Strategic Supply Chain Management
November 8, 2005
AMEC Paragon's Supply Chain
Effective supply chain management can be described as the efficient utilization of methods and processes that integrate manufacturers, suppliers, and distribution channels in a way that delivers product and/or services at the right time, in the right quantities, and at the needed location to minimize costs and maximize profit and customer satisfaction (Simchi-Levi, Kaminsky, & Simchi-Levi, 2005). AMEC Paragon believes this is essential to the well being of the solutions provider and makes it part of our mission statement (http://www.amec.com/sustainability/2ndlevel.asp?pageid=9006). AMEC Paragon is an engineering manager, designer, constructor, and installer of offshore oil and gas platforms, worldwide. This is accomplished by using the client's ideas and expectations and gathering manufacturers, suppliers, and fabricators to create an oil or gas production platform and the product distribution system to its final destination. The beginning of each new project requires that AMEC Paragon prepare a service and product distribution network that will deliver what the customer has specified, to the correct location, and in a timely manner. Client specifications enable AMEC Paragon personnel to begin the first of many steps involved in project completion. These specifications help develop the process necessary to identify vendors that will be able to manufacture or supply the many components necessary to construct a multi-million dollar platform. Pumps and piping will be required to bring the oil or gas up from the ocean floor. Steel structures of many types must be assembled together to support the many vessels and tanks required to process the product. Electrical machinery of all types will be used to move the product around from one tank to another. Final assembly of these components are done by more than a...