Low-value Procurement (also known as tail spend) is usually considered as low risk and not strategic to be controlled, therefore the process is decentralized with huge total amount of spending and high risk to audit findings. This was a case study presented during our last Procurement Quarterly Meetup by Lily Sastriyanti, who is the Procurement Manager of CNOOC SES.
Lily has spent more than 10 years of assignment in Procurement Department working with Oil & Gas operators in Indonesia, specializing in the area of Contract Management and Cost Control. She has been leading her team in the development of Procurement Strategy for the required Services and Goods.
In her 30-minutes presentation, she presented a case study of her procurement transformation initiative. She shared her learnings on how she centralized the tender process for low-value procurement services to create more controllable spending, including challenges on the business process changes. The new centralized procurement process has resulted on the significant decrease of the number of SO per year, which in turn have contributed to improved compliance and avoidance of 75% yearly average spending cost of low value procurement to her company.
Lily has spent more than 10 years of assignment in Procurement Department working with Oil & Gas operators in Indonesia, specializing in the area of Contract Management and Cost Control. She has been leading her team in the development of Procurement Strategy for the required Services and Goods.
In her 30-minutes presentation, she presented a case study of her procurement transformation initiative. She shared her learnings on how she centralized the tender process for low-value procurement services to create more controllable spending, including challenges on the business process changes. The new centralized procurement process has resulted on the significant decrease of the number of SO per year, which in turn have contributed to improved compliance and avoidance of 75% yearly average spending cost of low value procurement to her company.