Supplier Development and Keys To Supply Chain Success

Transcription

1 Supplier Development and Keys To Supply Chain Success Brian Hall Shell Kathy Homeyer UPS Robin Pulford American Airlines December 9, 2014 Copyright of Shell Global Solutions US Inc. March February Dec 2014

2 DEFINITIONS AND CAUTIONARY NOTE The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this announcement "Shell", "Shell Group" and "Royal Dutch Shell" are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words "we", "us" and "our" are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. "Subsidiaries", "Shell subsidiaries" and "Shell companies" as used in this announcement refer to companies in which Shell either directly or indirectly has control, by having either a majority of the voting rights or the right to exercise a controlling influence. The companies in which Shell has significant influence but not control are referred to as "associated companies" or "associates" and companies in which Shell has joint control are referred to as "jointly controlled entities". In this announcement, associates and jointly controlled entities are also referred to as "equity-accounted investments". The term "Shell interest" is used for convenience to indicate the direct and/or indirect (for example, through our 23 per cent. shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest. This announcement contains forward looking statements concerning the financial condition, results of operations and businesses of Shell and the Shell Group. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Shell and the Shell Group to market risks and statements expressing management s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward looking statements are identified by their use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "goals", "intend", "may", "objectives", "outlook", "plan", "probably", "project", "risks", "seek", "should", "target", "will" and similar terms and phrases. There are a number of factors that could affect the future operations of Shell and the Shell Group and could cause those results to differ materially from those expressed in the forward looking statements included in this announcement, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell's products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward looking statements contained in this announcement are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward looking statements. Additional factors that may affect future results are contained in Shell's 20-F for the year ended 31 December 2013 (available at and ). These factors also should be considered by the reader. Each forward looking statement speaks only as of the date of this announcement, July 1, Neither Shell nor any of its subsidiaries nor the Shell Group undertake any obligation to publicly update or revise any forward looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward looking statements contained in this announcement. Shell may have used certain terms, such as resources, in this announcement that the SEC strictly prohibits Shell from including in its filings with the SEC. Copyright U.S. of Shell Copyright investors Global of Solutions are Shell urged Global International to Solutions consider B.V. US closely Inc. the disclosure in Shell's Form 20-F, File No , available on the SEC website February 2013 You can also 2 obtain these forms from the SEC by calling SEC-0330.

3 SHELL S ROLE To be the world s most competitive and innovative energy company Active in 70+ Companies, 90,000 full-time employees Our fuel retail network has around 43,000 service stations In a year, we sell 145 billion litres of fuel to our customers Royal Dutch Shell plc; listed on stock exchanges of Amsterdam, London and New York Our priorities include: 1. Local Content Success 2. Natural Gas 3. Biofuels 4. Carbon Capture and Storage 5. Energy Efficiency Copyright of Shell Global Solutions US Inc. February

4 THE OIL SUPPLY CHAIN MIDSTREA M The midstream sector involves the transportation, storage and wholesale marketing of crude or refined petroleum and natural gas products. UPSTREAM The upstream sector includes the search for potential underground or underwater crude oil and natural gas fields, drilling of exploratory wells, and subsequently drilling and operating the wells that recover and bring the crude oil and/or raw natural gas to the surface. DOWNSTREAM The downstream sector commonly refers to the refining of petroleum crude oil and the processing and purifying of raw natural gas, as well as the production, marketing and distribution of products derived from crude oil and natural gas. Copyright of Shell Global Solutions US Inc. February /9/2014 Page 4

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6 Shell Procurement: What s Hot / What s Not* What s Hot Civil Construction What s Not Promotional Items Industrial Roofing Environmental Services Lubricants Toll Blending Bulk & Specialty Chemicals Process Piping Fabrication Advertising & Media Services Marine Engineering Engineering Services Offshore Facility Services Office Supplies Oil & Gas Pipeline Construction IT Services* (2 nd Tier) Electrical & Instrumentation Contract Labor Services *What s Hot / What s Not effective as of November 30, 2014 Copyright of Shell Global Solutions US Inc. February /9/2014 Page 11

7 SHELL SUPPLIER DIVERSITY WHAT WE DO Building the Supplier Pipeline IDENTIFYING CONNECTING DEVELOPING Gather Business needs, Set Sup. Div. Targets and Report Spend Supplier Inquiry Management Monitor performance of Events and Expos Current Suppliers Identify Suppliers for RFP needs Scholarships Coach and Support Supplier Education Workshops Supplier Certification Internal /External Communication, Success Stories and Recognition SHELL SUPPLIERS Support Shell Business Needs Collaboration and Best Practices Support for Success Partner of Ch SUPPLIER DIVERSITY NGO PARTNERSHIPS 7 7

8 Current Industry Issues and Trends Large global contracts replacing regional contracts (Enterprise Framework Agreements) 2 nd Tier becoming critical Results in large capacity suppliers Suppliers with global experience or willingness to develop international/global reach will get more opportunities Supplier Diversity as US national Local Content More accountability to be placed on Prime Contractors to help mature/grow the supply chain More diverse supplier opportunities to become available with Primes Capacity Building Programs on the rise Objective is to support SMWBE s in growing to scale Best candidates have some proven skills in critical supply areas that have growing needs Looking for crossover, relatable and transferable capabilities Supply chains are shrinking, suppliers must: Meet strict safety demands Work to increase their capacity Focus on their UNIQUE value proposition Innovate/Think outside the box Show value (costs savings, process improvements, etc.) Prepare to weather industry volatility Copyright of Shell Global Solutions US Inc. February /9/2014 Page 10

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10 DIVERSITY PROCUREMENT TEAM Debra Stewart, Dir Supplier Diversity, Diversity Outreach & Workforce Development Initiative Donovan Casanave, Mgr Supplier Diversity & Diversity Outreach Brian Hall, Mgr Supplier Diversity & Outreach/Small Business Liaison Officer Shebra Jones Sutherland, Sr. Coordinator, Supplier Diversity, Diversity Outreach Debra McCray SDA - Sr. Procurement Analyst, Global Functions Sourcing Debra.McCray@Shell.com Suzane Williams SDA - Upstream, Procurement Manager/Supplier Diversity, Downstream Suzane.Williams@Shell.com Copyright of Shell Global Solutions US Inc. February

11 CERTIFYING AGENCIES (National, Regional and Local) National Minority Supplier Development Council Regional Development Councils Women s Business Enterprise National Council Go to Certification and select Regional Partner Organizations US Small Business Administration Department of General Services Western Region/PA NaVOBA Other Shell partnerships include Chambers and Economic Development organizations Select suppliers will be invited to provide their Value Proposition via SHELL s supplier diversity portal. 11