2021 Report
2021 Report
2021 ESG Metrics

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.

CASE STUDY

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:

  • Cost savings of $136,856 over diesel and 704 tonnes CO2e emissions avoided by using a CNG solution
  • Local vendors used for maintenance resulted in a 63% reduction in kilometres driven on public roads reducing the risk of a transportation safety incident
  • Leased as bi-fuel with option to alternate fuel sources, mitigating operating and logistics risk
  • Operating cost savings for this project in 2021 were $1,065,812

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.

Contractor Management

Contractor management is an important part of our supply chain and health, safety and environment program. The program involves the verification of contractors, sub-contractors and carriers that we hire to ensure they have a health, safety and environment program and safety performance that meets or exceeds our requirements.

Vetting Contractors

Vetting contractors helps reduce our corporate risk and SECURE uses a contractor screening service to help manage this activity. Both legacy companies used different service providers to manage this process and in Q4 2021, one contractor management screening system was selected for implementation as an integration synergy cost savings opportunity. The supplier chosen provides the highest-level contractor ESG screening and all suppliers will be required to complete the Supplier Code of Conduct as part of onboarding to the new contractor management screening service.

 

Looking Ahead

  • Monitor and evaluate ESG screening data from our third-party contractor management screening service to establish baseline data to then develop a plan to set ESG criteria for our suppliers
  • SECURE’s Supply Chain and Strategic Sourcing teams across the business segments continue to manage supply chain  risks and overcome disruptions to continue to maintain supply for our customers
  • The Supply Chain team, as part of the integration of the two organizations, will continue to implement procedures and standardized vetting scorecards across the Midstream Infrastructure reporting segment to improve commercial,  operational, safety and contractual terms through proven and sustainable sourcing efforts