Achilles Research: Supply Chain Risk - A Study of Procurement in the UK

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Research summary

Supply Chain RiskA Study of Procurement in the UK

T2474 Achilles Reasearch Doc Issue1 Draft 20.indd 1 11/06/2012 13:07

3

The research

Earlier this year, Achilles commissioned an independent research project into the perceptions of risk and attitudes to supplier pre‑qualifi cation amongst UK procurement professionals. As a provider of information and services that help companies manage global supply chains, we wanted to fi nd out more about the importance procurement professionals place on pre‑qualifying suppliers and the risks they need to manage.

To gauge the views around pre‑qualifi cation of suppliers, amongst procurement professionals from a number of business sectors, Achilles Group commissioned IFF to undertake the research. During December 2011 and January 2012, IFF interviewed 200 businesses by telephone, each with more than 250 employees. They asked a range of questions to procurement professionals across the six industry sectors listed below. The interviews in each sector were then weighted to be representative of the number of UK businesses with similar numbers of employees in that sector. This aimed to give the broadest possible picture of attitudes to pre‑qualifi cation by sector. The sectors selected for the project were:

■ Utilities, Mining and Quarrying

■ Manufacturing

■ Construction

■ Wholesale and Retail

■ Transport, Storage and Communications

■ Finance

By asking companies from different industry sectors and annual turnover to contribute, we can compare and contrast their views and the priorities they attach to risk. In turn, we aim to draw conclusions about attitudes to risk, supply chain management, and best practice business approaches.

IFF ResearchEstablished in 1965, IFF Research is one of the largest independent research organisations in the UK. It specialises in researching public policy, business and marketing issues in the UK and overseas, focusing on both private and public sectors. It has particular expertise in fi nancial services, branding and communication, business and enterprise, learning and skills and employment and benefi ts; its team also concentrates on healthcare, the environment and the third sector.


3

At Achilles we see our role as providing services that help companies to remove some of the more time consuming elements of the procurement process. Our services help companies to identify, evaluate and monitor suppliers throughout their global supply chains and enable them to identify and effectively manage supply chain risk.

We recognise that risk, and managing it, is playing an increasingly large part in the world of supply chains. This research provided a rare opportunity to explore the ways that companies look at pre‑qualifying suppliers and the risks associated with supply chain management. For example, what do procurement professionals perceive to be the biggest risks they face? How do they manage risk and mitigate its impacts?

Foreword

We wanted to explore the ways that companies look at risk in different sectors, their appetite for it, and the drivers for managing it. The research we commissioned provides an insight into what CPOs are worrying about, their greatest perceived risks, how big a risk is ‘too big’ and whether the business sector and size, influences this. We also wanted to assess the amount of risk management that is driven by the need for compliance with the law, or by the less tangible variables of brand and reputational management for that organisation.

I trust that you will find this report interesting.

Adrian Chamberlain, Achilles Group CEO

Contents The research ...........................................................2IFF Research ...........................................................2Foreword .................................................................3Global supply chain management. A balancing act .......................................................4

When it goes wrong ...................................................... 5What are CPOs worrying about? ............................6How great a risk is too great a risk? ......................8Keeping the plates spinning. Compliance, a driver or facilitator for risk management? ...........................................10

Pre‑qualifying suppliers is the key to effective risk management ...................................12

Pre‑qualify before tendering....................................... 13The cost of pre‑qualification ...................................... 14Data quality as a business imperative ....................... 14

Pre‑qualification, a pre‑requisite for procurement best practice ‑ confirmed ...............15

Conclusions ................................................................ 15


444

Global supply chain management.A balancing act

Global supply chain management is not for the faint hearted. Against a backdrop of highly competitive, high risk, global supply chains – dependent on tight margins and fast paced turnaround ‑ there are inherent risks in doing business.

This is borne out by our research, which found some interesting views and attitudes to high risk suppliers in the supply chain. This is illustrated by the fact that 43% of businesses were aware of a high risk supplier failing to meet their compliance requirements. Yet whatever level of risk the supplier posed for the business, they were seen as necessary links in the supply chain, and as such, managed as part of ‘business as usual’. A similar picture emerged across all businesses we talked to. There was no signifi cant difference between sectors or turnover of the businesses either, all faced similar risks across their own supply chains.

“A supplier was fraudulently identifying parts. They went to jail as a result. Our company had to reaccredit our suppliers.”

Transport, Storage and Communications sector

“It is about getting the product to the marketplace. It starts with the sourcing of the raw materials and then right through to the marketplace. If anything goes wrong with the process it can be catastrophic.”

Wholesale and Retail sector

5


When it goes wrongSupply chain management can be argued to have been a key contributor to the negative impact on BP’s reputation in the Gulf of Mexico. The contractor responsible wasn’t BP, but it was the BP brand, reputation and senior leadership team that paid the price.

Many household names today have suffered the ignominy of reputational damage as well as a large hit on their share prices, as a result of ineffectual supplier management.

Clothing manufacturing has come in for serious scrutiny in recent years, following the exposure of practices in the factories used by low cost manufacturers selling clothes in the UK. Primark’s issues around child labour and low wages for workers in factories in the Far East had the potential to damage their brand and reputation. Supply chain management is playing an increasingly important part in how businesses see their brand equity management.

The Olympic Games London 2012 is not exempt from questionable supply chain management practices. A recent report by the Playfair scheme has identifi ed sweatshop conditions at factories in Guangdong Province in China, contracted to provide mascots and badges for the London 2012 Olympics. A combination of low wages, excessive working hours, child labour and dangerous health and safety conditions, alongside audit fraud, are now under investigation. All serve to impact on the brand and reputation of the Olympic movement.

“The use of substandard labour by (supplier) caused damage to our brand reputation.”

Transport, Storage and Communications sector

Many household names today have suffered the ignominy of reputational damage as well as a large hit on their share prices, as a result of ineffectual supplier management.

Clothing manufacturing has come in for serious scrutiny in recent years, following the exposure of practices in the factories used by low cost manufacturers selling clothes in the UK. Primark’s issues around child labour and low wages for workers in factories in the Far East had the potential to damage their brand and reputation. Supply chain management is playing an increasingly important part in how businesses see their brand equity management.

The Olympic Games London 2012 is not exempt

“Because we are a water company, quality is an issue. We could be sued if something goes wrong and then there is the problem of bad publicity.”

Utilities, Mining and Quarrying sector

5


76

A recurring theme in our research is the vital part played by risk management.

Most businesses have a lot of risks to manage every day – minimising exposure to these is crucial to business survival and success. For many procurement professionals, the risk management ‘game’ has new rules and a playing fi eld that is complex and global. Traditionally the risks of supply management did not have the same dependency on a procurement team to get it right. But that’s changed now – and our fi ndings see the role of procurement teams in risk management and mitigation, as ‘part of the day job’.

40% of businesses said that their most important risk to manage through the procurement process is the “failure of a supplier to deliver in terms of quality, timeliness or cost”. This is consistent for all sizes of organisation and across all the sectors we surveyed, with 75% of respondents putting this in their ‘top three’ risks to manage. There is an obvious and immediate impact on the business if the supply chain fails – in terms of product quality, timing or service delivery.

We found some variation in views on the next two big areas for risk depending on company size. Irrespective of sector, large companies are concerned to protect their brand and reputation from damage caused by ‘weak or high risk links in the chain’. Smaller companies with 250+ employees have concerns closer to home – and are focusing their energies on fi nancial survival.

Nearly half (48%) of companies we talked to are concerned about the fi nancial failure of suppliers’ businesses and put it in the top three risks they have to manage. In addition, 33% list the fi nancial failure of their own business in their risk top three. In the Construction industry, 30% of those surveyed put failure of their own business as the number one risk. With the recent recession and the current economic climate being unforgiving, this concern has become acute. 31% of Construction businesses surveyed with 250+ employees and turnover of less than £25 million, see their own fi nancial failure as the most important risk.

What are CPOs worrying about?

Failure of a supplier to deliver the required service in terms of

quality, timeliness or cost

The fi nancial failure of a supplier (ceases trading)

The risk to the reputation of your business

The fi nancial failure of your business (ceases trading)

The failure of a supplier to meet its Health & Safety obligations

The risk that your business is exposed to litigation

40

75

12

48

13

38

16

33

12

32

5

24

Most important risks to manage (%)

Selected as most important risk Selected in top 3 most important risks


7

Achilles Group Chief Executive, Adrian Chamberlain, comments

“If a signifi cant supplier of a key component or service fails to come up to the mark, a business can be damaged beyond product delivery. There is the potential for brand and reputational damage – and the ensuing impact on share price performance. From an industrial accident with a worker killed, to a subcontractor polluting a local river or using child or illegal immigrant labour in the UK or Jakarta, there are obvious and immediate impacts on reputation and brand.”

This view is backed up with sector commentary, including: “We use subcontractors a lot in the Construction industry – and our supply chain is international. In the last two years it feels as if we’re just one small step away from bankruptcy.”

Construction sector

Amongst the larger businesses with turnover between £250 and £999 million, 23% of organisations put the most important risk faced as managing their brand and reputation. Effective and proactive supply chain management is therefore seen as an investment in brand and reputation.

Failure to deliver service in terms of quality, timeliness or cost

Finance (13)Transport, Storage &Communications (75)Wholesale & Retail (30)Construction (30)Manufacturing (38)Utilities, Mining & Quarrying (14)

Financial failure (business ceases trading)

Risk to reputation of business

Failure of supplier to meet its H&S obligations

Financial failure(supplier ceases trading)

Business exposed to litigation

434240204415

211117301315

141610209

38

0131717915

7111013158

1457040

Most important risks to manage by sector (%)


98

Complex, global supply chains, are synonymous with risk. A typical business will have a range of risk levels associated with suppliers – from safe, low risk providers, to something far less visible or manageable at the far reaches of the chain. High risk suppliers may be overseas and without the same commitment to compliance or quality standards of the UK and Europe. Yet, you need them to deliver the components your products require – and at the best price. That is the risk your business has agreed to take on, your ‘appetite’ for risk.

The graph shows how many high risk suppliers respondents believe they have in the supply chain. There is little variation in the percentage of these high risk suppliers by size of business, although there are differences by sector. Some sectors clearly demonstrate a greater reliance on so‑called ‘risky’ suppliers. The Construction sector shows that 28% of companies asked in the survey, identifi ed 11% or more of their suppliers as high risk.

The global reach of supply chains, distant sourcing of information and pressure to perform in highly competitive marketplaces, makes it a necessity to include high risk suppliers in the supply chain. In the Construction sector, for example, one in ten of large businesses rely on high risk suppliers, defi ned in terms of their ability to deliver to price, time and quality. Notably, 20% of suppliers are considered to be high risk in the Transport, Storage and Communications sector.

Today’s quality and accreditation standards are strong tools for managing risk – and provide a framework for a successful approach. As many companies recognise, however, risk management can be a hefty in‑house cost to the business.

How great a risk is too great a risk?

“The work done by Achilles not only enabled us to increase the quality of our supplier information, but also helped us to reduce costs, risk and improve effectiveness.”

Hector Tajahuerce, Enagas Purchasing Director

All businesses

Utilities, Mining& Quarrying

(13)

Manufacturing(75)

Construction(30)

Wholesale & Retail trade

(30)

Transport, Storage & Communications

(38)

Finance(14)

10011392516

801646238

8011342720

13010363010

10013402313

1305

52245

7014212136

Mean %

22

30

20

20

23

22

18

Medium risk suppliers High risk suppliers

Don’t know 51-99%100% 11-50% 1-10% 0%


9

Using information from Achilles helps to mitigate risk.

“Achilles’ BuildingConfi dence allows us to drive performance improvements with our supply chain in a way we have never been able to do before. We are able to demonstrate compliance to our clients by producing PQQ and audit information that details how we manage and analyse our supply chain.”

Nigel McKay, Head of Procurement and Supply Chain, Lend Lease EMEA

Nearly half of businesses regards up to 10% of suppliers as high risk. 8% believe more than half of their suppliers are high risk.

Achilles Group Chief Executive, Adrian Chamberlain, comments

“Companies are becoming far more vulnerable to supplier failures as they become more globalised and as they seek to offset business complexity by outsourcing increasingly large proportions of their activity to third parties. Problems occur when a company is not on top of its supplier information. If you recognise you’ve got high risk elements in the supply chain, you are in a good position to mitigate the effects. Get new suppliers vetted properly to reduce the chances of non delivery on a contract at an early stage.”

526184820

00815698

316194427

10010174023

706106017

1138

29455

070

213636

14

11

13

17

12

20

16

Medium risk suppliers High risk suppliers


1110

With just 5% of businesses seeing the threat of litigation as the driver to manage risks effectively, what is driving effective compliance in the supply chain? The rationale for risk management appears to be more closely linked to audit evidence and the need to gain sector or industry‑wide quality accreditation status. The research shows that this is consistent across all sectors. Quality standards and audit, rather than business best practice or proactive supply chain management, appear to be the real drivers for risk management.

Compliance is a ‘must have’ in the supply chain. More than 30% of all businesses have to provide evidence of compliance for all their sourcing activities. This evidence is required from across the spectrum of quality, fi nance, health and safety, data security and corporate social responsibility. Recognising the importance of splitting what you have to do simply for compliance, away from what you could achieve in the area of proactive management and continuous improvement in the supply chain, is key.

Many companies choose to offl oad the mundane and time consuming administrative elements of the procurement process to a partner they can trust. Achilles works with many companies in this way – we have experience, understand the processes and can ensure the audit boxes are ticked as part of the service.

Audits are seen as benefi tting the continuous improvement cycle – supporting both the procurement team and the supplier to track and improve performance. Most suppliers are willing to pay for the auditors to come in, conduct their checks against the agreed quality models – and give out the certifi cates.

Those businesses who cared most about their reputation and brand, also asked for the evidence to support compliance, as part of all sourcing events. This demonstrates a clear link between larger businesses and brand building supplier management – versus the narrow focus of audit and compliance as a ‘necessary evil’ and administrative burden.

Keeping the plates spinning. Compliance, a driver or facilitator for risk management?

Quality

Financial

Health & Safety

Environment

Data Security

Insurance

Business Continuity

The UK Bribery Act 2010/US Foreign Corrupt Practices Act

CSR

European Law

None

8874

8360

8365

8063

7351

720

7054

660

5844

490

60

Areas where businesses have to retain evidence of compliance, and there is a requirement for suppliers to undergo audits

Collect evidence Require suppliers toundergo audits

84

72

78

78

70

77

75

% of those collecting evidence who require audits. There was no meaningful variation by sector size.


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Providing evidence of compliance is also linked to the size of the business. Our research fi ndings show that 47% of the largest businesses in terms of turnover (£1 billion +), had to provide evidence of compliance for all of their sourcing events. 33% of businesses reported that their suppliers had to pay for audits, although this was less common amongst the largest organisations and there was little variation by sector. In 35% of cases, the cost was shared between the buyer and the vendor – this was less common amongst companies with smaller turnovers.

Those businesses who selected ‘the risk to the reputation of your business’ as the most important potential procurement risk, had to provide compliance for all their sourcing events. This compares to only 21% of those who considered ‘fi nancial failure’ to be their biggest risk.

Finance 7 7 14 1457

Transport, Storage & Communications 8 13 39 1326

Wholesale & Retail 17 17 37 723

Construction 7 20 23 2327

Manufacturing 11 16 32 1527

Utilities, Mining, Quarrying 23 15 23 830

£1 Billion + 37 47 412

£251 million ‑ £999 million 13 23 36 1117

£26 million ‑ £250 million 10 13 28 1433

Less than £25 million 18 7 34 733

0% 1-50% 51-99% 100% 100%

% of sourcing events where companies have to provide evidence of compliance, by sector

% of sourcing events where companies have to provide evidence of compliance, by size

Compliance and sourcing events

33% of businesses reported that their suppliers had to pay for audits. This was less common amongst the largest organisations and showed little variation by sector.

In 35% of cases the cost of audit was shared between the buyer and the vendor. This was less common among smaller companies.

57% of those who selected ‘the risk to the reputation of your business’ as the most important potential risk, had to provide compliance for all their sourcing events.

This compares to only 21% of those who considered ‘fi nancial failure’ as their biggest risk.

One third (32%) of businesses stated they had to provide evidence of compliance for all sourcing events.


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Pre‑qualifying suppliers is the key to effective risk managementAcross the board, 71% of businesses rated the pre‑qualifying of suppliers as ‘very important’ – although for some businesses it’s more important than others. For larger businesses, with turnovers above £1 billion, 88% rate it as ‘very important’.

The research also examines the levels of risk management that are driven directly by the need for compliance with law or as evidence for an audit. Some risk management is geared to ensuring that the company brand and reputation are protected and not left exposed as a result of the supply chain.

All businesses

All businesses

Finance

Less than £25 million

Transport, Storage & Communication

Wholesale & Retail

£26 million ‑ £250 million

£251 million ‑ £999 million

Construction

More than £1 billion

Manufacturing

Importance of supplier pre-qualifi cation

Of no importance Fairly unimportant Fairly important Very important

Utilities, Mining, Quarrying

Sector

Turnover

0% 50% 100%

24

29

24

23

27

23

38

24

39

25

27

12

71

57

74

70

73

73

62

71

61

69

71

88


13

Sourcing events and pre-qualification

0%

7%

0%

15%

5%7%

67%

33%35% 34%

28%

35%34%

18%

43%

30%

25%

14%

0%

32%

14% 15%

38%

21%

0%

20%

40%

60%

80%

100%

Utilities, Mining, Quarrying* (12)Manufacturing (68) Construction (28) Wholesale and Retail (27)Transport and Communications (37)Finance* (14)

0% Prequalified 1-50% Prequalified 50-99% Prequalified 100% Prequalified

Mean

Base = (186) Source B13

50% of businesses pre-qualify over half their sourcing events prior to issuing the tenderOn average, businesses pre-qualify 58% of sourcing events

There was no meaningful variation in level of pre-qualification in relation to different risk perceptions amongst procurement professionals

47% 63% 64% 48% 67% 49%Pre‑qualify before tenderingHalf of all the businesses we talked to, pre‑qualify more than half of their sourcing events before issuing a tender. On average, this shows that businesses pre‑qualify 58% of individual sourcing events. This is notable in the Transport Storage and Communications, and Manufacturing sectors, where 100% pre‑qualifi cation of suppliers is expected in 38% and 32% of cases, respectively.

Irrespective of sector, it can be argued that pre‑qualifi cation is becoming ‘business as usual’ for the procurement teams we spoke to – as the real benefi ts of pre‑qualifi cation as a risk management tool are recognised. Strategic and forward thinking procurement teams appear to manage suppliers in terms of building long term partnerships. These deep and enduring business relationships help the organisation to focus on a few key suppliers that are trusted for their reliability, quality and risk reduction for the company overall.

These relationships link back to company vision and long term plans ‑ seeing supply chain

management as a proactive business improvement tool, rather than a need to simply pass muster in audit, or the knee‑jerk reaction of ‘get it done at any cost’. A comment by a Manufacturing respondent highlights a death on the premises as a reason not to use a supplier any more. The partnership approach builds a solid mutual understanding that helps to protect the brand and reputation of the company.

The fact that 95% of businesses rate the pre‑qualifi cation of suppliers as important suggests that they place greater importance on managing risk for the business. Pre‑qualifi cation can give you a context and history of a supplier and their previous performance. For example, 43% of those surveyed, know that something has gone wrong with a high risk supplier in the past – so risk management is key. The more you know, the better you can run your business.

0% Pre-qualifi ed1-50% Pre-qualifi ed50-99% Pre-qualifi ed100% Pre-qualifi ed

Utilities, Mining& Quarrying

Manufacturing

Construction

Wholesale & Retail trade

Transport, Storage &

Communications

Finance

Mean %

067340

47

7331832

63

0354314

64

15343015

48

5282538

67

7351421

49

Sourcing events and pre-qualifi cation

50% of businesses pre-qualify over half their sourcing events prior to issuing the tender.

On average, businesses pre-qualify 58% of all sourcing events.


1514

The cost of pre‑qualifi cationFor many procurement teams, recognition of how important it is to pre‑qualify suppliers has to be secondary to the costs associated with this part of the procurement process. As an effective way to manage risk and protect your business, pre‑qualifi cation is widely agreed to be business best practice. However, it is time consuming and expensive for an in‑house team to manage. At Achilles, we support businesses in

the UK and Europe, by taking away the burdens of administration, audit and compliance. Outsourcing this part of the procurement process can be cost effective for many businesses. It can also help to avoid the pitfalls associated with maintaining up to date information and data sets – as well as the age‑old problem of managing a supply chain. By drawing on multiple databases. This is, in itself, a very risky business.

Data quality as a business imperativeChris Hornung, Group Operations Director at Achilles explains: “We have experience of working with 750 of the world’s largest organisations. The general perception of new customers is that their data is of good quality, however once we start the processes of contacting their supply chain we often fi nd 50% of supplier contact information is out of date or incorrect.”

There are costs associated with poor data ‑ one of the most expensive being that poor business decisions are made on a shaky foundation of unsound supplier information. If the data is not fi t for purpose, there might be a requirement to invest in IT projects to build new systems or databases. This too, is expensive and requires an extensive and on‑going requirement for staff training and IT support. Again, the pain can be alleviated by outsourcing to experts. Achilles collects, qualifi es, evaluates and monitors suppliers on behalf of buyers worldwide which streamlines the procurement process considerably.

Procurement teams are busy people. Across all sectors, the median number of sourcing events managed by each member of the team is 25. The fi gure is higher in the Wholesale and Retail sector – with 50 events a year – and lower across Manufacturing and Transport sectors – with 20 in each.

The companies we asked, pre‑qualify on average 58% of these sourcing events. The proportion is lowest in the Wholesale and Retail sector – with on average 48% pre‑qualifi ed. Businesses devoted on average 4.9 days to pre‑qualifi cation activities per sourcing event – although this is higher in the Manufacturing (5.7) and Transport, Storage and Communications (5.5) sectors and lower in Construction (2.7) and Wholesale and Retail (2.4).

Interestingly, businesses with one supplier database devoted 3.1 days on average, whereas those companies running multiple databases devoted 6.9 days – more than twice as much time to pre-qualify a supplier.

“I knew there would be a cost benefi t to the industry in providing this service. We alone saved a massive £500,000 within the fi rst year of joining the scheme – excellent is the only word for it.”Nigel McKay, Head of Procurement and Supply Chain, Lend Lease EMEA


15

ConclusionsUsing the research fi ndings as a guide, we have drawn some conclusions around the importance of pre‑qualifying suppliers in achieving best practice procurement. Irrespective of industry sector or turnover size, businesses with effective and effi cient procurement have teams that are working in specifi c ways to achieve their successful outcomes.

Typically, these procurement teams are strategic and forward thinking in their approaches to managing risk. They see pre‑qualifi cation as a pre‑requisite to managing and mitigating those risks that are inherent in supply chain management. The teams with the best outcomes, tend to undertake a greater number of sourcing events, but devote less time to pre‑qualifi cation activities. This is logical when the amount of ‘up front’ work they have done to pre‑qualify their suppliers is considered.

Their ability to recognise risk in the supply chain, manage it to limit the impact and potential damage to the business, brand and reputation is a key benefi t of pre‑qualifying suppliers – and is clearly demonstrated by the professional procurement teams we support every day at Achilles.

Another indication of successful procurement teams, is their use of a single database to house

their information. The businesses with one supplier database devote fewer days on average, to pre‑qualifi cation activities than businesses with multiple databases. Knowing that the data is accurate and up to date also helps procurement teams to proactively manage their sourcing events with confi dence and professionalism. In turn, this translates into tangible business best practice in procurement.

Pre‑qualifi cation, a pre‑requisite for procurement best practice ‑ confi rmed

management. The teams with the best outcomes,

activities. This is logical when the amount of ‘up

their information. The businesses with one supplier database devote fewer days on average, to

Best Practice Procurement Teams:❏ Use one database❏ See pre-qualifi cation of suppliers as a business imperative

❏ Conduct more sourcing events❏ Spend less time on each sourcing event

✓

✓

✓

✓


Achilles Group Limited30 Park Gate, Milton Park, Abingdon, Oxon, OX14 4SH, UKT: +44 (0)1235 820813 F: +44 (0)1235 821093 E: [email protected] W: www.achilles.com001‑02/2012

Chevron uses Achilles’ services for its supplier pre-qualifi cation. As part of the industry community known as FPAL, there are benefi ts of membership for Chevron, as Iveta Geidane, Contracts Advisor, explained:

“Chevron’s FPAL registration has directly contributed to a reduction of contract risk for the business. FPAL registration and profi ling ensures that an element of screening and pre-qualifi cation is conducted, before a Supplier is considered by Chevron. In addition, the Verify process validates the working practices of Suppliers and is an evidence-based assessment. FPAL Verify saves Chevron both the time and cost associated with supplier management and ensures that the Supplier’s internal systems are effective”.

“Chevron are committed to FPAL Verify and it is embedded into their Contractor HES Management Process (CHESM). Over the years, Chevron’s Business Unit have fully adopted Verify to ensure that their supply chain aligns with Chevrons values and tenets of operation. Chevron have gradually concluded that Verify is the most effectual means of assuring credibility of supplier management systems, potentially leading to superior HSE performance”.Iveta Geidane, Contracts Advisor, Chevron Upstream Europe


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