Supply Chain Management
As a result of SECURE’s service offering, our supply chain is unique in that SECURE acts both as a supplier on our customers’ sites providing products and services across a variety of industries and as a procurer of products and services at our facilities. When providing services as a supplier on our customers’ sites, SECURE adheres to our customers’ standards of health, safety and operational excellence.
“2021 was a challenging year managing the supply of drilling fluids and production chemicals given commodity prices, logistic disruptions and COVID-19 impacts. Our Strategic Sourcing and Procurement team managed to have all products available that were requested by our customers ensuring business continuity for their operations.”
-Mark Connors, Senior Manager, Strategic Initiatives, Fluid Management
When purchasing or engaging with vendors, at a minimum, they are vetted through our third-party vendor management system. In addition, suppliers (including vendors, contractors and carriers) are screened across commercial, operational, safety and contractual terms. In the fourth quarter of 2021, SECURE worked with our new third-party vendor management vetting system to build additional screening for ESG criteria.
2021 was a challenging year in sourcing and procuring globally due to COVID-19 impacts, inflation, commodity prices, supply chain disruptions and logistic constraints. However, using market intelligence, applying sourcing strategies and leveraging long-term relationships, the Supply Chain teams across SECURE’s reporting segments were able to manage the risk with impactful results and we continued to deliver to our customers without disruption to our operations and those of our customers.
Silverberry Midstream Processing Facility Selects CNG Pump
In 2021, the Silverberry Midstream Processing Facility was undergoing maintenance upgrades, including the delivery of a new pump. The Midstream Infrastructure Supply Chain team was tasked with conducting a market analysis for the unique pump requirements for this project and to detail and rank potential solutions which would eliminate Operational Risk and downtime. Using both historical and current intelligence, the Supply Chain team was able to focus on certain equipment options that would provide both environmental and commercial benefits. The Supply Chain team applied an advanced sourcing model to the proposals so that a thorough vetting of each offering could be assessed and a timely implementation plan could be executed. After evaluation, a compressed natural gas (CNG) pump was selected due to superior commercial, environmental and social considerations, including:
Supply Chain Governance
The Supply Chain team in the Midstream Infrastructure reporting segment applies mature supply chain principles including strategic sourcing plans, annual contracting plans and vendor scorecards. Decisions are guided by mitigating business risk through advanced strategic sourcing protocols to achieve commercially beneficial and sustainable outcomes. Implementing our scorecards for vendor screening process:
- Eliminates bias
- Verifies operational opportunities and risks including local content and Indigenous inclusion
- Evaluates Health, Safety and Environment criteria, including sustainability performance and ethics
- Commercial merit using a total cost model
- Contracts with improved scopes and terms and conditions
- Transparent decision-making criteria
The scorecard process ultimately yields an outcome that improves various service offerings and moves toward a best-in-class vendor base.