Procurement Officer (Oilfield Logistics) — owns end-to-end purchasing and expediting of logistics services and movement-critical oilfield materials to meet drilling, completions, production, and maintenance schedules while controlling cost, risk, and compliance.
I. Core responsibilities
- I.1 Source and qualify logistics vendors: freight forwarders, customs brokers, marine/aviation charters, rig movers, heavy-lift, last-mile hotshot, and yard services; maintain approved supplier lists and qualification files (HSE, QA/QC, insurance, capacity).
- I.2 Prepare and run RFx: issue RFIs/RFQs/RFPs with scopes, service SLAs, routing guides, Incoterms, load lists, and HS codes; run e-auctions; perform commercial/technical bid tabulations and total landed cost analysis.
- I.3 Negotiate and award: rates (linehaul, fuel, bunker, detention/demurrage), accessorials, surge capacity, free time, and KPI-based incentives/LDs; secure frame agreements and spot charters aligned with demand.
- I.4 Create POs and service orders: convert approved requisitions/MRPs to POs; ensure correct GL/WBS coding, tax, Incoterms, and required documentation (B/L, AWB, CoO, MSDS/SDS, MTRs, CoC) per shipment type.
- I.5 Expedite and track: monitor pickup–transit–delivery; clear customs; resolve holds, damage, and discrepancies; coordinate with warehousing for receipts and put-away; maintain expediting logs and OTIF metrics.
- I.6 Plan logistics for rig operations: align material readiness with spud/mobilization plans, rig-up/rig-down, well swaps; book marine/aviation slots; prioritize AOG/critical spares; manage backloads and returns.
- I.7 Inventory and replenishment linkage: collaborate with materials teams on min/max, safety stock, reorder points, and cycle counts for high-turn consumables (mud chemicals, OCTG accessories, lifting gear).
- I.8 Compliance and HSE: enforce Incoterms, dual-use/export controls, local content, cabotage, DG/IATA/IMDG rules; verify carrier qualifications, load securement, and lifting plans; document NCRs and corrective actions.
- I.9 Cost control and reporting: validate milestones for 3-way match; audit freight invoices and surcharges; challenge demurrage/detention; report savings, cost avoidance, OTIF, lead time, and inventory turns.
- I.10 Claims and performance management: raise/defend claims (shortage, damage, late delivery); manage vendor scorecards; conduct QBRs; drive corrective actions and continuous improvement.
- I.11 Stakeholder alignment: synchronize with drilling/completions/production maintenance planners on look-ahead schedules; communicate risks, ETAs, and mitigation plans.
II. Required technical skills, soft skills, and physical demands
- II.1 Technical skills
- Oilfield logistics categories: road/sea/air, rig move packages, PSV/helicopter slots, heavy-lift, customs brokerage, DG handling.
- Contracts and Incoterms: service orders, frame agreements, LDs/bonuses, demurrage/detention, Incoterms 2020 application to routes.
- Trade compliance: HS classification, import permits, dual-use controls, certificates (origin, conformity), temporary import/ATA carnet.
- MRP and replenishment: EOQ, safety stock, and reorder point calculations integrated with maintenance and drilling schedules.
- Costing: total landed cost, fuel/bunker indexation, currency considerations, accessorials; bid tab and scenario analysis.
- HSE/QA: DG segregation, load securement, lifting/rigging basics, PPE compliance, vendor HSE vetting, NCR handling.
- Data proficiency: ERP/MM, eSourcing, TMS/WMS, carrier track-and-trace, and BI dashboards.
- II.2 Soft skills
- Negotiation and supplier relationship management under time pressure.
- Prioritization and escalation for critical path materials and rig schedules.
- Analytical rigor; clear written specs and concise progress reporting.
- Cross-functional communication across operations, HSE, QA/QC, finance, and legal.
- II.3 Physical demands
- Primarily office/yard based; frequent warehouse/yard walkdowns and vendor site visits.
- Ability to use PPE and navigate yards, quaysides, and heliports; infrequent lifting of light packages and document sets.
- II.4 Formulas commonly applied (inventory and logistics)
- Economic Order Quantity (EOQ): \( Q^{*}=\sqrt{\frac{2DS}{H}} \)
- \(D\): annual demand, \(S\): order/setup cost, \(H\): annual holding cost per unit.
- Safety Stock (normal demand, variable lead time): \( SS=z\,\sigma_{L} \)
- \(z\): service level factor, \(\sigma_{L}\): standard deviation of demand during lead time.
- Reorder Point: \( ROP=\bar{d}\,L+z\,\sigma_{L} \)
- \(\bar{d}\): average demand per period, \(L\): lead time (periods).
- Demurrage/Detention Exposure: \( \text{Cost}=\max(0, T_{\text{actual}}-T_{\text{allowed}})\times \text{Rate} \)
- Total Landed Cost (simplified): \( TLC=\text{Purchase}+\text{Freight}+\text{Duties/Taxes}+\text{Insurance}+\text{Accessorials} \)
- Economic Order Quantity (EOQ): \( Q^{*}=\sqrt{\frac{2DS}{H}} \)
III. Typical tools/software/equipment used
- III.1 ERP/EAM & MRP: SAP S/4HANA MM, Oracle SCM Cloud, Maximo; catalog and MRP runs; PO release strategies and 3-way match.
- III.2 eSourcing/Contracts: Ariba, Jaggaer, Ivalua; RFx, e-auction, contract repository and clause libraries.
- III.3 TMS/Visibility: SAP TM, Oracle OTM, CargoWise, FourKites/Project44; routing guides, carrier compliance, track-and-trace.
- III.4 WMS/Yard: Blue Yonder, Manhattan, SAP EWM; ASN, put-away, cycle counts, load planning.
- III.5 Trade compliance: HS classification tools, denied-party screening, license/permit trackers.
- III.6 BI & Analytics: Power BI, Tableau; KPI dashboards (OTIF, lead time, cost/saving), scenario models.
- III.7 Document control: SharePoint, OpenText; shipment packs (B/L, AWB, CoO, MSDS/SDS, CoC, MTRs), vendor documentation.
- III.8 Field equipment (as needed): barcode/RFID scanners, calibrated scales, basic measuring tools for package verification; PPE kits.
IV. Work environment
- IV.1 Onshore office/yard based with frequent interfaces to warehouses, quaysides, airports, and vendor facilities.
- IV.2 Schedule: standard office hours with surge coverage during rig moves, spuds, shutdowns/turnarounds, and critical lifts.
- IV.3 Travel: 10–25% domestic/international to vendors/ports; occasional offshore/remote site visits as required for expediting/audits.
- IV.4 Offshore exposure: typically limited; may support offshore dispatch windows and backloads remotely.
V. Reporting lines and cross-functional interfaces
- V.1 Reporting lines
- Reports to: Logistics Manager or Supply Chain Manager (C&P/SCM).
- May receive functional guidance from: Category Lead—Logistics or Regional Contracts Lead.
- V.2 Cross-functional interfaces
- Drilling, Completions, Production Ops, and Maintenance planners (demand and look-ahead schedules).
- Materials/Warehouse and Inventory Control (stock levels, receipts, cycle counts).
- HSE and QA/QC (vendor pre-qualification, lifting/rigging, DG compliance, NCRs).
- Finance/AP (3-way match, invoice resolution, accruals), Legal (contract terms, claims), Tax/Customs (duties, exemptions).
- Marine/Aviation coordinators, Freight Forwarders, Customs Brokers, and Port/Terminal operators.
- V.3 Deliverables & handoffs
- RFx packages, bid tabs, negotiation minutes ? internal approvers and stakeholders for award.
- Purchase Orders/Service Orders and Contract Award Notices ? vendors, warehouse, finance.
- Expediting logs, shipment plans, and ETAs ? operations planners, marine/aviation schedulers.
- Import/export packs (licenses, HS codes, CoO) ? customs broker; receiving packs ? warehouse.
- KPI dashboards and vendor scorecards ? management and category teams.
- Claims files (evidence, survey reports) ? legal/insurance and suppliers.
VI. Career ladder
- VI.1 Next-step roles
- Senior Procurement Officer—Logistics.
- Category Specialist/Lead—Logistics & Marine/Aviation.
- Logistics Contracts Specialist or Lead Buyer—Logistics.
- SCM Supervisor (Logistics), Contracts & Procurement Lead.
- Logistics Manager or Supply Chain Manager (broader portfolio).
- VI.2 Advancement requirements
- Proven delivery on OTIF = 95%, lead-time reduction, and measurable cost savings/cost avoidance.
- Mastery of Incoterms, DG rules (IATA/IMDG), customs regimes, and claims/demurrage management.
- System proficiency (ERP/TMS/eSourcing) and data/BI storytelling for decision support.
- Certifications: CIPS/MCIPS or CPSM; DG awareness; trade compliance; lifting/rigging awareness.
- VI.3 Progression trigger
- Typically promoted after 18–36 months, successful execution of 10–20 complex shipments/projects, delivery of documented savings, and completion of a procurement certification (e.g., CIPS Level 4 or CPSM) and DG/Incoterms training.
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