Supply Chain is a critical part of our business and operations, and in line with our commitment to Continuous Improvement and a High Performance Culture, we are evolving our Procurement and Supply Chain functions to improve cost efficiency, operational effectiveness and compliance.
The two initial priorities for enhancement are Governance and Sourcing, delivered through an updated Supply Chain Policy and new Shared Service Centre (SSC).
After consultation with our Operations teams, we are pleased to present a simplified and improved Supply Chain Policy. The new Policy is streamlined so it is easier to use and understand, but maintains the same rigorous standards. We have also created 10 Supply Chain Essentials to identify key areas we should all be thinking about when it comes to supply chain.
The revised Policy and 10 Essentials can be accessed here.
In an effort to improve our global sourcing and supply chain management, we are also creating a Shared Service Centre (SSC) for Supply Chain. Within the SSC, we will implement a category management approach at the regional level, similar to the analytically-driven way that we have been managing our global categories to achieve the lowest total cost of ownership for the goods and services categories that we manage.
The model will be piloted with SSC-East, which will be based in The Hague, Netherlands and will serve our West Africa and Russia operations. SSC-East will develop and implement a category management approach for the two regions to improve sourcing and supplier management while controlling risk and capturing the scale opportunities and synergies between the different sites.
We remain committed to in-country spending and working with host-country suppliers to ensure we give our host communities opportunities to benefit from our operations. We will also continue to track procurement at the local level and support our community business program so that local suppliers have the capacity to effectively compete and win business.
“We expect that the updated Supply Chain Policy and new Shared Service Centre structure will improve the overall maturity of our supply chain management, strengthen our supply chain governance and compliance, and be more cost efficient,” said Paul Tomory, Executive Vice-President and Chief Technical Officer. “It will support our long-term priorities of being nimble, cost-effective, and high-performance operators.”