News and Media Releases
Upstream Supply Chain IDs Diverse Supplier in the U.S. Rockies
26/05/2009
Shell's procurement organizations are utilizing new strategies and innovative approaches to optimize buyers' time and maximize business results.
I have the deepest appreciation for Shell for its dedication to working with minority businesses.
Shell's Supplier Diversity Program has implemented "focused forums", an approach to connect procurement professionals with minority women business enterprises (MWBE) firms that have proven industry experience and a track record of safe, competitive and innovative performance. These cutting edge forums have been well received at Shell and within the minority business community and are seen as a best practice. A key element contributing to the success of regional forums is the collaboration with local affiliates of the National Minority Supplier Development Council.
Recruiting Diverse Suppliers
Enjoying the winter in Pinedale: (L to R) Kelly Irvine, Division Sales Manager/Pynergy and Darrell Jackson, Managing Member/Pynergy in front of Rig 784.
Since 2004, Shell has worked with the Rocky Mountain Supplier Diversity Council (RMSDC) to seek and attract qualified suppliers for Shell Exploration & Production (E&P) activities in the U.S. Rockies. In late 2007, Shell E&P in the Rockies participated in a focused forum to achieve a more streamlined supplier evaluation process to meet Shell's operational requirements and develop long-term business relationships with diverse suppliers.
Patricia Richards, Manager, Supplier Diversity and Diversity Outreach: "In order to progress toward a world-class supplier diversity program, we have to attract the most qualified capable suppliers that benefit Shell's supply chain. The focus forums in the Rockies and California have been very successful and we are using the same concept in other markets where Shell has a presence, such as New Orleans and Houston."
A Study in Supplier Optimization
In 2008, Pynergy Petroleum Company, a minority owned business based in Colorado, began contract work with Shell after connecting with buyers through a focused forum Pynergy, a distribution company with extensive experience in retail, fuels and lubricants, sought to expand the industrial side of its business.
Through a series of discussions with Shell buyers, Pynergy identified a niche to supply Shell Pinedale operations with a product used in exhaust reduction, urea. Normally, urea is a compound used in agricultural applications but was required for use with Selective Catalyst Reduction systems installed on all drilling rigs for Shell in Pinedale.
"While Pynergy was not yet in the urea business, we thought this was the perfect opportunity for us to leverage our experience in distribution and provide a higher level of service in this emerging niche market. We have been distributing other products in the area for years, why not support the drilling rigs in Pinedale?" said Kelly Irvine, Division Sales Manager for Pynergy.
Pynergy has grown to become a valuable part of the Pinedale operation by providing effective problem solving solutions, attention to detail and a level of individualized service. In fact, Pynergy has taken the initiative to proactively monitor urea levels and make multiple field deliveries in one trip to help reduce transportation costs, minimize down time and reduce emissions. They are also working closely with Shell to improve storage methods for urea in the extreme climate of the basin.
Chad Bown, SEPCO Supply Chain Management, "After considering many proposals, Pynergy was chosen for developing a value-added, turnkey program which was safe, local, and cost effective. Pynergy worked hard to understand and comply with Shell standards while ensuring a seamless product offering for our operations."
"I have the deepest appreciation for Shell for its dedication to working with minority businesses," said Darrell Jackson, Managing Member of Pynergy. "I applaud Shell for doing the additional outreach, hosting the focus forum and for providing us a clear blueprint of the project, so that we could establish the best service possible."