About Petrofac

Petrofac is a leading international service provider to the oil and gas production and processing industry and a leading FTSE 250 company. Petrofac is a diverse company, operating out of seven operational centers in Sharjah, Abu Dhabi, Chennai, Mumbai, Aberdeen, Woking and Kuala Lumpur, plus a further 24 offices and several training facilities worldwide.

In particular, the Engineering & Construction Division delivers onshore and offshore engineering, procurement, construction, installation and commissioning services on a lump-sum basis. Projects can also be delivered on a reimbursable basis through our Engineering, Procurement and Construction Management (EPCm) service line, to align with our clients’ individual strategic objectives and operating models.


The situation

The Engineering & Construction Division was already leveraging on 670 categories of supply as a proxy of an internal Categorization for Goods and Services. However, such Categorization was requiring improvements under the following dimensions: a stronger “market view, differentiating by type of competition; more categories (even if low usage) to better differentiate the supplies; an easy-to-use “tree” structure and an easier to understand naming of the categories; clear and unique attributes to avoid inefficiencies and increase automation in the inputting of the orders; the introduction of a Strategic Level that allows to prioritize efforts and the most critical supplies.


SupplHi’s approach

SupplHi has been contracted to setup of the new Categorization of Goods and Services for the Engineering & Construction Supply Chain. The activities were articulated in two phases:

  • the diagnostic, international Benchmark and definition of the new Categorization Model

  • disciplinary “cherry-picking” of the categories of the SupplHi Standard Categorization required by Petrofac also based on the frequency of usage of the different Groups and Families and the analysis of ~105k Purchase Orders. This second phases was based on meetings with senior managers of the Supply Chain and Engineering functions and included the definition of the Strategic Levels for the new Categorization.

Key for the execution of these activities has been the utilization of the SupplHi Standard Categorization that is based on the industry best practices and has been developed across the years in collaboration with key Buyers, Vendors and associations.


The results

The new Categorization of equipment and services delivered for Petrofac’s Engineering & Construction and made of around 1.400 categories, strongly leveraged on the unique SupplHi Standard Categorization and allowed costs’ reduction and better purchases.

“I am writing to thank you on behalf of Petrofac for the quality of the service provided by SupplHi for the setup and delivery of the Product Categorization of Petrofac Goods and Services. Throughout the duration of the 6 months collaboration, you team has consistently proven to possess remarkable and matchless expertise in this niche line of business. We sincerely appreciate the professionalism, cooperation, and reliability demonstrated by yourself and your team to accommodate our requirements for the delivery of our customized Product Categorization. SupplHi has truly set itself apart from the competition, and we look forward to continuously developing this relationship in our future endeavours.” said Mr. Mr. Angelo Di Tata, Director – Supply Chain Management at Petrofac.