Chevron - Approved Vendor Management

Customer Profile

Chevron is a world leader in the energy market with integrated companies providing both exploration and production as well as manufacturing, products and transmission. Chevron also has interests in chemicals, mining, power operations and technology innovation in alternative energy. Chevron has a strong culture of organizational safety.

Business Situation - The Challenge

Corporations often have a large list of highly competitive vendors and that list is growing and changing all the time. Chevron needed a means to quickly identify vendors with a proven track record for on time delivery of high quality products and materials. The primary goal was to retain the knowledge held by individual procurement project managers, making this knowledge available throughout the company in a central data repository. The system would allow Chevron personnel to make better business decisions and increase the profitability of various business units and projects.

Solution

We created the Approved Vendor Listing Program for Chevron. Working with the clients procurement team, we helped them identify key business goals and define a high level set of requirements. We designed web-based global management application that allows procurement project managers to enter and access specific performance data for its vendors. Each performance criteria data point includes a number ratings based on a sliding scale that represents a weighted percentage in the total score for each vendor. Data points can be modified at any point in time so that the scores are always current. Vendors can only be added by the procurement managers and data point values can be improved through demonstrated improvement in quality and/or performance.

Benefits

• Flexible, template-based system is easy to use with minimal training
• Serves as a knowledge retention tool lessening the dependence on specific knowledge of individuals
• Data access helps project managers prepare budgets and meet timelines
• Open corporate access improves overall efficiency and reduces the direct costs of procurement
• Objective scoring system minimizes claims of favoritism