2.11Supply Chain


The Supply Chain function remains focused on supporting the projects with the highest level of safety, performance and quality. In 2018, Supply chain resources of the Company's worldwide locations were amalgamated and now report to the centralised Group Supply Chain function under the Resources and Services division. As such, responsibility for the processes, tools and project supply chain activities is now under the same umbrella allowing monitoring of the business synergies, better sharing of the lessons learned and continuous improvement of the ways of working. Throughout this year, particular attention and efforts on vendor qualification have been maintained in order to ensure that subcontractors’ capabilities have been properly assessed before commercial engagement. Group Supply Chain has also actively participated in the development of supply chain activities in China through the set-up of the local team and organization and the definition of a plan to expand our approved vendor data base with local Companies.

2018 performance

Key Achievements

  • In a permanent objective to achieve better quality, the vendor qualification campaign launched in 2017 has been pursued. This exercise was undertaken with relevant internal stakeholders to guarantee a multi-dimensional assessment
  • Close collaboration between strategic sourcing and all Company Product Lines to better define objectives and priorities, to deliver the most appropriate procurement strategies, framework agreements and market intelligence information for each strategic category.
  • The collaboration with SBM Offshore’s strategic vendors has been further enhanced and key events have again been organized this year, such as a Global Supply Chain Vendor Day and Executive and Operational Steering Committees.
  • High focus has been maintained on the importance for our vendors to adhere to our Code of Conduct. In this respect, suppliers that have gone through the revised vendor qualification process are required to sign the Supply Chain Charter, in order to fulfill the Company commitments to meet human rights and labor law standards, among others.

Performance measurements:

  • 38 Frame Agreements signed .
  • Global Supply Chain Vendor Day in Rotterdam, the Netherlands.
  • Three Steering committee meetings organized with strategic vendors.
  • 492 vendors qualified under revised qualification process since 2017, of which 99.4% signed Supply Chain Charter.


SBM Offshore plans to finalize the vendor qualification campaign and finalize implementation of the outsourcing of this service, so as to allow the Company to put the focus on vendor performance monitoring. The Company also intends to pursue Supply Chain development in China by qualifying more vendors and ensuring efficient and timely support is provided to the projects’ local supply chain activities.

SBM Offshore also intends to implement a long-term strategy, allowing the Company to accommodate future growth through:

  • Embedding the Fast4WardTM principles into the Supply Chain function.
  • Working in integrated teams to better benefit from Lessons Learned.
  • Increasing flexibility by pursuing the subcontracting of post-order management activities (such as expediting, inspection and vendor documentation review).
  • Supporting synergies across projects on key equipment, with the early involvement of the Strategic Sourcing team.