An Exploratory Study for Performance Improvement through Supplier Client Services Framework

Abstract

This research is aimed to study on supplier relationship management particularly on service procurement of the oil and gas industry in Malaysia. Volatile oil price and COVID-19 pandemic required oil and gas companies to re-evaluate their supply chain strategies to minimise the impact. One of the strategies was to build better relationships with suppliers. Based on literature, services procurement is much more complex than goods procurement. The literature reviewed the topic of the oil and gas industry, outsourcing and subcontracting and supplier relationship management. In details, different elements of supplier relationship management are discussed such as its model, benefits, influencing factors and types of suppliers and relationships were discussed. From the literature review, a conceptual framework was developed. “Case study” is adopted as the research method as it provides sophisticated insight on the research topic. Four companies were interviewed to understand the supplier relationship management process. The research findings show that there are different supplier relationship management processes adopted by the four companies selected for case study. All companies agreed that they gained benefits with better supplier relationships. However, all the companies are facing difficulties in implementation of supplier relationship management. In addition, the interviewees expect their suppliers to be more competent in terms of cost, time and quality to contribute to a better buyer-supplier relationship. The conceptual framework is revised based on the research findings and presented as one of the findings.