ENERGY FOR THE FUTURE
STRATEGIC STRENGTH AND LOCAL IMPACT
Simon Harman on Leading MEPAU’s Supply Chain Forward
With over two decades of experience in the oil and gas sector across the UK and Australia, Simon Harman brings both strategic foresight and hands on expertise to his role as Head of Supply Chain at Mitsui E&P Australia Pty Ltd (MEPAU). From fostering strong supplier partnerships and embracing digital transformation to driving local and Indigenous engagement, Simon has played a pivotal role in aligning MEPAU’s supply chain strategy with its operational and community-focused goals. In this interview, he reflects on the experiences that shaped his leadership, how MEPAU is preparing for future supply chain challenges, and what advice he offers to the next generation of professionals entering the energy sector.
Local Engagement in Supply Chain
MEPAU emphasises engaging with local businesses and Indigenous enterprises. How does your supply chain strategy support this commitment, and what initiatives are in place to assist and help these relationships?
The Supply Chain team, and MEPAU as a whole, is committed to identifying opportunities for local and Indigenous businesses to consider. We actively engage with local Chambers of Commerce, government representatives, and consult regularly with Indigenous groups, while remaining alert to individual opportunities as they arise.
I am particularly proud that we have developed a set of simplified terms and conditions which, where appropriate, are used to engage local and Indigenous suppliers. The rationale behind this approach is twofold: to reduce onboarding times and to make MEPAU a more attractive and accessible partner for these businesses.
“We try in every possible way to integrate key suppliers into all preparation phases of planned maintenance”
Career Journey
Can you share your career journey and what led you to your role as Head of Supply Chain at MEPAU? What experiences have most influenced your approach to leadership in supply chain management?
Like many people, I fell into the world of supply chain. As part of my Business degree in the UK, I was required to complete a year in industry. I was fortunate to be one of two students selected to work at Shell Exploration and Production in Lowestoft, UK. On my first day, I was assigned to the Supply Chain team and the other person to Finance and the rest is history!
I thoroughly enjoyed my year there, and it set the foundation for building my career in the supply chain sphere.
After graduating, I developed my experience through roles in expediting, materials control, procurement, and contracts within the oil and gas industry initially in the UK and, for the past 20 years, in Australia. With this ever broadening experience, leadership opportunities followed, eventually leading to my current role as Head of Supply Chain at MEPAU.
My approach to leadership has been shaped by the experiences I’ve had with the leaders I’ve worked under. I’ve focused on emulating the traits I admired most, while consciously avoiding the behaviours I felt were ineffective or disengaging.
Supplier Relationships and Quality Assurance
What strategies do you employ to build strong, transparent relationships with suppliers, and how do you ensure they consistently meet MEPAU’s standards for quality and safety?
For suppliers with whom we conduct significant business, my strategy is to solidify the relationship through the award of a Master Service Agreement. This not only formalises our partnership but also serves as the foundation for conducting periodic performance reviews. These reviews provide a forum where quality, safety, and other key issues can be discussed openly and constructively by both parties.
Digital Transformation in Supply Chain
In what ways is MEPAU leveraging digital technologies to enhance supply chain operations, and what recent advancements have had the most significant impact on efficiency and transparency?
MEPAU is in the process of transitioning from a non-operator to the operator of the Waitsia gas field, one of the largest onshore gas fields in Australia. As part of this transformation, we have invested in the implementation of the Coupa Procure to Pay system to support the increased procurement needs across corporate, project, drilling, and operational functions.
The efficiency gains delivered by Coupa will enable MEPAU to manage this heightened level of activity with only minimal additional resourcing. At the same time, the system provides significantly enhanced reporting capabilities, supporting both the Operations and Finance teams with greater transparency and insight.
Risk Management in Supply Chain
Given the complexities of the energy sector, how does MEPAU manage risks within its supply chain to ensure continuity and resilience?
One of the biggest risks to MEPAU is the loss of oil and gas production from our operational facilities. Ensuring the availability of equipment and materials to restart production in the shortest possible timeframe is a key deliverable for the Supply Chain Function. A combination of transparency and accuracy in our inventory, along with the ability to quickly source items using Coupa, which helps us identify onboarded suppliers and purchasing history is a critical risk mitigator.
Of equal, and possibly greater, importance are our relationships with our “go to” suppliers, the partners we rely on in times of crisis. We nurture these relationships by visiting them, and relaying our genuine appreciation to them.. When suppliers feel valued, they respond in kind.
And finally, pay your suppliers on time. We ask a great deal of them, and there’s only one thing we must do in return, make sure they receive payment as promised.
During a recent project, our main contractor went into administration, leaving sub contractors understandably nervous about whether they would be paid. MEPAU recognised that without guarantees, these sub contractors would likely leave the site, halting the supply of goods and services and jeopardising project completion.
We negotiated with the administrator to manage invoice payments to the affected parties on a case by case basis and made a point of informing them directly that payments were on the way, as promised.
The goodwill generated toward MEPAU from this experience has been immense, and it’s something I, as a leader, am genuinely proud of.
Challenges in Energy Sector Procurement
What unique challenges do you face in procurement within the energy industry, and how does MEPAU address these to maintain a competitive edge?
In the energy industry, the value of a Supply Chain team is largely judged on its ability to ensure that goods and services are available at the right place and at the right time to prevent loss of production or drilling time. This almost always takes precedence over cost efficiency.
Of course, cost efficiency is important and should be pursued with as much rigour as possible, but we must not lose sight of the bigger picture. Ultimately, our performance will be measured by our ability to keep operations running without interruption.
Future Trends in Supply Chain Management
What trends do you see shaping the future of supply chain management in the energy sector, and how is MEPAU preparing to adapt to these changes?
The continued evolution of system based Procure to Pay and inventory processes will play a significant role in shaping the future of supply chain management. MEPAU is committed to ongoing investment in this area as part of our broader aspiration to operate as a low cost producer.
“In the energy industry, the value of a Supply Chain team is largely judged on its ability to ensure that goods and services are available at the right place and at the right time”
Advice for Aspiring Supply Chain Leaders
As a leader in supply chain management, what advice would you give to those looking to advance their careers in this field, especially within the energy industry?
I recall that when I started my career at Shell, the HR Manager at the time told me that the energy industry wasn’t a viable long-term career option because “the oil and gas will run out soon.”
Several decades later, both the industry, which has evolved and continues to evolve, and my career are still going strong.
To the next generation of leaders: I suspect you’ll hear similar advice from some quarters. Ignore it. There will always be a need for energy in the world. Jump aboard, stay flexible, and see where the journey takes you!
Mitsui E&P Australia (MEPAU) is a leading energy company based in Western Australia, dedicated to delivering a reliable and sustainable energy supply. As a subsidiary of Mitsui & Co., Ltd., MEPAU operates a diverse portfolio of oil and gas assets across Australia, including the Waitsia Gas Project, one of the country’s largest onshore gas developments.
Simon Harman Head of Supply Chain