Renowned for its vast and complex operations, Sirte Oil Company was confronting significant challenges in its procurement function. Despite having a well-established infrastructure, the scale of operations was beginning to stretch traditional methods to their limits. Inefficiencies in managing material handling, warehousing and purchasing were emerging as the company expanded its operations, highlighting the need for a more robust, modernised approach. To address these issues, the company engaged Qabas to transform its procurement processes through a comprehensive, technical training programme.
The Situation
Although the company’s procurement function had long been a critical enabler of its operations, rapid expansion had exposed limitations in existing methods. The traditional processes for managing purchasing – from defining responsibilities and setting clear objectives to budgeting for raw materials and production needs – were increasingly overwhelmed by the volume and complexity of transactions. There were significant challenges in achieving consistent stock control, optimising inventory levels and negotiating supplier contracts effectively. Coordination between departments such as production, sales, design, maintenance and finance was not always seamless, resulting in occasional delays and reactive financial planning. These issues, driven largely by the sheer scale of operations, underscored the urgent need for a strategic overhaul of the procurement function.
Our Approach
Qabas developed an integrated training programme tailored to the unique challenges of a large-scale operation. Delivered over several weeks with dedicated sessions for each module – for example, three weeks focused on purchasing processes, three weeks on store and inventory management, and additional sessions covering insurance, safety, credits, customs, budgets and computer applications – the programme was designed to equip the procurement team with the tools to modernise their approach.
The training began with an in-depth module on the purchasing function and its strategic importance. Trainees delved into detailed definitions, objectives and management responsibilities, and learned how to prepare estimated budgets for purchases and raw materials. This foundational session established procurement as a strategic business function, essential for driving cost efficiency and operational resilience.
Subsequent modules focused on the technical aspects of store and inventory management. Participants studied the procedures for inventory exchange, control and returns, while learning how to coordinate effectively with other departments. Practical exercises illustrated advanced inventory control techniques – including the application of ABC classification, economic order quantity and reorder point calculations – to optimise stock levels. Trainees were also guided on establishing a complete documentary cycle to ensure transparency and accountability throughout the process.
Recognising the critical role of financial management in procurement, a specialised module on budgeting for inventory control was included. Here, the focus was on developing sophisticated techniques for planning budgets that accurately reflect current operational needs, production demands and raw material requirements. Participants learned how to analyse residual values and optimise cost structures, enabling them to plan for market volatility and reduce unforeseen expenditures.
Given the inherent risks associated with managing large-scale material handling, the programme also featured a comprehensive session on occupational safety and handling. This component provided practical guidance on safe material handling practices, fire safety protocols, chemical hazard management and the selection of appropriate equipment. The aim was to ensure that operational efficiency would not compromise worker safety and that procurement processes would align with the company’s overall safety standards.
The training was conducted on-site at the company’s headquarters, allowing Qabas to customise the content to the specific operational environment. A team of seasoned experts led the sessions, including the core group from previous initiatives and additional specialists with expertise in insurance, customs, occupational safety and computer applications. Notably, Professor Abdul Razzaq Al Danqir delivered key modules on budgeting and organisational structure, while Professor Muhammad Ibrahim Abu Qurain specialised in purchasing management and credit administration. Professor Khairi Ali Tal’ah provided essential insights into the financial aspects of procurement. Their combined expertise ensured that theoretical concepts were immediately translated into practical, actionable strategies tailored to the challenges of a vast operational network.
Results
Following the comprehensive training programme, the oil giant experienced significant improvements in its procurement operations. Enhanced clarity in roles and modernised inventory control techniques led to a more streamlined and proactive purchasing process. The procurement team became more adept at negotiating with suppliers, planning accurate budgets and utilising advanced inventory methods – all of which contributed to reduced delays and more efficient cost management. In addition, the integration of rigorous safety practices ensured that operational improvements were achieved without compromising worker well-being.
By engaging Qabas and embracing a strategic overhaul of its procurement function, the company has transformed its material handling, warehousing and purchasing processes. The fruits of this capacity-building exercise are now evident in a more agile, responsive and cost-effective procurement operation – a critical advantage for an oil giant operating in an increasingly competitive and complex environment.
