STRATEGICCONTRACT MANAGEMENT

Jorn BertensCategory Manager

Van Oord Procurement

BEST PRACTISES

“Strategic Contract Management”

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Index

Best Practises

Contract Management

Strategic Partnerships

Van Oord

Workshop

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A 20 year career in Van Oord in various positions

- Started as Technical Superintendent- Technical manager stationed in various locations worldwide.- Project manager Complex ship repairs, modifications and new buildings- Plant manager, technical, budget, ISM responsible for a part of the Van Oord Fleet and it’s crew- Currently in duo function

- Category Manager strategic commercial responsible for procurement Van Oord Fleet- Interim Procurement Manager at Acta Marine

Procurement Worldwide in various fields

Presenting: Van Oord

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Movie Vimeo

Maasvlakte 2

Gemini windpark

Palm Island - Dubai

2nd Suez channel

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Stelling 1 : Wie heeft er kennis van Strategic Contract Management?

NEE JA

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W

Stelling 2 : Wordt Strategic Contract Management toegepast binnen jou organisatie?

NEE JA

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Procurement Organization

ProjectProcurement

All project relatedprocurements bymeans ofSubcontracts,Project supplies,CAPEX and hiremain equipment

Staff Services

All NPR (Non-product relatedpurchase such

As staffing andrecruitment andstaff support(travel, lease/carhire, IT,accommodation

Materials &Related Services

All vessel relatedprocurement ofparts & services(ship materials,consumables, wear& tear, MRO) andfuel

Transport &Handling

All transport andMobilisation &Demobilisation,including shippingagents andequipment hire (land& marine)

OWPProcurement

All project relatedprocurements bymeans ofSubcontracts,Project supplies,hire mainequipment

Ship Management Department total Average annual OPEX Spend

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Annual average spend on repairs & modifications10% of total turnover

Fuel 50%

YARDS 10%

W&T 7%

diesel drives (engines / turbo's) 8%

ER Aux systems 7%

Electrical 7%

Consumables 5%

Hydraulic 2%

Cranes 1%

Winches/gearboxes 1%

Engineering 1%

Lubricants 1%

FOCUS ON VESSEL UPTIMERELATED CATEGORIES

Transactional

Individual

De-centralized

approach

Levelof

Partnership

Parts & Services

ExclusiveContracts

- Centralize -

Present Future

Partnership

Dynamic Maintenance

Agreements

- StrategicPartnership

- Work together- In house teams- Understanding

each otherbusiness

- Phasing in Smart technology- Optimize Total life cycle costs

Past

Future of Marine maintenance – Strategic Partnership

Jorn BertensCategoryManager Procurement

MRO & Maintenance services

Objectives & Challenges

• Improve on Uptime / Technical Performance• Optimize overhaul planning• Reduction of Energy consumption and a cut in CO2 / SOx emissions• Future availability of Technical personnel• Focus on total cost of ownership• Stock optimization

Requires a strategic approach

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Decentralized approach results infragmented Supplier Life Cycle involvement

CAPEXNew Building

WA

RR

AN

TY

OPEX

Supplier involvement in life cycle

250 Suppliers 750 Suppliers

Stelling 3 : Na CAPEX zijn dezelfde Key leveranciers voorminimaal 90% betrokken in het gehele OPEX proces?

NEE JA

Solutions to achieve objectives

• Strategic Partners with exclusive contracts• Centralize, simplified and uniform way of working• Dedicated [in house] supplier teams in place• Clear & direct Communication Lines (who does which installation)• Joined planning & optimized process• Upstream supply chain & operational purchase

Work togetherUnderstanding each other business

Strategic Partnerships with long term view

• Optimized total cost of ownership• Shared Ownership with Subcontractor (Long Term Relation)• Reduction on Energy consumption• and CO2 / SOx emissions• Safety improvement and planning ahead

Expected future benefits

• Optimized total cost of ownership• Shared Ownership with Subcontractor (Long Term Relation)• Reduction on Energy consumption and CO2 / SOx emissions• Safety improvement and planning ahead

Joined effort with strategic partnersto optimize Total Cost of Ownership

Obtain life cycle focus

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A CHANGEON

BOTH SIDESCAPEXShip

Management

Procurement

NewSales

Service

Parts Sales

Logistics

LIFE CYCLE FOCUS

Scope - Entire Fleet for maintenance & repair, upgrades and Modifications

All Parts & Services per system via dedicatedStrategic Partner

Electrical System - Parts & Services

E-Engineering

Frequencydrives

Panels

E- Parts /Components

Powercontrol

Troubleshooting24/7/365

E-motors&generators

All parts & services via Electrical strategic Partner

E-Manpower

AlarmSystems

Cables

“Electrical System” shall means the entire main Electrical system installed on board and dedicated to each Vessel, including but not

limited to main components such as Alarm systems, e-motors, generators, transformers, frequency drives,

distribution panels, switchboards, starter boxes, power control, lighting, cables. Including electrical section of

following OEM specific system such as air handling panel(s), desks wheelhouse, Boilers & Heating system, battery

chargers, converters, ups, navigation lighting, searchlights, window wiper systems, day signal lights, central aerial

system, cctv system, watch alarm, signal sounders, close-in/hospital/intruder alarms, telephone system, sound-

powered telephone, talk-back pa system, tachograph, shaft rpm indication, telegraph system, air whistle, tracing,

watertight doors, power management system, load sharing system, shaft earthing system and entertainment

system. DP system integration/installation works

Excluding the PLC & SCADA System, VODAS System, umbilical and ROV

Following components are excluded but the electrical system to connect the components are included in

"Electrical System" : Bridge & Nautical equipment, velocity meters, radio active sources, and following OEM

specific standalone systems such as; control panel main engine(s), control panel aux engine(s), control panel EM-

Harbour engine, steering gear system, deck machinery (crane/winches), bow thruster installation, control pitch

propeller(s), thermal oil installation, boiler-burner(s), provision freeze/cooling system, fresh water generator,

anti-fouling system, sewage/vacuum system, separator(s), watertight door systems, rudder angle indicators,

steering control, self unloading belt systems.

ElectricalStrategic Partner

Standard Electrical Maker list in place

Idem Approach for:

All parts & services via Electrical strategic Partner

All parts & services for system ordered via onededicated Subcontractor

Upfront planning discussed regular with dedicatedSubcontractor (look ahead) + Early involvementmodifications & major repairs

During local repairs: subcontractors & suppliesarranged by/via dedicated Subcontractor

Fixed and agreed rates, with incentive to planahead as for planned services 10% reduction inplace

For services > EUR 50k Open book calculationmethod in place

Standard evaluation form and lessons learnedshared on various levels

Working principles [Practical]

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CooperationSTRATEGIC PARTNERSHIP VESSELS

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Strategic Partnership

PRODUCT AUTOMATION

DP

COMMUNICATION

BRIDGE EQUIPMENT

ENGINEERING

W&T Cranes

ELECTRICAL

CYLINDERS

HYDRAULICS

DIESEL

ROV

SHIPYARD(S)

Supplier reduction from1000 to 20

Stelling 4 : Wie denkt het ook met 10% van de leveranciers te kunnen doen?

NEE JA

Strategic partnership per vessel

No Vessel Type Plant Senior Diesel Turbo Electr ical Process control Pr oductionCommunicationBridge DP system Hydraulics Hydr aulic

Manager Purchaser Engines Charger s (PLC- Scada) Automation V-Sat Equipm ent Kongsberg cylinder s

FA - in place FA - in placeFA - in place FA - in place FA - in placeFA - in placeFA - in place FA - in place FA - in place FA - in place

Large Tra i li ng Suction Hopper Dredgers x z

0318 HAM 318 Hopper AKR MNY Wartsil a + PON Power ABB BSL IHC Systems MSA Marl i nk Al phatron DP/DT 0 Hytop IHC Vremac

0325 Utrecht Hopper AKR MNY Wartsi l a ABB BSL IHC Systems MSA Marl i nk Al phatron DP/DT 0 BR Evergr een

0326 Rotterdam Hopper AKR MNY Wartsil a + PON Power ABB BSL IHC Systems MSA Marl i nk Al phatron na BR Evergr een

0328 Vol vox Terr anova Hopper AKR MNY Wartsil a + PON Power ABB BSL BSL MSA Marl i nk Al phatron na BR Evergr een

0340 Vox Máxima Hopper AKR MNY MAN MAN BSL IHC Systems MSA Marl i nk Al phatron DP/DT 1 Hytop IHC Vremac

Tra i li ng Suction Hopper Dredgers x z

0310 HAM 310 Hopper PBY PLB MAK ABB vd Leun MSA MSA Marl i nk Al phatron DP/DT 1 Hycom Hycom

0311 HAM 311 Hopper PZS TCW Wartsi la + Cummi ns ABB BSL IHC Systems MSA Marl i nk Al phatron na Hycom Hycom

0312 HAM 312 Hopper AFE TCW Wartsil a + PON Power ABB BSL IHC systems MSA Marl i nk Al phatron na Hycom Hycom

0315 Geopotes 15 Hopper PBY PLB Wartsil a + PON Power ABB BSL MSA MSA Marl i nk Al phatron na BR Evergr een

0316 HAM 316 Hopper PBY PLB Wartsi la + Cummi ns ABB BSL JB Systems MSA Marl i nk Al phatron na Hycom Hycom

0317 HAM 317 Hopper PBY PLB Wartsi la + Cummi ns ABB BSL IHC Systems MSA Marl i nk Al phatron na Hycom Hycom

0324 Lel ystad Hopper PBY PLB Wartsil a + PON Power ABB BSL JB Systems MSA Marl i nk Al phatron na BR Evergr een

0329 Vol vox Asia Hopper AKR MNY MAN MAN BSL STN or IHC Systems MSA Marl i nk Al phatron na Hycom Hycom

0332 Vol vox Del ta Hopper AFE MNY Wartsil a + PON Power ABB BSL na MSA Marl i nk Opti ona l na Hycom Hycom

0334 Vol vox Ol ympia Hopper PBY PLB Wartsil a + PON Power ABB BSL JB Systems MSA Marl i nk Al phatron na Hycom Hycom

0335 Vol vox Ata l anta Hopper PBY TCW Wartsil a + PON Power ABB BSL JB Systems MSA Marl i nk Al phatron na Hycom Hycom

0336 Dravo Costa Dorada Hopper AFE TCW Wartsil a + PON Power ABB MSA na MSA KVH Opti ona l na Hycom Hycom

0339 Vol vox Angl i a Hopper AFE TCW PON Power na Lokaal na MSA na Opti ona l na Hycom Hycom

0393 Pel i can Hopper AFE TCW Wartsil a + PON Power ABB Lokaal na MSA na Opti ona l na Hycom Hycom

0341 Vox Amali a Hopper MNY MAN MAN Ingeteam or BSL Alewi jnse MSA Marl i nk Al patron Hycom Hycom

0342 Vox Al exi a Hopper MNY MAN MAN Ingeteam or BSL Alewi jnse MSA Marl i nk Al patron Hycom Hycom

0343 Contender Hopper AFE TCW MAK + PON Power Strago Imotec Al phatron na Hycom Hycom

Sel f propel l ed Cutter Sucti on dredger s x z

0240 Athena Cutter , self pr op. HDE UKO Wartsil a + PON Power ABB BSL IHC Systems MSA Marl i nk Al phatron na Hytop IHC Vremac

0241 Ar temis Cutter , self pr op. HDE UKO Wartsil a + PON Power ABB BSL IHC Systems MSA Marl i nk Al phatron na Hytop IHC Vremac

Cutter Sucti on dr edgers / Boosters x

0218 Ham 218 cutter dredger HDE UKO Wartsi l a ABB vd Leun na MSA KVH Al phatron na BR Evergr een

0219 Ham 219 cutter dredger PZS TCW Wartsi l a ABB vd Leun na MSA KVH Al phatron na PMR Evergr een

0221 Noordzee cutter dredger PZS TCW Wartsil a + PON Power ABB MSA MSA MSA KVH Al phatron na PMR Evergr een

0224 Cal abar Ri ver Cutter AFE TCW PON Power na vd Leun na na na Opti ona l na PMR Evergr een

0236 Castor cutter dredger HDE UKO Wartsi l a ABB vd Leun na MSA KVH Al phatron na BR Evergr een

STRATEGIC MATCH PER VESSEL,FULL LIST ON INTRANET

Account teams

DEDICATED ACCOUNT TEAMS & CONTACT DETAILS

WITH STRATEGIC PARTNERS IN PLACE : STARTINSPECTIONS & PREPARATIONS WELL IN ADVANCE

SHIPYARD(S)

Sample Nordnes

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Meetings:

In house Service coordinator

Budget Meeting with Plant Manager

Meeting with Technical Superintendent – Repair/Modification specific

Kick off meeting on board

Evaluation of Service form

Senior contract meeting

Operational Purchase meetings

Data Management / Inventory Meetings

Meeting structures

Optimize:Process, Learning curve and Partnership

“LIVE”FRAMEWORKAGREEMENTS

OPERATIONALPROCESS

PERFORMANCEMEASURMENT

IMPLEMENTIMPROVEMENTS

EvaluationForms

Meetings

Work Preparation

Pro-Active look ahead

Performance sheet

Lessons learned tracksheet

Adjust work methods

Obtain life cycle focus

Strategic Partnership Process optimization

Scoping & open book calculations

Centralized tool for all strategic partners

2 Way Performance Sheet per Strategic Partner

Process & Meetings

Supply chain process

Service evaluation

Safety

Process improvementsVarious actions

Process optimalization

Warranty matters

Up to date performancemeasurement focussedon optimizing processes

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Stelling 5 : Is de interne Business bij contract management gesprekkenmet de leveranciers aanwezig?

NEE JA

Alignment with internal business

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Senior contract meeting - Strategic PartnershipsAttendancy Schedule Van Oord

Vodas Bridge E. DP ROV

Supplier Warts ila ABB MAN MAK PON Power Cummins BSL vd Leun MSA Alewijnse IHC Sys BSL JB Sys MSA MSA Marlink KVH Alphatron Kongsberg Seatools

2017

1 6 maart-

1 6 juni-14

sept-15 dec

17 jan-

19 sept15 juni jun

22 jun-7

dec

7 mrt-10

okt

14 feb-

9 mei-

7 sept-4 dec

14 mrt-

12 sept

feb-

augmei jun mei april april april

Occurance [per ye a r] 4x 2x 1x 1x 2x 2x 4x 2x 2x 1x 1x 1x 1x 1x 1x 1x 1x 1x 1x 1x

Wi l l ia m Le ms x x

Jorn Bertens x x x x x x x x x x x x x x x x x x x x

Fa ri da Saba r x x x x x x x x x x x x x x x x x x x x

Roe l a nd va n Schi e x B B B x B x B B B B x x BMari no Noppe ne y x x x x x

Pa ul Lubbers x x

John de G root x

Ugur Koce r x

Stefa n Ha ns um

Ca rl o Soll e ve l d

Da a n Ba l jet x x x x x x x x x x x x x x

Maa rten Loma n

Andre Kre e mer x x x x B

Maa rten Sa nde rs x x x

Pe te r Bijke rk B

Marco Burg B x xMichie l vd Knaa p x B x x

Di e deri k va n Ha lse ma B x x

Marti n Vi sse r x x x x x x x

Arja n Polde rva art x x x x

Michel Borst x

Ale x va n Wij kRog ie r Ge le i jn

Michae l Fla nderi jn x x

Diesel Engines Electrical Proces Control Comm. Vsat

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Intranet Agreements & services rates

https://vanoord01.sharepoint.com/Organisation/Staff/Procurement/Pages/MRO-Maintenance-services.aspx

Strategic Contract management

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The Starting PointIs about managing two way relationship with keeping in viewall stakeholders and total cost of ownership (TCO)

Playing field at 3 levels: Operational, Tactical and Strategic

Acquisition Parts and/or services.

Optimizing specifications, investing in the front

Innovation

Open book & trust

Optimizing Process cost and supply Chain cost

Optimizing Lifecycle costs

Reduction of failure costs

Risk mitigation (terms & conditions)

Two way Maximizing profits

Establish long term relationship

Joint search for Sustainability

Strategic Partnership Vessels

- Central Kick off meeting 27 Oct -

SMD - Procurement & Suppliers

Team work

WORKSHOP6-8 groups

One mission

- 15 minuten -

Welke 3 key vragen moet je aan stellen aan:

de Businessunits stellen?

Leveranciers stellen?

Contract-/leveranciers managers stellen?

Presenteer bevindingen - 2 minuten per groep -

Mission: