199 operating costs  95–97 performance profiles  114–128 perform and pay  129 Piper Alpha disaster  98–99 planning 101–102 pre-qualification 108–128 robotics 228 sector dynamics  92–93 Supply Chain Code of Practice  99–129 Team Marine case study  145–155 Technology Centre case study  223–229 United Kingdom Offshore Operators Association (UKOOA)  94 unit rate contracting  135, 137 universities, procurement  253–254 value creation  50, 60 acquisitions and divestments  187–204 ‘ACX’ case study  184 consultants 192–193 Envoi case study  187–204 Oil and Gas Technology Centre  224–226 vertical relationships clients perspective  23–25 contractors/suppliers 26–27 volatility of oil prices  93, 94 voluntary sector  warehousing 217 weather information  108 website design  250–251 wheel of collaborative involvement  34 win–win approach  15–16 working together  47–49 267 268 THIS PAGE IS INTENTIONALLY LEFT BLANK 269 THIS PAGE IS INTENTIONALLY LEFT BLANK 270 THIS PAGE IS INTENTIONALLY LEFT BLANK 271 THIS PAGE IS INTENTIONALLY LEFT BLANK 272 THIS PAGE IS INTENTIONALLY LEFT BLANK ... Collaborative Principles for Better Supply Chain Practice Value creation up, down and across supply chains Norman K McLennan iv Publisher’s note Every possible effort has been made to ensure that the information... explore the ‘art of the possible’ – the collaborative principles that will unlock better business practice and enable value creation – up, down and across supply chains The ‘art of the possible’ theme... rationale for collaborative business practices across supply chains and why collaboration can be the jewel in the crown for organizations  02 Collaborative arrangements: Different supply chain perspectives,