Working as One Survey Insight

An OEUK Survey

Building a healthy, prosperous offshore energy sector requires sustainable contracts and strong supply chain relationships.

OEUK’s Supply Chain Principles were written by industry for industry and define good procurement practices. By promoting and implementing these principles, the UK energy sector can create a more efficient, resilient, and sustainable supply chain, ultimately contributing to a secure and affordable future for the energy sector.

The biennial Working as One survey measures industry performance against the Supply Chain Principles. The survey provides a unique opportunity for purchasing organisations to receive constructive feedback from their supply chain and support continuous improvement. The energy sector needs to remain an attractive proposition for these companies. OEUK will use the data to ensure the industry adheres to the supply chain principles and to promote fair and sustainable commercial relationships between purchasing companies and the supply chain

Download Supply Chain Principles PDF
  • Working as One Survey Findings
  • Risk and Reward
  • Payment Performance
  • Openness to Innovation

A significant proportion of survey respondents (92%) agreed that the Supply Chain Principles were widely understood within their organisation, 9% more than in 2021. There are positive signs that the principles have made a strong impression on a broad section of the industry including operators, Tier 1 contractors, and SMEs.

Risks and costs should be borne appropriately, proportional to the work scope and the opportunity for good performance should benefit everyone.

Contractual terms and conditions will seek to utilise industry standards including mutual payment terms. Buyers shall strive towards supporting the Government Prompt Payment Code and 30-day payment terms.

Tender processes and evaluation should be based on value- added rather than unit rates and be flexible to evaluate alternative offers as part of the bidding process.

An alternate bid (either technical or commercial) which a buyer sees as a winning proposition should be selected for award on its merit.

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Working As One Survey 2023

Analysis of Results

This report, commissioned by OEUK and prepared by Astrimar Ltd, examines collaboration within the UK’s offshore energy supply chain. Building on the 2021 survey, it assesses adherence to OEUK’s 10 Supply Chain Principles, including risk-sharing, payment performance, and competency. The survey, open from July to November 2023, received 407 responses from operators and Tier 1 suppliers in the UK Continental Shelf (UKCS).

Read the report

What Will OEUK Do With The Results?

  • 01.

    Company Reports

    Buyers that participated in the survey received an individual company report with their anonymised supply chain feedback. The report highlighted the Supply Chain Principles that they performed best at and those which required more work. Each company was also provided a peer group ranking, showing where they were positioned amongst fellow operators and tier 1 contractors.

    OEUK continues to work with these organisations to drive forward positive improvements that will ensure they are an attractive customer of choice for their supply chain partners.

  • 02.

    Supply Chain Principles Awards

    The Supply Chain Principles Awards, based on the Working as One survey results, celebrate purchasing companies who received the most positive supplier feedback and demonstrate exemplary commitment to the principles. 10 Gold, 9 Silver, and 4 Bronze awards were awarded to participating purchasing companies.

     

     

2024 Gold Award Winners 

Supply Chain Management Good Practice

The results of the Working as One survey provide valuable insights into industry procurement practices. OEUK has established member working groups to help develop good practice for the supply chain for the benefit of the entire energy sector. The groups were made up of companies ranging in size from operators and tier 1 contractors to micro-organisations, who shared their own expertise and reached consensus on supply chain management.

Procure to Pay (P2P) Good Practice Guide

Prompt payment is core to cash flow, which is essential for SME’s. It also strengthens relationships and ensures financial stability. Broad industry support for the government’s prompt payment code and 30-day payment terms is crucial.

The objective of this good practice guide is to support the effective management of procurement activity, ensuring consistency in managing the Procure to Pay (P2P) process and on-time payment to suppliers.

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Tender Process Good Practice Guide

Striking the right balance between risk and reward ensures both parties are motivated to invest, collaborate effectively, and reap the benefits of a successful partnership. Purchasing organisations should discuss the balance of risk and reward with the supply chain before and throughout the contract lifecycle.

This year, OEUK will publish guidelines on good tendering practice that will outline the importance of early engagement with the supply chain and agree the allocation of risk. The guidelines will improve tendering activity and make the bidding process more consistent. Good performance should benefit all parties.

OEUK Guidelines

Contracting Models Guide

The UK supply chain has innovative solutions for several segments of the energy sector, but purchasers and their supply chain must be open to introducing innovation.

OEUK will publish a guideline on contracting models, explaining which kinds work best to encourage innovation in any given context.

OEUK Guidelines

The 2025 Working As One Survey invites companies within the UK’s offshore energy sector to register and participate in assessing industry collaboration based on OEUK’s 10 Supply Chain Principles, including risk-sharing, payment performance, and innovation

Register to participate