2.10Supply Chain


The Supply Chain function remains focused on improving its method of procurement of goods and services, while prioritizing safety and quality. This year particular focus was put on strengthening the Vendor Qualification process to better assess subcontractors’ capabilities upfront. A systematic assessment of other dimensions took place, such as collaboration with the Compliance function, to ensure this aspect is fully embedded in the Supply Chain activities.

The Supply Chain strategy is built around three main guiding principles, bringing benefits to both parties and ultimately adding value for the Company’s clients:

  • Strategic partnering
  • Quality improvement
  • Strategic Sourcing

2017 performance

  • A vendor qualification campaign was conducted as part of achieving more ambitious objectives for quality. It resulted in an enhanced portfolio of vendors with a scope on current projects. This exercise was undertaken with relevant internal stakeholders of the Supply Chain to guarantee a multi-dimensional assessment.
  • Strategic sourcing activities, in-line with the Company’s Product Lines’ requirements and priorities, have led to key deliverables such as an approved list of vendors, framework agreements and market intelligence information for each category.
  • The collaboration with SBM Offshore’s strategic vendors has been further developed through various key events: Vendors Compliance Day, Partner Technology Days, Executive and Operational Steering Committees and Supply Chain Vendor Days.
  • Embedded in the contractual agreement signed by every supplier is a commitment to adhere to the SBM Offshore Code of Conduct or similar code. Signature of the Supply Chain Charter as part of the supplier qualification process is an indicator of commitment to meet Human Rights standards among others. In cases where a supplier does not sign the Charter, it is considered a red flag and further investigation and clarification is required before the supplier will qualify.

Performance measurements:

  • 37 Frame Agreements signed
  • Supplier days in three locations
  • 7 Steering committee meetings organized with key vendors
  • A Compliance Vendor Day organized in Monaco
  • 152 vendors qualified under revised qualification process of which 97% signed Supply chain charter.


The Supply Chain function has an important role to play supporting Product Lines, Projects and Operations in their ambition to achieve customer satisfaction and add value to projects, particularly in the current business environment. In this vein, greater emphasize will be put on globalized framework agreements with vendors that have broad and diversified product portfolios. Focus on strategic vendors’ account activities will continue for the coming year. The vendor qualification campaign will evolve to respond to developments in the market place, including intensified efforts to embed sustainability into Supply Chain activities.