Colfax Corporation

: Designing a Middle East oil and Gas Distribution

system
History
● It had been founded in the late 1990s
● it was devoted to integrating world's best
manufacturers of industrial fluid handling
equipment.
● Its five business units were directly
descended-from once-independent and
highly regarded pump companies originating
in Germany, Sweden' France' the Netherlands'
and United States
Business Development Challenge
for Colfax
● Heavy industrial structure build in
middle east
● highly skilled technical engineering,
design, and sales experts.
● Pulling them off task for an intense
market development campaign
● Competitor
The National Oil companies

● As a group, Saudi Arabia, Iran, Iraq, the

United Arab Emirates, Bahrain, and
Qatar had by far the world's largest
concentration of easily extracted "sweet'
crude oil-the most desirable kind.
External Pressures on Middle East
Oil companies
● Soudization Pressures.
● Transparency Pressures.
● Localization Pressures.
Supply Chain Management
Methods Used by Oil Companies
● On close examination the stress lines were apparent as Aramco
attempted to lessen underlying tensions in its supply chains. New supply
chain techniques addressee( different areas of concern, including
product reliability, design reliability, supplier reliability, post-sale
maintenance reliability, and sales agent reliability.
● 9com
● FEED and DM Engineering.
Customer Perspective: Aramco's
Needs from Suppliers
● Assure facility uptime and continuous production capacity .
● Reduce lead time to installation and operation “
● Deliver on time and to requirements .
● Practice "engineering integrity": accuracy, efficiency, know-how .
● Reduce distance, both geographic and organizational .
● Employ locals to help with compliance to Saudization policies
● Proactively support maintenance of buyers 'facilities
● Guarantee error recovery by maximizing proximity and responsiveness .
● Integrate pump modules, reduce engineering time and knowledge
requirements .
● Seek 9com listing at Aramco for all possible product and platform
solutions t
● Maintain brand separation to give good/better/best offerings in
multiple-bid situations .
● Target "technology programs, " where innovators could cut through
bureaucracy
● FEED and DRP level floras in support customer's need for speed
Supplier Perspective Challenges in
the Oil and Gas Sector
● High-Touch Customer Needs
● Shifting Locale of Customer Decisions
● Protection intellectual Property.
● Inadequate Distribution Structure
State-Owned Oil and Gas Companies-Supplier

Distribution Needs
● Basic support first
● Speed
● Frequent, face-to-face expert-expert conversation
● Reduced vulnerability.
● Direct talk with 9com-approved manufacturers
● Local content.
● More qualified vendors in some product categories
Recommendation
● The company learned that nine components would help win it win over its
end customers.
● Colfax would need to supply basic support and keep all processes moving.
● By instituting face-to-face, expert-to-expert, no nonsense conversations
Colfax could increase technical assurance on the state side and process
efficiency.
● Excellent technical support or documentation would ensure
self-sufficiency, providing customer engineers with more secure
knowledge.
● Colfax also heard that it should be proactive — oil supply programs are
vast and complex, so take charge of whole solutions and help manage the
oil company’s supply efforts — and, naturally, error-free when it came to
delivery on quality and spec.
● Culturally, including locals would help comply with domestic social policy,
and bring value-added capacity by assuring supply availability, effective
testing and quality installation. And a multi-bidder procurement process
would underscore selection fairness and help oil companies evaluate
offerings.