2.10Supply Chain

Management approach

The Supply Chain function remains focused on supporting the projects with the highest level of safety, performance and quality. In order to support the strategy launched last year, to have an integrated Group Supply Chain division under the Resources and Services Business Unit, the key resource centers have been reinforced and professionalized.

As a result of the ramp-up in projects, extra staff has been deployed and allocated to the key resource center. Vendor management, strategic sourcing, capability and project supply chain activities are under the same umbrella, allowing a fully integrated supply chain and a flawless execution. Throughout this year, particular attention and efforts on vendor qualification have been maintained in order to ensure that subcontractors’ capabilities have been properly assessed before commercial engagement. Group Supply Chain has also confirmed the development of supply chain activities in China through the development of the local team and organization, and the expansion of the approved database with local Companies.

2019 performance

Key Achievements

  • In order to efficiently pursue the vendor qualification efforts and to strengthen the support to the projects, the Vendor Qualification activities have been outsourced to a reputable and experienced large company with a worldwide footprint.
  • Close collaboration between strategic sourcing and all company product lines has been enhanced to better understand the requirements and expectations and define objectives and priorities, to deliver the most appropriate procurement strategies. In addition to framework agreements, the category management team is continuously supporting the business by providing key strategic insights (vendor surveillance, market intelligence, etc.) and operational assistance (facilitate vendors’ early engagement, dispute resolution, etc.).
  • The partnerships with SBM Offshore strategic vendors has been further reinforced with the implementation of Key Account Management activities covering the full lifecycle. Executive and Operational Steering Committees and Global Vendor Day have again been organized this year.
  • Highest focus has been maintained on the importance for the Company's vendors to adhere to the SBM Offshore Code of Conduct. In this respect, as part of the vendors qualification process, the Company asks vendors to sign its Supply Chain Charter. In line with Company commitments to reach its sustainable development aspirations, the Supply Chain Charter has been upgraded to reinforce human rights, eco-footprint and waste management aspects.
  • In addition to other digital initiatives, Group Supply Chain is one of the main stakeholders involved in the design and implementation of SBM Offshore's global Enterprise, Resource, Planning (ERP), with the objective of streamlining the flow of information and processes all along project execution up to the operations activities. As such, Group Supply Chain is deeply contributing to the Company's Digital Transformation.

Performance measurements:

  • 10 Frame Agreements signed in 2019
  • Global Supply Chain Vendor Day in Amsterdam, the Netherlands
  • Nine Steering committee meetings organized with strategic vendors
  • 985 vendors qualified under revised qualification process since 2017, of which 99.1% signed Supply Chain Charter

future

Next year, Group Supply Chain will maintain the recruitment efforts to support company development in all Resource Centers with an agile and fully integrated organization.

Through its continuous improvement and global integration, Group Supply Chain has adopted a full lifecycle approach from early engagement at framing stage to Operations activities. Group Supply Chain ensures the strategy defined at Win phase is well implemented during the Execution.

The Fast4Ward® Transformation principles and objectives are fully implemented within Group Supply Chain strategy, based on two main pillars: Strategic Sourcing and Modules subcontracting.