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Shell’s suppliers to reapply for work

Shell’s 70,000 suppliers have to re-register to work for the oil giant as it adopts an Achilles global management platform

Shell is shifting its supplier management onto a global basis Photo: AP

Richard Tyler
By Richard Tyler 7:46PM BST 24 May 2011

Shell’s 70,000 suppliers will have to reapply to work for the oil giant as it shifts the management of its supply chain onto a global footing – thought to be the first such move of its kind.

Suppliers in more than 90 countries will be notified of the move from this July and the transition onto the new platform is expected to complete by the end of next year.

The plan is being driven by Shell’s desire for better “spending intelligence” as well as its need to monitor global compliance with health and safety and bribery legislation, according to Colin Maund, chief executive of Achilles, which is providing the software platform.

Shell said suppliers will become visible to its procurement staff around the world – potentially opening up more work. Suppliers registered on the existing Achilles platform will also be able to access mid stream and down stream contracts for the first time,” he said.

“Suppliers don’t have to do anything yet. When they are contacted by Shell they will have to fill out a short form so we have up to date information,” said Mr Maund.

“The whole process will be more scientific. There’s a single point of information. If they are a good suppliers that will be noticed. If they have benefited from being the only person known, which is highly unlikely in Shell, then that’s not going to be enough anymore. They will have to have the right qualifications for the job.”

Mr Maund added: “For companies in Britain, say those in Aberdeen, it is an opportunity to show what they can do on a global basis without finding out the different processes in every region. If you want to supply Shell in South America you will be able to keep the same entry and expand it.”

Jim Pearson, a Shell general manger, said: “Shell values its relationships with suppliers and with Achilles’ assistance we will maintain a single source of high quality information. This intelligence and insight into our supply base will enable us to continue to form and maintain strong relationships with our suppliers and together, create key competitive advantages for Shell.”

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