Outline of Strategies

To execute and perform the services

2.1

Supply Chain Management

Transber has custom supply chain solutions that help your business reach its full productivity and supply potential. We design a tailor-made program that will give your company the ability to overcome many of your current supply management issues. This custom tailored program will identify critical areas that are adding constraints to your supply chain. Once identified, together we will take corrective action to bring efficiencies back into your supply chain, reduce your landed cost, and more importantly, increase your efficiency and effectiveness.

Principles and Considerations

To deliver operations support contracting, Transber has adopted a philosophy, based on five underlying principles of effective Supply Chain Management: Transber role within the sector, the strategy and demand understood and optimized; Transparency clarity on all major cost and performance elements within the supply chain and their comparability with industry benchmarks; Continual improvement improve and spend to the highest level feasible and to the extent that this increases value. Leveraging of current and future demand across the industry to gain benefits today; Relationships distinctive relationships based on performance, market reality and knowledge development; access intellectual capital; and Sector strategies identified and agreed by stakeholders

2.2

Supply Chain Strategy

The strategy of Transber is to assess the functionality of the logistics systems (LS) of their clients, identify the problems in its operations, and propose solutions. LS problems can be divided into three basic types: 1. Design: Does the LS collect and report the essential data items for planning logistics operations? 2. Operation: Are reporting procedures followed; does data flow in a timely fashion?

3. Use: Are executives and operators following throughout the program actually using LS data for decision making?

Methodology

Using our experience, we work through five steps to answer these questions: What are the logistics systems problems? Which of the logistics problems are caused by the LS? Are the LS problems design problems, operation problems, or use problems? What are the solutions to the identified LS problems? The steps are: 1. Outline the logistics system as we know it. 2. Outline the design of the current LS as it exists on paper (Clients requirements through them scope of services and its procedures). 3. Identify design problems. 4. Assess functionality of the logistics system and the actual LS in the field. 5. Identify logistics system problems with LS causes and recommend solutions.

The tasks involved in completing the first three steps typically can be accomplished in the office. The fourth step requires travel outside the capital city. The last step is analytical (based on the first four) and can be completed anywhere.

Development of The Supply Chain Strategy

All of the strategy development and implementation stages for delivery of the Operations Support Project were separated according to capital value process (CVP) as follows: Appraise (data gathering): Demand analysis; cost analysis; and resources plan. Select (strategy development): Scope development; client interviews; subcontractor interviews; market research; strengths, weaknesses, opportunities and threats (SWOT) analysis; risk analysis; cost benchmarking; and sector strategies.

 Define (strategy approval): Internal strategy for a technical committee approval; and responsibilities sharing for agreement and partners approval. Execute (development): Development of the project, Invitation to new joint ventures partners to increase our services offer; approvals of subcontract services if it is necessary. Operate (performance management): Operation management; agree key performance indicators; and establish subcontract performance management process, if it is necessary. The CVP process is believed to provide the following main benefits: Greater clarity on the entire process (phasing); condenses the project schedule into defined tasks/actions with clear accountability; and identifies specific gates in the whole process where approvals are required to proceed. Diagram 1. The Capital Value Process

Appraise

Select

Energy and Oil Industry Requirements

Operate

Define

Execute