PKN ORLEN is a Polish company and one of Central Europe’s largest refiners of crude oil. The Company specialize in processing crude oil into world-class unleaded petrol, diesel, heating oil, and aviation fuel as well as plastics and other petroleum related products. At the end of 2010 the ORLEN Group consists of 56 companies and employed more than 22,000 people.
ORLEN Upstream was established in 2006 in order to implement its crude oil and natural gas exploration and production strategy. The company is engaged in various upstream projects, both as operator and partner.
The role of procurement within ORLEN Upstream
The role of Procurement is to deliver goods and services to other internal processes that will meet their demands and requirements. Its main task is to support colleagues in achieving their goals and targets resulting from company’s strategy and business needs.
The personal commitment of those in procurement is to achieve the best quality products and services for a reasonable price. This includes:
- obtaining maximum value for money in contracting for the goods and services that enable the department to deliver its business objectives,
- enhancing the competitiveness of the supply base, assuring economic supply and
- making a contribution to profits by efficiently controlling total costs.
Why CIPS Certification?
The ORLEN Upstream procurement team is committed to offering best in class procurement to internal customers and suppliers and would like to be recognised by clients, suppliers and internal customers as an example of best procurement practice in the oil & gas industry.
How CIPS helped
CIPS Certification has enabled ORLEN Upstream to receive an independent confirmation of best practices.
A hierarchy of procurement policies, key objectives, procedures and instructions were created. The result was a clear, understandable and highly effective system of work reflected by internal documentation.
The 3 biggest outcomes of using CIPS Certification for ORLEN Upstream
- Clearer, improved and standardised procurement processes - from policies and strategies to the lowest level of purchasing instructions
- Increased trust from business partners and suppliers
- Reassurance that the approach to procurement is fit for purpose and to world leading standards
Outcomes in terms of benefits
A key achievement for ORLEN Upstream Procurement has been the ability to reach its procurement goals and targets and make a significant contribution to achieving wider organisational and stakeholder business goals.
CIPS Certification provided the means for the ORLEN Upstream Procurement team to look at procurement processes on a broader and more complex scale. This has led to higher quality and repeatable purchasing activities.
Since completion of CIPS Certification, internal clients have been demonstrating greater trust in the department’s procurement processes. As a consequence, signs are strong that the number of non-compliances is set to fall.
More active participation by internal clients in the process of procurement is also leading to the procurement team benefiting from the professional knowledge of internal clients, helping to reduce risk and to reduce costs.
With greater interaction and a higher profile for the department, the morale of the ORLEN Upstream Procurement team has also seen a boost.
What differences are there in your organisation as a result CIPS Certification?
“As our organisation grows, changes and competes, our supply chain management response must be able to reflect the challenge and opportunity facing the company as a whole.
We believe that the adoption of supply chain management best practices has assisted ORLEN Upstream in achieving world best class performance.”
Wiesław Prugar, President of the Management Board, ORLEN Upstream