2011 Annual Report - SBM Offshore

3.9.2 Supply Chain in Focus
SBM Offshore currently operates in 18 countries around the world - but works directly with suppliers from 46
countries. Its principal suppliers are mainly located in Europe, the US, Singapore and Brazil. In 2011, the
Company procured 16.25% of all deliverables and services from developing countries.
Vendors who wish to bid for contracts with the Company are assessed using a web-based Vendor Relationship
Management (VRM) tool. In addition the Company ensures that its policies and standards regarding business
ethics, insurance and other key matters, are covered in the Special Terms & Conditions set for all contracts.
These are always shared with potential suppliers at the bidding stage of every project.
Compliance with the Company’s Code of Conduct is mandatory for all suppliers and for their subcontractors and
agents.
During 2011, the Company audited 43 suppliers using a product classification system, which ranks suppliers from
A (main suppliers, such as construction yards) to D (suppliers of less critical equipment or services). All Vendors
supplying A to C products are subjected to a quality assessment process;; those categorised as A or B, are
audited every 3 years. 53 corrective action reports were issued in 2011 following these audits.
Vendor Relationship Management
Suppliers are selected upon compliance with the industry standards and market conditions. The Company’s VRM
portal is publicly listing the documents required to enter the pre qualification process hence needed for the
evaluation of the supplier and proposed equipment:
• Completed standard Vendor Qualification Questionnaire
• ISO certifications
• Quality manual
• HSE manual
This is a customized selection from the SBM Offshore N.V. Annual Report 2011
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