Improving the procurement activities efficiency of oil companies based on benchmarking

Abstract

The article presents the results of the authors' scientific work aimed at developing a methodology for internal and external benchmarking of procurement activities for companies in the oil and gas industry. The categorization of the types of benchmarking is carried out and those that are applicable for the development of benchmarking methods in the procurement of oil companies are highlighted. In order to develop a methodology for benchmarking procurement activities, the general concept of benchmarking was transformed for industry conditions and functional features of procurement in an oil company. The process for the implementation of external benchmarking of procurement activities has been developed. The key indicators of operational efficiency and labor productivity are proposed for the stage of selection of industry competitors. At the stage of comparison, it was proposed to compare the elements, tools and indicators of the procurement logistics for oil companies. The internal functional benchmarking is recommended for large oil companies and vertically integrated oil companies. In contrast to the external one, this is partner benchmarking, benchmarking for experience exchange. The process of implementation of internal benchmarking of procurement activities is proposed. For the stage named «Selection of subsidiaries-benchmarks», its own set of indicators is proposed. Unlike external benchmarking, the internal benchmarking is focused on borrowing the experience of improving procurement business processes in reference subsidiaries.