Contracting and procurement
Shell collaborating with vendors as part of P&T’s improvement programme.
P&T manages the contracts with tens of thousands of vendors through which some $60 billion is spent per year on goods and services. As part of P&T’s improvement programme, the value derived from every dollar of that third-party spend needs to be increased. P&T therefore seeks to establish bold, new methods of collaboration with supply-chain partners. This will require greater trust among partners, and it will also require greater transparency.
P&T will show contractors how P&T processes have been modified to promote the capital and labour efficiency of its projects. But then P&T will want to see evidence that contractors’ performance incentives are also fully aligned to the same end. In every case, all parties must be willing to speak openly and listen attentively.
