NC “Kazmunaygas” JSC introduces procurement category management as part of transformation

National company “KazMunayGas” is one of the largest procurer in the country. The introduction of the new operating procurement model will contribute to the consolidation of KMG assets and increase value. KMG transformation team together with Samruk-Kazyna is introducing a number of projects in the procurement. In particular, based on the Fund’s standards industry Procurement regulations has been developed. This document is the basis for the implementation of procurement category management within KMG group of companies,” Sauat Mynbayev, Chairman of the Management Board of the national oil company said at the conference “Procurement category management at NC “Kazmunaygas” JSC.

According to him, the transformation of the procurement system is aimed at changing procurement approach taking into account the peculiarity of the business. The introduced changes will help to reduce purchase prices, improve the quality of the goods, works and services, the development of local producers, reduce residues in storage and transport costs.

As per the Senior Vice-President for Transformation of the national oil and gas company - General Director of «KMG Global Solutions BV» in Kazakhstan Gleb Luxemburg, the industry procurement regulations of «KazMunayGas» detail the category management, requirements planning, procurement process and contract management. During the project implementation the experience in the procurement system of such companies as «Shell», «British Petroleum», «ExxonMobil», «Talisman Energy» and other world famous corporations was taken as basis.

«The Fund actively promotes the philosophy of procurement category management. It will be an integral part of all procurement processes. Every large company will have its own industry regulations that will detail and in a way replace those procurement rules, which exist today. This work is carried out across the whole group. «How will we interact with the Fund» – suppliers ask themselves. I must say that there won’t be two or three different mechanisms. There will be a new mechanism,» Managing Director for Transformation and Special Projects of «Samruk-Kazyna» JSC Adamas Ilkevicius told.

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