Establish Supply Chain Team
An oilfield service company with $1.3 billion in spend across multiple product lines engaged McDaniel+Cullen to build procurement capability from the ground up. M+C designed a center-led supply chain organization with category management, built an opportunity roadmap, and recruited a new head of supply chain — resulting in +$80 million in sourcing savings captured.
Situation
This oilfield service company was pursuing aggressive capital growth plans but lacked the procurement processes and organizational capability to support them. With $1.3 billion in spend spread across multiple product lines and geographies, purchasing decisions were largely made at the operations level without a coordinated supply chain function.
Without a structured approach to sourcing and category management, the company was leaving significant value on the table and exposing itself to supply risk as it scaled. Leadership knew it needed to build procurement capability but was unsure where to start or what kind of leader to hire.
M+C Approach
McDaniel+Cullen designed a new, center-led supply chain organization built around category management — balancing central coordination with the responsiveness the field and operations teams required. The team analyzed the company's spend to identify the highest-value opportunities and built a prioritized roadmap for capturing them.
To make the change sustainable, M+C gathered input and requirements from the field and operations organizations so the new structure had buy-in from the start, then recruited a new head of supply chain with the profile needed to lead it. This combination of organization design, opportunity roadmap, and the right leadership gave the company a function it could grow with.
Results
The new organization is in place, and the client is capturing +$80 million in sourcing and category management value.
Key Outcomes
- Center-led supply chain organization designed around category management
- $1.3B in spend analyzed and a prioritized opportunity roadmap delivered
- +$80 million in sourcing and category management value being captured
- New head of supply chain recruited to lead the function
- Field and operations buy-in secured through structured requirements gathering
Client Feedback
"We knew we needed to improve our Supply Chain capabilities but did not know exactly what we needed or how to implement them. M+C performed an assessment and showed us clearly where opportunity was and what to look for in a Supply Chain leader to recruit. M+C did a great job gathering input and requirements from our field and ops organization so the changes had good initial buy-in.