Striking a Balance Index

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1.2 Maximising Mutual Benefit with the Supply Chain and SMEs Progress to date: achievements and difficulties encountered CRINE and CRINE Network The CRINE initiative in 1993 (Cost Reduction In the New Era) and, subsequently, CRINE Network marked the successful start of a cross industry programme of cost reduction and value enhancement, involving the various parties - operating companies, contractors and suppliers - in co-operation for the first time. The results were implemented by the industry, with continuing issues being carried forward by LOGIC. In parallel with CRINE, closer working relationships were fostered between operators, contractors and suppliers through the increasing use of alliance style contracts, with risks and rewards being shared by the parties. Whole life costing The Whole Life Costing Project promotes an overall economic assessment of projects and guidance of procurement and contracting decisions, based on an analysis which includes full-life operating and maintenance costs, as well as initial capital investment. Sustainable Development Action Plan Generating new UK business We support the work of ITF and LOGIC, much of which is aimed at generating new UK business. We will review annually progress towards the PILOT goal of creating £1 billion of revenue from new businesses. Support for UK business overseas We will work with Trade Partners UK, formerly British Trade International (BTI)) to support UK exports. We have launched the Oil and Gas Business to Business Mentoring Initiative, backed by the DTI, to help SMEs develop a strategic view of future industry needs while giving ourselves, as operators, a better understanding of the companies providing us with supplies and services. Over the next 18 months, key individuals in ten oil companies will act as personal mentors to 20 SMEs across the country. Supply chain management We will support the provision of Supply Chain Management (SCM) seminars, SCM assessments of individual company supply chains and the delivery of a tailored SCM consultancy service to trading partners. Supply chain champions This initiative aims at addressing the different business climates of operators and the supply chain - the appropriateness of agreements reached at a time of low oil price, for example. We commit to identify and appoint individuals within our companies as supply chain champions to act as points of contact for resolution of supply chain difficulties and discussion of the common issues. E-commerce We will encourage promotion and development of e-commerce within the industry. The first step is to set up a series of workshops targeted at SMEs among suppliers and contractors to raise awareness and stimulate discussion.