AM-99-37 STRATEGIC SOURCING: HOW TO ENHANCE VALUE THROUGH SUPPLY CHAIN MANAGEMENT

Description:

This paper will discuss the opportunities of reducing costs to a refinery operator’s bottom line by contracting for services utilizing a sourcing methodology Mobil calls Value-Based Costing (VBC). VBC is a total system cost approach that manages the internal and external supply chains of a particular service, while maintaining reasonable supplier profitability, high safety standards and positive supplier relationships. This subject is particularly important in today’s business environment of tight margins for both owners and suppliers.