TCO: Kazakhstan companies miss an opportunity of participating in millions of dollars purchases

TCO: “Kazakhstan companies miss an opportunity of participating in millions of dollars purchases due to unfamiliarity with principles of tender price formation, failure to meet deadlines and incorrect collection of documents.” This was reported by Shawn Doerty – SCM advisor for Kazakhstan local content development of Tengizchevroil LLP.

In order to assist domestic enterprises in becoming more competitive TCO jointly with European Bank of Reconstruction of Development arranged “Preparation for participation in oil and gas sector purchases” training. Companies from Karagandy, Shymkent, Astana, Almaty, Atyrau and other regions of Kazakhstan were invited to Atyrau for free of charge three days training in purchases in order to study such subjects in detail as: RFP influence on purchases in oil and gas sector; strategies of purchases depending on balance of customer’s and supplier’s potential; role and significance of approaches to evaluation of suppliers through aggregate cost model; formation of document pack by supplier for participation in tender; how customer evaluates commercial proposals as well as participants practically studied price formation of tender request. “Note: Participation in training does not guarantee award of TCO contract or other players of oil and gas sector”.

As a result of training domestic business learned to understand reasons for difficulty of holding purchases in oil and gas sector companies, determine influence of regulatory requirements and to understand how to better prepare for participation in tender procedures.

Regardless that during training representatives of domestic companies actively participated in discussions not all their expectations were satisfied. Anuar Nugmanov – Kazintercool LLP (Atyrau) director – stated: “I liked the training itself very much. It was obvious that coach Maxim Baranov gave maximum effort, tried to communicate the information and comprehensively reply to all issues. However as of the moment it did not help cooperation with TCO, I have received no advantage in this issue”.

Andrey Zhuvanyshev from Caspiy Plus LLP did not agree with him, he said: “In the course of the training the received theoretical knowledge could be applied in practice, we could see and learn from mistakes. This practical training will allow to apply in the future the skills in work. Special thanks for invited coaches”.

“This training was very useful for us, thanks to it we understand now all nuances of tender holding process and consequently we can prepare ourselves better for it in advance. At the same time by constantly improving efficiency of our activity and increasing quality of business processes we become a more competitive enterprise. Understanding motives and purposes will allow to implement more conscious selling policy through strengthening our advantages and neutralizing effect of disadvantages over the long run. Also we understand now why it is so important to constantly work over improvement of our supply chains, to build correct work with our suppliers and in our turn to develop our suppliers”, – said Assel Aimusheva from Edil Oral LLP.

The purpose of this training was improvement of competence and knowledge in the area of management of preparation processes of Kazakhstan companies for international tenders. Regardless of differences in purchase procedures of operators there are basic factors impacting formation of competitive request. Understanding of difficulties in customer’s tender procedures as well as application of best practices of tender proposals preparation will allow local suppliers to efficiently work with tenders of different oil and gas sector players as well as will increase their competitiveness on the market. Nevertheless participation in training does not guarantee award of TCO contract or other players of oil and gas sector.

Earlier Tengizchevroil LLP have already trained domestic companies in basics of API certification and already in several months it plans to hold training of domestic companies directors in principles of safe management in accordance with international standards. Nevertheless development of domestic suppliers is a long-term objective, which requires involvement and active work of operators, state and companies themselves.