Supply Chain World - Fall 2017 - 70

manufacturing & energy hess corporation
www.hess.com / Revenue: $4.8 billion / HQ: New York / Employees: 2,304 / Specialty: Exploration and production of crude oil and natural gas / Evelyn MacLean, vice
president of global supply chain: "The time to get started on your collaborative initiatives is when you make your selections of key suppliers. The earlier, the better."

Leap of Faith
Hess Corporation created a multi-supplier forum to foster
collaboration on its Stampede deepwater project. By Tim O'Connor
In some industries, supply
chain functions are a central part
of business planning and transformation within the organization.
That has traditionally not been
the case in the oil and gas industry,
according to Evelyn MacLean, vice
president of global supply chain
at Hess Corporation. MacLean,
working with vice president of lean
deployment, Dennis Creech, has
sought to change that approach by
bringing a new level of cooperation across the supply chain to the
company's latest offshore project.
"Gone are the days where you
want procurement professionals
just to be commercial experts,"
MacLean says. "They have to be
change agents. They have to be
business transformation leaders.
The more they understand human
behavior, the more value they can
bring to their organization."
Some supply chain personnel
struggle to affect change in their
organizations. It is critical to
involve supply chain leaders in the
decision-making structure, she
adds. "Some say it's in the delivery,
but sometimes organizations need
to take a leap of faith to see the value supply chain can add when they
have the opportunity to influence
significant business decisions."
MacLean, a 30-year veteran
of the industry, believes that
integrating supply chain into the
hearts of businesses can help energy companies become leaner and
70

Supply Chain World FALL 2017

better manage downturns. "The oil
and gas industry has always been
faced with cycles," she says, noting
that the geopolitical landscape can
affect energy prices just as much as
supply and demand fundamentals.

Creating the Environment
for Communication
A pioneer of lean in its industry,
Hess is extending the practice to
its suppliers. MacLean, who joined
Hess two years ago, says it prefers
vendors that are willing to collaborate on opportunities for improvement and waste reduction.
This approach led to the creation of a multi-supplier forum
to provide input on Hess' latest
project, the Stampede Deepwa-

The Black Lion drill ship was
deployed to Hess' Stampede
development, which is one of the
largest undeveloped fields in the
Gulf of Mexico.

ter development in the Gulf of
Mexico. The Stampede project was
sanctioned in 2014 and production
is anticipated to begin in the first
half of 2018. Hess estimates that
the undeveloped oil and gas reservoir, located 33,000 feet below
the water's surface, holds as much
as 350 million gross recoverable
barrels of oil, natural gas liquids
and natural gas.
"Hess is working with our
strategic suppliers to implement lean thinking and tools to
identify and remove waste that
can deliver 40 percent or more
improvements in cycle time and
cost while strengthening safety
performance," Creech says.
"Ultimately, we are trying to cre-



Table of Contents for the Digital Edition of Supply Chain World - Fall 2017

Contents
Supply Chain World - Fall 2017 - Cover1
Supply Chain World - Fall 2017 - Cover2
Supply Chain World - Fall 2017 - 1
Supply Chain World - Fall 2017 - Contents
Supply Chain World - Fall 2017 - 3
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