Supply chain management

Topic Dec. 20, 2019

In this article

Supply chain management

Procurement process and supplier qualification

Overview

Our business success reflects how well we manage those who work on our behalf. We engage with suppliers that comply with local laws, respect human rights and create opportunities for historically underrepresented groups. Our company-wide procurement approach applies a rigorous set of standards and accountability. Learn more about our supplier expectations.

We train our procurement staff to conduct prequalification assessments, which help determine a supplier’s capability to provide the required materials or services. We examine a supplier’s operational, technical and financial performance and conduct mandatory anti-corruption due diligence for suppliers in relevant countries. During due diligence, we identify higher-risk parties, gather additional information and consult with our legal department if further action is needed. Learn more about how ExxonMobil respects human rights in the supply chain.

ExxonMobil audits a select number of suppliers each year for contract compliance. We regularly audit pricing, safety, drug and alcohol policy compliance, invoicing and travel expenses. Contractors not meeting our expectations may be subject to supplemental training and contractual remedies, including termination.

2018 performance and initiatives

In 2018, ExxonMobil made payments to more than 100,000 suppliers of goods and services worldwide. We work with suppliers to improve efficiencies in the supply chain. One example is our use of unmanned aircraft systems, or drones, in the United States. In 2018, we awarded contracts to several suppliers. One supplier in particular, Trumbull Unmanned, LLC, is a certified women-owned, veteran-owned and minority-owned business based in Houston, Texas. We use drones in confined space inspections, inspection of assets at heights and emergency response, bringing significant value in both the upstream and downstream areas of our business. These services help with personnel safety while also generating cost savings by eliminating the need for materials such as scaffolding. Drones also improve environmental performance by reducing carbon footprint and using fewer resources, and increase efficiency through enhanced imagery.

ExxonMobil works with suppliers to improve efficiencies in the supply chain. One example is our use of unmanned aircraft systems, or drones, in the United States.

Promoting supplier diversity

Overview

Working with diverse suppliers creates new perspectives, ideas and practices that help grow our business. We cultivate mutually beneficial relationships with a diverse supplier base and contribute to their growth via supplier forums and local enterprise centers for business development and training. ExxonMobil implemented a supplier-diversity program in the United States more than 40 years ago.

We invite U.S. businesses owned by traditionally underrepresented groups to express interest in becoming an ExxonMobil supplier through our U.S. supplier diversity database. We also work with organizations such as the National Minority Supplier Development Council, the Women’s Business Enterprise National Council and the National Lesbian, Gay, Bisexual and Transgender Chamber of Commerce to help identify and develop relationships with certified diverse suppliers in the United States.

ExxonMobil aims to increase the number of women-owned businesses in our global supply chain. We work with WEConnect International, an organization that identifies, educates, registers and certifies businesses outside the United States that are at least 51 percent owned, managed and controlled by one or more women. ExxonMobil uses WEConnect’s international database of women-owned businesses when identifying potential suppliers. ExxonMobil supports WEConnect efforts in helping women-owned businesses network, develop capabilities, learn about oil and gas industry requirements and identify business opportunities.

ExxonMobil hosted a 2018 Supplier Development Forum to share information on the Liza Phase 1 Project in Guyana and future procurement opportunities.

2018 performance and initiatives

Since 2011, we have spent more than $1 billion annually with diverse suppliers, including minority-owned businesses; women-owned businesses; small businesses; lesbian-, gay-, bisexual- and transgender-owned businesses; veteran-owned businesses; service-disabled veteran-owned businesses; and businesses owned by people with disabilities. In 2018, we achieved a major milestone and surpassed $2 billion in annual spending with designated diverse suppliers and small businesses in the United States. Our supplier diversity program continues to expand internationally, and in 2018, we spent $278 million with women-owned and indigenous-owned businesses.

ExxonMobil spending with U.S. diverse suppliers*

Billions of dollars

In 2018, we spent a total of more than $2.2 billion with diverse suppliers and small businesses in the United States, an increase of more than 15 percent from 2017.

*Includes direct ExxonMobil spending on Tier 1 suppliers and a select group of Tier 2 suppliers. Total spending includes suppliers classified as minority-owned businesses; women-owned businesses; small businesses; lesbian-, gay-, bisexual- and transgender-owned businesses; veteran-owned businesses; service-disabled veteran-owned businesses; and businesses owned by people with disabilities.

In 2018, ExxonMobil was inducted into the Women’s Business Enterprise National Council’s Hall of Fame as one of nine inaugural members. The honor recognizes ExxonMobil for its leadership and commitment to the inclusion of women-owned businesses in its supply chain.
The Women’s Business Enterprise National Council inducted ExxonMobil into its Top Corporation Hall of Fame in recognition of our supplier diversity program.

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Around the world, ExxonMobil aims to be a preferred business partner, neighbor, employer and supplier. ExxonMobil maintains a corporate-wide commitment to safeguarding the health and security of our employees and the public, responsibly managing our social impacts and upholding respect for human rights in our operations.

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