Project Overview
Our CPL team successfully led the procurement efforts for the EPCC of the DGFF at Mala Oilfield Facilities in South Sudan — a project that presented significant logistical and procurement complexities.
The remote location, coupled with severe seasonal access issues and international sanctions on South Sudan, created a highly challenging environment. Roads frequently became impassable during the rainy season, while sourcing materials involved navigating complex supply chains and client-specific requests for discontinued brands.
Through proactive planning and innovative logistics, our team ensured seamless procurement operations that supported the project’s timely progression.
Key Procurement Challenges
1. Remote Site Location
The project site was located in an isolated region with limited infrastructure, making the transportation of materials laborious and time-consuming.
2. Seasonal Accessibility Issues
Flooded roads during the rainy season rendered traditional ground transport impossible, requiring alternative logistics solutions.
3. Diverse Material Requirements
The project scope included over ten Material Requisitions (MRs), covering a wide variety of items sourced from multiple manufacturers across various regions.
4. Client-Specific Requests for Obsolete Brands
The client required materials from older, discontinued brands, necessitating an extensive market survey to source these or find compliant alternatives.
5. Sanctions Impact
Sanctions on South Sudan caused hesitation among manufacturers. Our team had to carefully manage supplier relationships to ensure legal compliance and maintain the flow of materials.
Procurement Strategy
Alternative Transportation Plans
- Utilized boats and cargo aircraft during the rainy season to maintain uninterrupted material delivery.
Material Classification and Grouping
- Grouped materials based on manufacturer location and delivery timeline to streamline procurement and logistics.
- Simplified coordination and optimized shipping processes.
Consolidated Shipping
- Shipped grouped materials together in single containers, reducing costs and improving efficiency.
- Achieved a 20% reduction in total transportation expenses through consolidation.
Market Survey for Obsolete Brands
- Conducted a thorough global market search to locate discontinued brands or suitable alternatives meeting client specifications.
- Engaged manufacturers and suppliers for tailored solutions.
Navigating Sanctions
- Maintained open communication with manufacturers to provide legal compliance assurances.
- Sourced materials from alternative, compliant suppliers when required.
Results & Achievements
1. Cost Savings
- Consolidated shipping and material grouping strategies led to a 20% reduction in transportation costs.
2. Timely Delivery
- Despite extreme logistical challenges, all materials were delivered on schedule, ensuring no delays to the construction timeline.
3. Client Satisfaction
- Fulfilled the client’s specific requests for obsolete materials through comprehensive market research and strategic sourcing.
4. Effective Risk Mitigation
- Alternative transportation methods ensured seasonal accessibility issues did not disrupt procurement.
5. Streamlined Processes
- Material classification and centralized shipping minimized coordination efforts and simplified logistics management.
Conclusion
This project illustrates the power of strategic procurement in overcoming complex logistical challenges. Through innovative transportation solutions, consolidated shipments, and effective material classification, we not only delivered significant cost savings but also maintained project timelines in a highly challenging environment.
Our success in navigating market constraints, sanctions, and client-specific requirements showcases the critical role of smart procurement planning in ensuring the seamless execution of complex oilfield projects.