Read more to learn about the Supplier Prequalification Work Group, led by Roger Bhalla of ConocoPhillips. Visit the Plan.

1   Proposed Work Group/Study Name

 Project Name: Supplier Pre-Qualification Data Standard & Community

2.    Executive Summary

The project objective is to establish a global standard library for the documenting of supplier prequalification/profile data.  The expectation is that the standard will simplify interactions between operators and our suppliers, reduce bureaucracy, and allow faster responses to data requests such as Requests for Proposals, Quality Surveys, and Audits.  Currently, multiple operators are independently pursuing such standards on a regional or global basis.  In addition, there are independent entities that either collect such data for sale (examples: Dunn and Bradstreet, LexisNexis) or facilitate community sharing of such data (example: Achilles, IS Networld, PICS) that may benefit from and facilitate such a standard.  The primary objective would be to develop a shared library of common data elements, their definitions, and their syntax such that all may use them regardless of how data is actually captured or shared.  In addition, the Workgroup would establish a Community with the scope to manage the provision of data to Oil & Gas Operators from the collective suppliers, using the established data standard and data provider(s).

3.    Description

3.1     Purpose

 The project objective is to establish a standard library for the documenting of supplier prequalification/profile data.  The library would include the common data elements, their definitions, and their syntax such that all may use them regardless of how data is actually captured or shared.  This would allow clarity on the use of such data elements, as well as enable more standard and automated processes for collecting, sharing, validating, and using such data elements in many existing and new processes for each organization involved. In addition, the Workgroup would establish a Community with the scope to manage the provision of data to Oil & Gas Operators from the collective suppliers, using the established data standard and data provider(s). 

3.2     Scope

The project would include the commonly used supplier profile data elements, which can include (but are not limited to) the following examples:

  • Company Bio – Company name, Ownership (Public, Private corporation, Public corporation, Partnership, Sole Proprietorship), Parent Company name, number of employees, web page,

  • Location – physical address (street/city/state/postal code), mailing address (street/city/state/postal code), banking address (street/city/state/postal code)

  • Contacts – CEO/President/MD (name, address, phone, email), Sales Contact (name, address, phone, email), Accounting contact (name, address, phone, email)

  • Financial – Prior year total revenue/turnover,

  • Health/Environmental/Safety – Confirmation of an Environmental Management System (yes/no), TRIR for prior year

  • Corruption – Validation of compliance with UK Anti-bribery Act and/or US Foreign Corrupt Practices Act.

  • Quality – certification type & date, Confirmation of a Quality Management System (yes/no)

Data elements may be global (example: Company name) or regional (example: registration with US Small Business Administration), but both with be part of the global standard.  Data elements will be indexed by a supplier’s company legal entity for ease of search and reporting.

Project will drive:

  • The Data Standard

    • Agreement on the scope of the data categories (example: Bio, Location, Quality, Import/Export, etc.)
    • Agree on the data elements to standardize (example: TRIR, Parent Company name, physical address, banking/billing address, etc.)
    • Agree on the data standard for each element (example: company name up to 80 character alpha-numeric, quality in parts-per-million defective, etc.)
  • The Community to implement the standard

    • Determine if commercial relationships between the Operators and a Data Solution Provider will be direct or representative model.
    • Set a standard on supplier registration for parent and subsidiary organizations.  What subs need to register when the parent is already registered?  Objective is to capture the essential information, while minimizing the data management and supplier fees.  Community to propose the fee structure approach for parent/subsidiary companies
    • Establish the tenure for supplier registration and data refresh frequency.
    • Establish a Risk matrix used to determine how a supplier moves from basic registration to full prequalification so that low risk suppliers are required to provide less information, while higher risk has a more complete data standard.

3.3      Goal

3.3.1     A common definition makes initial responses to buyer questionnaires less of a resource burden, and more clear in how to respond.  It also reduces the need to repeatedly answer common questions from multiple customers or request clarification on responses. 

3.3.2     A common data standard will allow more automated responses to questionnaires as well as more automated validation of questionnaire responses by the recipient.  It may ultimately enable more automated collection methods such as EDI.

3.3.3     The new data standards would evolve over time as the standards are adjusted to meet the changing needs of the Community.  However, there is no expectation of a retirement date of the proposed standards as they would be agnostic to the process and technologies used to gather, maintain, and utilize the data.

3.4    Background

3.4.1     Multiple Operators in the Energy industry currently have or are considering data standards per the ones in scope of this proposal.

3.4.2     Some 3rd parties have proprietary or semi-standardized data in closed communities.  These include: Dunn & Bradstreet, LexisNexis, ISNetworld, PICS and Achilles.

3.5     Proposal

Initial direction leading to this PTP was coordinated amongst the operators named in Section 5, as well as based on conversations with some suppliers (Halliburton, Schlumberger, GE Oil & Gas) on the intent of the solution. Existing standards being used by various participants will be used to develop the first pass proposal of the data standards.  In addition, existing Community models will be leveraged as best practices for the proposed Community.

4           Benefits

4.1      The primary benefits anticipated are:

4.1.1     Labor savings of resources currently managing the data in scope

4.1.2     Responsiveness through faster sharing of data in scope

4.1.3     Improved decision making and buyer/supplier relations through a more common view of the data in scope (i.e. one version of the truth)

4.2      All buyers, sellers, and 3rd party providers have the potential to benefit from using the proposed data standard. Note:  the proposed standard will likely require change from current proprietary or internal standards in use today.

5           Sponsor and Participants

PIDX member/company sponsoring development of these specifications/this project:

Member

Company

E-Mail Address

Roger Bhalla

ConocoPhillips

Roger.bhalla@conocophillips.com

Guy Frankling

Shell

Guy.frankling@shell.com

Chris Welsh

OPS Portal

cwelsh@ofs-portal.com

The following PIDX members/companies are participants in the development of these specifications:

Member

Company

E-Mail Address

Mara Salvey

BP

mara.savely@bp.com

Truong Phong

BP

Truong.Phong@se1.bp.com

Keith Voorheis

Chevron

keithvoorheis@chevron.com

Adrian Hinestroza

ConocoPhillips

Adrian.Hinestroza@conocophillips.com

 

Project Team Chairperson: Roger Bhalla Roger.Bhalla@conocophillips.com

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