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Strictly Private & Confidential, © Copyright Bibby Offshore
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Strictly Private & Confidential, © Copyright Bibby Offshore
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2017SHARE FAIREuan Stevenson – Commercial Team Lead
Fraser Grant – Senior Contracts Engineer
Strictly Private & Confidential, © Copyright Bibby Offshore
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Strictly Private & Confidential, © Copyright Bibby Offshore
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EMERGENCY EXITS
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Strictly Private & Confidential, © Copyright Bibby Offshore
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AGENDA
• Unlocking Subsea Productivity
• Business Excellence
• Challenging Commercial Models
PART 1 – VALUE ADDING INITIATIVES
• Working with Bibby Offshore
• Our Procurement Process
PART 2 – OUR SUPPLY CHAIN AND
ENGAGEMENT • Current Market
• Forward Work Plan
• What we need from you
PART 3 – CURRENT MARKET FOCUS AND
OPPORTUNITIES
INT
RO
DU
CT
ION
WH
O T
O C
ON
TAC
T
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INTRODUCTION – BIBBY BACKGROUND
Established in 2003, Bibby Offshore is part of Bibby Line
Group
A leading subsea services provider
Core geography of North Sea and international bases in
Norway and Houston
Over 400 projects completed
Over 9000 vessel days delivered since 2010
Global fleet of four vessels
Fleet of 12 advanced electric modern ROVs
VISION
To be the subsea life of field partner of choice
MISSION
Bibby Offshore will be acknowledged as the leading
subsea services provider delivering safe and quality
performance to all stakeholders
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WHAT WE DO
• Integrated subsea service offering encompassing
project management, design, engineering,
procurement, installation and commissioning activities
• Subsea work sites accessed using divers, remote
intervention technology or a combination of both
– Diver operations up to a depth of 300m
– Comprehensive suite of remote intervention tools for
depths up to 3,000m
• Key services delivered:
– Inspection, repair and maintenance of subsea assets
– Installation and commissioning of new subsea
architecture
– Decommissioning
– Renewables
Leading subsea contractor with an outstanding track
record in safety and efficiency – Winner of Oil & Gas UK
Offshore Safety Awards – Workforce Engagement
Category for Team DSV Bibby Topaz
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PART 1 - VALUE ADDING INITIATIVES
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UNLOCKING SUBSEA PRODUCTIVITY
Collaboration with supply chain - new ways of working
Repeated pressure on supply chain to cut rates
Independent Campaigns = Independent Costs
Non Productive Time – borne to each project
USP (Unlocking Subsea Productivity) collaborative shared campaign approach
Current Climate:
High cost base and short IRM scopes not viable
Challenge:
Behaviours, current mind set, buy-in
Opportunity:
Efficient, sustainable campaign management, cost savings
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Strictly Private & Confidential, © Copyright Bibby Offshore
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BUSINESS EXCELLENCE
Key Objectives
• Business excellence and improvement projects
• Delivering sustainable business and process improvement
• Facilitate the delivery of client projects from initial scope through to
completion and benefits realisation
Define Measure Analyse Improve Control
• Select strategic issue to
address
• Project Charter
• Form the team
• Define SIPOC
• Verify performance with
data
• Agree team contract
• Define the review
process
• Flowchart process
• Streamline &
standardise
• Agree customer
requirements
• Select key measures
• Define data
collection
• Listen to the voice of
the process
• Investigate waste
• Create pull & flow
• Balance the work
• Prioritise root causes
• Collect data to verify
causes
• Select root causes to
address
• Define possible
solutions
• Select solutions to test
• Plan & carry out tests
• Study the results of
tests
• Define next steps to
take
• Determine
competency
• Implementation plan
• Communication plan
• Monitor Plan
• Review
• Deploy standardised
improvements
• Monitor process and
react appropriately
• Review conclusions and
lessons learned
• Training
• Define future plans
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CHALLENGING CURRENT COMMERCIAL MODELS
•Supply Chain Initiatives
– Preferred contractor models
– Encouraging collaboration between
complimentary service providers to maximise
efficiency and value for money
– Cross training of supplier personnel
– Integrated use of back deck plant and
equipment
– Training of Bibby personnel in use of Supplier
Equipment
– Risk and Reward Models
– Encouraging new technology
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Strictly Private & Confidential, © Copyright Bibby Offshore
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PART 2 - OUR SUPPLY CHAIN AND
ENGAGEMENT
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WORKING WITH BIBBY OFFSHORE
We recognise:
• The important role our suppliers play in the successful
development of our business
• Having strong relationships with our suppliers is
fundamental to delivering excellent service to our clients
We expect our chosen suppliers to:
• Provide safe, efficient and cost effective solutions;
• Be kind to the environment;
• Be focused on delivery;
• Be ethical and fair;
• Share our Core Values
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Strictly Private & Confidential, © Copyright Bibby Offshore
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SUPPLY CHAIN OVERVIEW
8000 Purchase Orders raised per
year
Contracted with more than 750 suppliers in
the last 2 years
47 Active Frame Agreements for
procurement
Circa £51m supplier expenditure in 2016; £65m 2017 to date
6 key services potentially up for renewal in 2018
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OUR PROCUREMENT PROCESS
1. Identifying a requirement for third party support
2. Preparation of Scope of Work / Services and collate ITT documentation
3. Definition of commercial strategy
- Pricing and terms
- Market approach – single source, RFQ, ITT
- Always seeking best value solution
4. Identification of prospective suppliers
Bibby utilise FPAL in order to identify suppliers who:
- Supply the specific service/material
- Score highly in supplier reviews
-Supplier Engagement Sessions
-Non-FPAL registered suppliers may be considered subject to suitable pre-qualification exercise.
Determining Service Requirements
Prepare ITT/RFQ
Commercial Strategy review
Supplier selection
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PROSPECTIVE SUPPLIER PROCESS
1. Prior to Approval:
– Suppliers are required to comply with Bibby AB&C Policy
– Suppliers will be asked to complete a Due Diligence Questionnaire
– Suppliers may be subject to a QA/QC and Compliance Audit
2. Once approved:
– Periodic data reviews shall take place
– Regular performance review meetings (where appropriate)
– Supplier Engagement Sessions focusing on new / improved products
and services
Adherence to ABC Policy
Due diligence questionnaire
Initial AuditOngoing
performance reviews
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PART 3 - CURRENT MARKET FOCUS
AND OPPORTUNITIES
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CURRENT MARKET CHALLENGES
• Reactive due to an increase in “fix on failure” approach
• Reduced visibility of upcoming works
• Reduced turnaround for ITTs – both Client / Suppliers
• Tighter lead-in time to offshore execution
• Increased demand for lower costs with the same level of
service
• Mitigation measures:
– Use proven technology in an innovative way to deliver a safe,
high standard deliverable at a lower overall cost
– Utilise new technologies that offer efficiencies leading to a lower
overall cost
– Pre-agreed terms and conditions / Frame Agreements
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Strictly Private & Confidential, © Copyright Bibby Offshore
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FORWARD PLANS / OPPORTUNITIES 2018
• Technology innovations
• Engagement sessions
• Project specific procurement (Increase FA numbers)
• Well P&A
• Decommissioning
• Renewables
• Pre-commissioning
• Freight Forwarding
• Rigging
• Tools / Consumables
• Training Services
• Office based supplies and stationery
Business Procurement
Project Procurement
Supply chain focus
Forward plans (Target
Areas)
Description Potential
Renewal
Date
Potential
Tender date
Pre-commissioning Q4 2018 Q3 2018
Freight Forwarding Q4 2018 Q3 2018
Rigging Q4 2018 Q3 2018
Tools /
Consumables
Q2 2017 Q1 2018
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WHAT WE NEED FROM YOU
We would like to talk to you if you have:
– Excellent QHSE track records
– Rapid response capability
– Technical excellence and skilled personnel
– Proven systems and procedures to aid successful, cost-effective
project delivery
– Innovative solutions to offer both core business streams and USP
– A collaborative approach
– Proactive supplier engagement sessions and presentations suitable to
our business
– Are willing to work with Bibby and other suppliers to develop
sustainable cost savings
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Strictly Private & Confidential, © Copyright Bibby Offshore
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WHO TO CONTACT
• Anna Walls – Commercial Manager, Operations
• Euan Stevenson – Commercial Team Lead
• Fraser Grant – Senior Contracts Engineer
• Vikki Thom – Subsea Business Manager (USP enquiries / general business information)
• Email enquiries [email protected]