A major survey aimed at improving how companies conduct business is launched today by Offshore Energies UK (OEUK) to assess how the industry is treating its supply chain.
Encompassing companies of all sizes from large contractors delivering integrated energy services to SMEs with innovative solutions and specialist capabilities, the UK offshore energy industry has established a supply chain with a world-class reputation.
Katy Heidenreich, OEUK’s Supply Chain and People Director said,
“The health of the supply chain is dependent on sustainable contracting practices and a cooperative mindset, but our research reveals many businesses face pressures on several fronts including negative commercial behaviours.
“The Working as One survey will measure how companies are adhering to the Supply Chain Principles, a set of 10 commercial behaviours developed by the industry to promote continuous improvement. It seeks feedback on key areas including timely payment of suppliers and clarity regarding contractual terms and conditions.
“Supply chain organisations will be asked to rate their customers’ performance according to the Supply Chain Principles so we can identify areas for improvement while also highlighting opportunities to share excellent procurement practices across the industry. Driving improvements in commercial behaviours supports our efforts to sustain supply chain companies and help them build capabilities to deliver a home-grown energy transition.”
Feedback from the 2021 Working as One survey revealed three areas for improvement. These comprised payment performance, the need to establish an appropriate balance of risk and reward between customer and supplier, plus a greater emphasis on encouraging openness to supply chain-led innovation. Working with members, OEUK has since developed guidelines to address these areas with Procure to Pay good practice and commercial contract reference guides due to be published imminently.
Organisations purchasing goods and services who receive feedback from their supply chain will be eligible for the Supply Chain Principles Awards, which celebrate companies with an outstanding commitment to strengthening business relationships with their supply chain.
Open to all offshore energy companies, the survey is open until September 29. To participate, email [email protected].