Supplier development

Supplier development is a long-term investment of time, people, and resources to improve supply chain reliability, reduce costs, strengthen host country economies, and promote ExxonMobil as a partner of choice. We are dedicated to working with host governments, nongovernmental organizations (NGOs), and other stakeholders to develop local capacity. The focus on supplier development begins in the early stages of the project life cycle and continues to evolve throughout the life of the operation. Our ultimate goal is a stable and globally competitive supply chain.

To consistently develop local suppliers, best practices are institutionalized through our global processes. These practices include local supplier databases, enterprise centers for business development and training, tailored work scopes, supplier forums, and electronic bidding.

Another proactive approach we employ is to break down large bid packages into scopes of work that enable local suppliers to compete for—and win—small projects. For example, in Indonesia, camp management projects were divided into catering, maintenance, and pest control. As local contractors develop their capability and expertise, they begin to compete for bigger packages.

Purchasing from minority- and women-owned businesses
Expanding opportunities for minority- and women-owned business enterprises (MWBEs) and local suppliers provides economic growth to local areas, expands our supplier base, and builds customer and supplier loyalty.

In the United States, our Supplier Diversity Program ensures that qualified MWBE suppliers are included in our procurement sourcing process. In 2010, we made continued progress toward our goal of purchasing materials and services worth $1 billion annually from MWBEs by year-end 2012. This represents 7 percent of our total procurement-managed spending in the United States. In 2010, we spent $812 million, representing a 36-percent increase since 2006.

We are considering opportunities to further expand our program internationally in Australia, Canada, China, and the United Kingdom. In the United Kingdom, we introduced tools to allow procurement staff to more easily identify and work with minority suppliers. Access to diverse suppliers, defined differently by country, poses challenges as supplier diversity programs mature internationally.

In addition to offering supply chain opportunities to MWBEs, ExxonMobil funds scholarships for suppliers to attend specialized programs at business schools in the United States.