Supply Chain Management for the Energy Transition - Strategic Sourcing in Baker Hughes

The supply chain plays an increasingly important role within companies, and its management is becoming increasingly complex as the number of interactions and players involved rises. Companies are required to become more flexible and able to adapt, redesigning physical and IT systems and redefining relationships with suppliers, who are taking on an increasingly strategic role. Based on the internship at Baker Hughes' Turbomachinery and Process Solutions division, this paper addresses several issues related to strategic Supply Chain Management and the challenges the company is facing in transitioning to an energy technology company. The text develops around the role of strategic sourcing as a tool for integrating corporate strategy, focused on rationalization and standardization, with commodity and supplier level strategies. The first project developed concerns the rationalization of the supplier base for the Electrical & Instrumentation commodity, followed by the presentation of two projects relating to purchasing forecast and automatizing RFQs releases implementing a BOT. To support standardization, a dashboard has been developed for monitoring and analysis of KPIs related to the adoption of standard items by engineering and the strategy definition at product-code level. Based on the portfolio approach developed by Olsen-Ellram and guidelines adopted by the company, a model for supplier's relationships management by product type is introduced. The last chapter presents the development of a model for evaluating the impacts of volatility in prices of raw materials and cost of labour on forecast purchases.