Supply Chain Management

Sembcorp Marine is committed to manage the environmental, social and economic impacts across its value-supply chain.

From conceptualisation and design to engineering, procurement and construction, including materials management, the life-cycle phases of our products and solutions are well-managed to ensure timely and on-budget deliveries in compliance with customers’ operating requirements, international regulations and high standards of quality, safety and sustainability.

 

Supply Chain Management

Steering the Group’s supply chain management strategy is the Sembcorp Marine Procurement and Outsourcing Resources Committee (SPORC). Led by the Head of Supply Chain, the SPORC plays a key role in creating value from supply chain synergies through economies of scale and enhanced competitiveness.

To mitigate procurement-related risks, Sembcorp Marine actively engages and monitors suppliers to ensure that they comply with stipulated delivery schedules, specification standards as well as ethical codes of conduct. Suppliers who have significant impact on project outcomes, including those providing critical materials, equipment and parts, are identified early and monitored closely throughout the project.

For more details about the supply chain management process, please click here.

 

Responsible Procurement

Sembcorp Marine is committed to responsible procurement and expects its suppliers to uphold ethical standards in their upstream sourcing and manufacturing operations. We do not procure raw materials, parts and products that contain unsustainable substances, such as asbestos which can cause environmental risks and health issues over time.

Sembcorp Marine is also against the use of ‘conflict minerals’, defined as tin, tantalum, tungsten and gold from countries where the mining of these minerals is exploited by armed groups which perpetuate violence and human rights abuses. Sembcorp Marine’s suppliers are required to declare that they and their upstream partners do not use or procure the said substances and materials.

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Supply Chain Due Diligence

Recognising suppliers as important partners in value creation, the Group has in place due diligence measures and internal controls to ensure on-time delivery while meeting standards of quality, safety and reliability. As part of the qualification process for inclusion into Sembcorp Marine’s Approved Vendor List, companies are required to declare and provide supporting documentation that demonstrate compliance with the Group’s standards, and for assessment by a review panel. Sembcorp Marine is also expanding its focus to include sustainability criteria, such as responsible labour management, human rights and environmental practices, in its review process.
Companies in the Approved Vendor List are selected based on their quality and service track record as well as ability to operate responsibly over a long term. Suppliers are subject to Sembcorp Marine’s tender regulations and codes of conduct for fair competition during the bidding process. In the area of manpower supply, Sembcorp Marine’s resident contractors are required to have at least bizSAFE Level 3 certification and externally audited safety risk management systems as an endorsement of their workplace safety and health capabilities.

 

To find out more about the Group’s supply chain management and competitive strengths, please click here

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