David Steven Jacoby

Procurement

Supplier Prequalification

Technology Selection

Tendering Procedures

Strategic & Global Sourcing

Contracting & Negotiation Support

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Supplier Prequalification

Technical prequalification

Commercial prequalification

Supplier database & platform management

Technology Selection

For strategic and long-term commitments where technology is rapidly changing, buyers need to decide which technology platform to adopt, even before the platform is known or specified. From a procurement point of view, the problem is that the cost of the up-and-coming technologies is usually unknown. David Jacoby provides economic analyses that are designed to help make the best technology and supplier selection in these situations, through his teams of technical experts, oil and gas economists, and analysts. Recent technological assessments include, for example:

Comparison of alternative technologies for energy storage on offshore platforms

Comparison of alternative technologies for accessing stranded gas at economical cost

Comparison of alternative technologies for processing heavy oil

Survey of available technologies for small and mid-sized LNG processing facilities

Comparison of alternative technologies for pipe coating

Survey of newly-commercialized technologies for improving steam turbine efficiency

Tendering Procedures

David Jacoby plays an advisory role in tenders that involve a long lead time and early supplier involvement. He helps with decisions that inevitably need to be made, such as for example:

When to begin sharing information with various key and less preferred suppliers

How to protect intellectual property rights during the long period of communication between buyer and supplier(s)

What criteria to use in choosing suppliers and eliminating others at various stages in the process

When to begin assembling budgetary prices (if too early, this may be counter-productive)

How to assess the impact of potential economies of scale and potential erosion of competition by consolidating with one supplier for a long-term project

When to begin negotiating on price

When to commit by signing contracts, approving budgets, and disbursing funds

Strategic & Global Sourcing

Jacoby manages strategic sourcing programs from concept through new supplier onboarding. Often with onsite teams, he deploys a proven 16-step methodology guaranteed to generate tangible and rapid savings, and train your junior and senior staff along the way. Whether the category is engineered or standard, services or materials, capital or expense, he has you covered.

Contracting & Negotiation Support

Jacoby manages strategic sourcing programs from concept through new supplier onboarding. Often with onsite teams, he deploys a proven 16-step methodology guaranteed to generate tangible and rapid savings, and train your junior and senior staff along the way. Whether the category is engineered or standard, services or materials, capital or expense, he has you covered.

Timing and sequence of negotiating events

Number of rounds and type of discussion to be had at each stage

Optimal level of depth to be addressed at each stage to achieve the desired end state

Price and non-price strategies for win-win agreement

Monetization of risks, including unique risks such as currency inconvertibility, local content requirements, quality gaps, and untimely release of milestone payments.

Identification of high-value leverage point

procurement consulting CASE STUDIES

  • Industry: Wind Power
  • Key Challenge: Rapidly changing technologies, suppliers and economics.
  • Why Selected: Deep experience in exploration and production project management
  • Project Scope: Wind turbines, foundations, electricals, and installation.
  • Project Approach: Master supply chain planning, category sourcing strategies, financial modeling.
  • Operational Benefits: Identification of bottlenecks and plans to mitigate them.
  • Financial Benefits: 13% reduction in projected capital and operating expenses.

Click here to read the full case study.

  • Industry: Oil & Gas
  • Key Challenge: Supplier price increases above cost inflation
  • Why Selected: Expertise in oil & gas procurement & supply chain
  • Project Scope: 200 engagements covering 150 types of purchased products and services
  • Project Approach: Price analysis (proprietary econometric models), risk analysis (proprietary software tools), contracting strategies (proprietary decision algorithms)
  • Operational Benefits: Quicker delivery, lower inventory, more up-to-date technologies
  • Financial Benefits: $1.7 billion (28%) savings identified

Click here to read the full case study.

  • Industry: Thermal Power
  • Key Challenge: Limited leverage over a sole supplier of critical gas turbine power plant technology
  • Why Selected: Expertise in the full range of contracting from supplier selection to long-term maintenence agreements
  • Project Scope: Construction, operating, and maintenance phases
  • Project Approach: Competitive benchmarking and analysis, and proprietary contracting structures
  • Operational Benefits: Clarity and confidence around long-term partnership
  • Financial Benefits: 30%+ cost savings through multiple contracting strategies

Click here to read the full case study.

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