Situation
- The largest customer for the client had shifted procurement strategies and launched a procurement process to select a sole vendor for the next 10 years of work, at current run rates nearly $13B in value
- The client was struggling to reconcile the lower cost requirements needed to be competitive in the bid with the profitability the project would produce
- A lack of ability to view various scenarios and the sensitivity of financial outcomes to key drivers had caused their process to stall
- SLKone was engaged to build a more flexible project financial model that incorporated key profitability drivers as well as award scenarios
Bespoke Solutions
- SLKone began by holding interviews with key contributors to the tender process to identify key drivers of performance, as well as background context for the model’s construction
- Over the course of 10 days, SLKone built a fully integrated financial model driven by operational inputs with flexibility for Well award scenarios, full reporting suite and sensitivity analysis to key assumptions
- A scenario analysis was performed to identify the optimal target well sites for Revenue and Profitability
- Market research was performed to understand the customers desire for per well cost reductions and to indicate winning proposals
Leading With Results
- Enhanced client capabilities to tailor proposals and aggressively target the optimal site award
- Developed a common understanding of target profitable sites and the drivers of profitability and cash flow
- Decoded the operational metrics driving project profitability and enabled the team to set well-defined targets to operations teams in order to realize a value adding outcome