Chevron Case Competition

Agenda

• Market Scenario Predictions
• Commercial Approach
• Operational Approach
• Supplier Relationship Recommendations
• Key questions for suppliers

Supplier Management Stategy

Cost Modeling

• Leveraging Chevron's buying power to better understand cost drivers behind the requested increase in cost as well as cost breakdowns of materials, components or services purchased.
• Initiating open discussions to understand if incorrect cost allocation models might be partially driving the increases

Supplier Offering Diversification

• Exploring the possibility of encouraging a supplier to diversify their offerings to cover both onshore and offshore requirements
• Leveraging supplier consolidation to get volume discounts that balance out cost increases

Supply Chain Finance

• Understanding supplier preference in terms of price vs payment terms
• "Lesser money, faster" vs "more money, slower"

Rethinking Supplier Management