2.1.4.3Supply Chain

Management approach

The current business environment is driving major changes, with risk resilience and new market and environmental standards requiring that the supply chain organization adapts and evolves. To continue the drive towards the energy transition with the highest level of safety, performance and quality, the supply chain management continues its evolution into a strategic globalized function. Leveraging long-term relationships with key supply chain partners contributes to accelerating the time-to-market objective and cost-competitiveness in the proposal phase.

The pandemic and the geo-political context have demonstrated the value of ’framing global, acting local’ and aligning supply chain strategy with the product life-cycle. The supply chain organization contributes to SBM Offshore’s strategy as described in section 1.3.2 and is part of the Global Resources & Services organization explained in section 1.3.3.

2022 performance

The supply chain organization has continued developing further around six strategic pillars to enhance the resilience of the function as a whole.

Supply Chain Excellence

  • Strengthening the performance of the function on a global scale to include Projects, Operations and non-Project related business with the following activities:
    • Continue developing Quality Assurance and Quality Control capabilities within Supply Chain.
    • Expanding the effectiveness of SBM Offshore’s enterprise management processes by continuously learning from experience and upgrading processes specifically related to vendor performance assessment, purchasing, post order management and vendor qualification.
    • Driving key global issues such as data capabilities, human rights and sustainability goals within the Supply Chain community.

Strategic Sourcing

  • Strategic early engagement with vendors during the proposal phase of SBM Offshore’s projects to realise increased cost-competitiveness and accelerated time-to-market.
  • Co-development with key vendors on energy transition initiatives and new technology for lower emission solutions for FPSOs.
  • Strengthen business alignment between SBM Offshore and its supply chain community with dedicated workshops and global events such as an annual Global Vendor Day.

Product Focus in Supply Chain

  • Optimize resource management on SBM Offshore’s projects to maximize utilization of skill sets, for example by developing a piping procurement hub in India, servicing all projects.
  • Further alignment with the Product Line organization with a dedicated capability for FPSOs, and renewable projects, strengthening post-order management capabilities.

Energy Transition

  • Work with key vendors to co-develop technologies for carbon capture.
  • Assess scope 3 emissions for key components on SBM Offshore’s FPSOs and work with key vendors to explore avenues to reduce emissions.
  • Support renewable product focus for development of new energy projects.

Regional Supply Chain Development

  • Utilize regional supply chain skills and market knowledge from local talent in Bangalore (India), Rio de Janeiro (Brazil) and Shanghai (China).

Digital Transformation

  • Major contributor in the design and implementation of SBM Offshore’s global ERP system.
  • Work with the external supply chain community to support digital-twin objectives.
  • Support the data-migration activities to enable automated data-driven reporting and performance measurement of the function.

Performance Measurements:

  • 12 Steering committee meetings organized with strategic vendors.
  • 3,045 vendors qualified as of October 31, 2022.
  • 99.6% of vendors have signed the Supply Chain Charter.
  • 295 vendors have responded to SBM Offshore supply chain organization’s new human rights assessment.

future

Next year, Supply Chain will continue its evolution towards a strategic globalized function to achieve and maintain high standards of performance across all areas of its business including, but not limited to, supporting human rights, climate change measures, digitalization, quality assurance and quality control, resource and talent management across all SBM Offshore’s centers, enterprise management systems, vendor performance and qualification assessments, and energy transition measures.