PDO joins with 3500 suppliers online

Petroleum Development Oman (PDO) has moved its procurement process online by signing up to Oman TradaNet’s iX2 business exchange. By doing so, it will be able to connect electronically its 3500 suppliers.

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By  Matthew Southwell Published  January 20, 2003

Petroleum Development Oman (PDO) has moved its procurement process online by signing up to Oman TradaNet’s iX2 business exchange. By doing so, the oil & gas company will be able to connect electronically its 3500 suppliers and service providers from around the region.

“PDO has been at the forefront of e-commerce innovations for some time and we see this announcement as a further step in improving our efficiency and our relationships with our trading partners,” says Mohamed Toki, PDO’s contracting & procurement manager.

In addition to accelerating transaction times, the migration of its procurement process to the Web has brought increased transparency to the company’s trading. “By taking the procurement process online we have a better view of it so, should someone ever complain about the process, we can go straight into it and see what happened when. This is good for our credibility,” explains Toki. “A further benefit is that because we are interacting with our suppliers online all of the information in our database is always up-to-date,” he adds.

The move to OTN’s business exchange is the collimation of what Toki calls the “digitisation of PDO’s procurement processes.” Begun back in 2000, the initiative has seen the oil & gas company implement electronic registration for its suppliers and introduce online bidding.

“Joining the OTN exchange is an extension of the digitisation process and it also allows us to utilise our recently installed SAP R/3 system for e-procurement. We want immediate linkage with all of our vendors, contractors and suppliers so that when we want someone to quote for a certain contract we are able to go through OTN directly to the PCs of our traders,” explains Toki.

The integration of PDO’s R/3 system with OTN’s exchange was handled by the exchange’s own technology team and PDO’s IT department. Currently, PDO uses an e-mail server to send and receive its documents, although OTN is building a link to replace the e-mail server that will enable documents to be sent directly from the R/3 app to the trading community via the iX2 exchange. The work will be completed this month.

“It will allow PDO to track a response and see when it was received, who opened it, and when it was responded to. Likewise, they will also be able to track the return document,” explains Alan Livingston, CEO of OTN.

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