pioneer supply chain management - ofs portal · *use of catalog item *non-catalog item entry...

PIONEERSupply Chain Management

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FORWARD-LOOKING STATEMENTS

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PIONEER NATURAL RESOURCES

$20+ Billion Enterprise

Value

$2.8 Billion planned Capex

15%+ Forecasted Production

Growth

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PIONEER’S GROWTH MODEL

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HOW CAN SUPPLY CHAIN MOVE THE NEEDLE?

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2014 2015 2016 2017 Future

Operational Spend Managed by SCM

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Bridge the gap between execution and purchasing

HOW CAN SUPPLY CHAIN MOVE THE NEEDLE?

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GAIN CUSTOMERS’ TRUST!

Understand customers’ needs

Staff up to bridge the gap

Know the business

Implement solutions

HOW CAN SUPPLY CHAIN MOVE THE NEEDLE?

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PARTNER UP WITH YOUR SUPPLIERS

HOW CAN SUPPLY CHAIN MOVE THE NEEDLE?

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HOW CAN SUPPLY CHAIN MOVE THE NEEDLE?

P-CardInvoice Only

Invoice Against Contract

Purchase Order

Catalogs

Increase maturity level

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*Use of catalog item

*Non-catalog item entry

Conduct sourcing

Create contract and load catalog

Create purchase

request and get

approval*

Create and transmit purchase

order

Process receipt /

Field ticket

Verify invoice

against PO & receipt

Process payment

Catalog with Purchase Order

Conduct sourcing

Create contract

Create purchase

request and get

approval*

Create and transmit purchase

order

Process receipt /

Field ticket

Verify invoice

against PO and receipt

Process payment

Non-Catalog with Purchase Order

Conduct sourcing

Create contract and get approval

Verify invoice against contract

Process payment

Invoice directly against contract

Verify invoice / P-Card Bills

Process payment

Invoice only

Process receipt /

Field ticket

P-Card only

Identify need

EVOLVE TO BE PROCESS-ORIENTED

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SUPPLY CHAIN AT PIONEER HAS BEEN TRANSFORMED TO ALIGN WITH THE BUSINESS AND BECOME A STRATEGIC PARTNER

TRANSFORMATIONAL OPPORTUNITIES

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2014 2015 2016 2017 Future

Managed Spend Curve Advanced Strategies

Strategic Focus

Tactical Focus

SCM Transformation Curve

Supply Chain Sophistication

Value Delivered

What are we working on?

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MORE TRANSFORMATION!!

UPDATING THE TOOL K IT TO ALLOW:

• SUPPL IER L IFECYCLE MANAGEMENT

• CONTRACT/WORK ASS IGNMENT MANAGED THROUGH KP I s

• CALL CENTER

• ELECTRONIC F IELD T ICKETS

• INVO ICE VAL IDAT ION AND CONTRACT COMPL IANCE

• INCREASE SPEND V I S IB I L ITY

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P2P PIONEER/SUPPLIER COMMUNICATION TOUCH POINTS

Bid

PIONEER SUPPLIER

SCMAssetService companyCorporate group

PaymentInvoiceElectronic

Field TicketsWork Execution

AribaACL

TreasuryAPAssetSCM

AssetAPSCM

AssetService companyCorporate groupSCM

SCMAPContracts

RiskHSEDOTLegalTreasurySecurity

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ENABLING OPS AND MAINTENANCE

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LATEST IMPROVED FIELD TICKETField ticket summary includes tabular review and quick button menu

Electronic Field Tickets

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ELECTRONIC FIELD TICKETS

Attachment view

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DATA

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ANALYTICS

-80% -60% -40% -20% 0% 20% 40%

Well stimulation

Contract drilling

Casing & tubing

Rentals

Mud & chemicals

Labor & transport

Water

Directional services

Supervision

Wireline

Fuel

Cement services

All other cost

Changes in Well Costs Due to Prices, Efficiencies and Well Design

Looking Forward

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WHAT IS IMPORTANT?

SUPPLIERS, SUPPLIERS, SUPPLIERS

Reliability

Efficiency

Service

Quality

Partner ship

Cost

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ENSURE THE TRANSFORMATION IS SUSTAINABLE

Solid Processes –not people

based

Metric Driven Results

Partner with

suppliersCommon

Goals Across

Enterprise

Standardization

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SCM’S ARCHITECTURE

DATA

Flex

ibili

ty

Entr

epre

neur

ship

Alig

nmen

t

Strategy