Establishing a Supply Chain Performance Baseline

A global oil and gas organization's product-centric supply chain group struggled to establish a performance baseline, hindering their ability to focus on redesign and improvement efforts. Managing multiple supply chain teams across various regions added complexity, leading to coordination, consistency, and alignment challenges.

A custom benchmarking study was conducted to address challenges, identifying key performance indicators (KPIs) and an external peer group for comparison. KPIs and supporting data were collected from internal teams and the external peer group for analysis. A current state baseline was established for each team, identifying inefficiencies and areas for improvement.

• Custom Benchmarking
• Key Performance Indicators
• Data Analysis and Insights
• Process Improvement
• Performance Benchmarking

The structured approach helped the organization identify inefficiencies, optimize processes, and implement effective strategies, enhancing alignment, collaboration, and overall performance. Improvement targets and pace were tailored to each team’s starting point, supporting long-term goals for standardization and consistency.

• Recognize different maturity levels across teams and tailor improvement goals to fit each team’s pace.
• Validate internal goals against relevant external peers to build trust and support future improvements.
• Define external peers based on work characteristics, not just identical organizations, to identify
  overlooked opportunities.