Supply Chain Management Strategy

Jun 1, 2023

The Supply Chain Management Process at Ecopetrol is carried out through a strategic model of transversal and enabling supply, ensuring the effective, responsible, and sustainable long-term supply of goods and services by a segmented manner in terms of cost, opportunity, performance, quality, and risk level, with trained and motivated human talent in an organizational and technological environment based on best practices. It is backed by policies, regulations, best management practices, digitization, and adoption of technological enablers, under a framework strengthened by high standards of ethics, transparency, and due diligence.

Under this framework, the Process has defined 5 capabilities to have a resilient, flexible, agile, transparent, traceable, digital and sustainable supply chain, for which reason, Ecopetrol has established 2025 objectives for each of the capacities specified into its sourcing strategy:

Development and improvement of local and regional capacities, considering its productive vocations into the procurement strategies, as well as contractual and market practices aligned with the environmental and digital agenda.

Challenges 2025:

  • Strengthen strategies aligned with the Carbon Neutral Challenge
  • Waste management optimization
  • Materials management improving
  • Clean energy sources
  • Water use measurement system
  • Intelligent systems for energy management

Development and deployment of commercial instruments with main suppliers to build-up technological innovations and efficiency initiatives focused on long term relationships, standardization, and life cycle cost.

Challenges 2025:

  • Business models to face a potential stagflation scenario.
  • Business models for unconventional categories (offshore, solar, wind, geothermal, etc.)
  • Contractual models with risk and rewards schemes

Decision making based on simulation of probable scenarios, based on analytics, risks and critical market variables monitoring.

Challenges 2025:

  • Near-shoring, On-Shoring or Offshoring strategies
  • Predictive analytics
  • Supply assurance 

Improving supply chain efficiency through technological, analytical and 4th Industrial Revolution capabilities, as well as cloud migration, according to Ecopetrol´s digital transformation roadmap.

Challenges 2025:

  • Increase benefits of Cloud Sourcing
  • One click purchases
  • Blockchain capabilities (tracking, smart contract)
  • IoT capabilities (Smart Warehouses)

Coordination between investment plans and procurement strategies, evolving to a predictive demand model to ensure the optimal level of inventory and a timely attention of business requests.

Challenges 2025:

  • Maximize benefits of 4PL logistics model
  • Predictive stock Management
  • Predictive demand management

Additionally, the supply chain management seeks to implement value generation initiatives with its suppliers, framed under processes´ optimization based on innovative technologies, improve territorial development contribution, carbon footprint reduction through decarbonization models, renewable energies, circular economy, and water management strategies, among others. For its deployment the initiatives must have technical approval.

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