Supply chain management

Topic Jan. 5, 2021

In this article

Supply chain management

Procurement process and supplier qualification

Overview

An important part of our business success is 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.

Performance and initiatives

During the COVID-19 pandemic, our suppliers made exemplary efforts to ensure essential materials and services were available to keep our business running.  

ExxonMobil’s Sriracha Refinery in Thailand ordered critical fabricated material from Precision Equipments in Chennai, India. With a COVID-19 lockdown imposed in India, Precision took special measures to support operations at the refinery. Precision aligned raw material and small sub-suppliers, ensured continuation of labor at the fabrication shop, and adjusted inbound and outbound transportation to achieve a timely delivery, which enabled the smooth continuation of operations at the refinery.    

Royal Castor Products Limited is an Indian-based Lubes Additive supplier for ExxonMobil facilities in China, Singapore and the United States. With country-wide restrictions in India, Royal Castor was one of a few essential companies that received special permission to continue operations. The company arranged accommodations for its workforce and secured difficult-to-source raw materials – guaranteeing an uninterrupted supply of castor oil for ExxonMobil globally.  

Wuxi Chemical Equipment Co. Ltd. was supplying critical material to the Antwerp Refinery expansion project when COVID-19 escalated in the province. With the city in lockdown and supply chains disrupted, Wuxi obtained special permission to start up operations. The company maintained the local labor force (~60 percent of total employees) while also safely arranging for employees from other provinces to report to the manufacturing site – all while complying with the 14-day quarantine requirements. Additionally, Wuxi maximized use of local raw material suppliers and collaborated with the ExxonMobil project team to qualify an alternate local third-party inspector, ensuring all quality checks continued seamlessly.

COVID-19 created unprecedented global supply chain disruptions. Thanks to our innovative and dedicated suppliers, ExxonMobil was able to maintain project schedules and production of critical products.

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 outreach, business development and training programs. ExxonMobil implemented a supplier-diversity program in the United States more than 45 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 and the National Veteran Owned Business Association 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. We use WEConnect International’s database of women-owned businesses when identifying potential suppliers. We also support WEConnect’s efforts in helping women-owned businesses network, develop capabilities, learn about oil and natural gas industry requirements and identify business opportunities. We support indigenous-owned businesses in Canada and Australia, as well as locally owned businesses in the communities in which we operate around the world through our numerous local content programs.

2019 performance and initiatives

In 2019, we surpassed $3 billion in annual spending with designated diverse suppliers and small businesses globally. We spent $2.7 billion of the $3 billion in the United States with 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. Our supplier diversity program continues to expand internationally, and in 2019, we spent $368 million with women-owned and indigenous-owned businesses around the world.

ExxonMobil spending with U.S. diverse suppliers*

*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.

Nenette Gray, CEO of Lemonade Creative Marketing, LLC.

Our diverse businesses provided tremendous value during the COVID-19 pandemic. As the world experienced disruptions in existing supply chains, diverse and small businesses rose to the challenge to meet urgent needs. The following diverse suppliers provided critical personal protective equipment to ExxonMobil globally: 

  • AGS Solutions, a woman-owned business, supplied disinfectant wipes
  • Bridgeforth Wolf, a diverse, woman-owned business, supplied fabric face masks
  • CFJ Manufacturing, a woman-owned business, supplied more than 10,000 digital thermometers
  • John Benjamin Designs,  a minority-owned business, provided neck gaiters
  • Lemonade Creative Marketing, a diverse, minority and woman-owned business, supplied fabric face masks
  • Trophykart. a woman-owned business in India, provided fabric face masks
  • Zigma, a WEConnect certified woman-owned business in Africa, supplied personal protective equipment

AGS Solutions, Inc., Lemonade Creative Marketing and Zigma are three suppliers who pivoted their business models to fill an urgent need.

AGS is a Houston-based, woman-owned company that has been in business for more than 25 years. It provides environmentally friendly, specialty cleaning chemical products, equipment and systems. By capitalizing on our urgent need, ASG now supplies a new product line of disinfectant wipes to hospitals, government agencies and other corporations.

Lemonade Creative Marketing is a minority, woman-owned business in Baton Rouge, Louisiana, that specializes in innovative branding solutions. Lemonade quickly pivoted to supply nearly 3,400 cloth face masks for ExxonMobil employees as they returned to the Baton Rouge complex. Because of the high quality of the masks, Lemonade sold masks to other ExxonMobil facilities in Baytown and Beaumont, Texas.

“Zigma is grateful to ExxonMobil for the support to woman-owned businesses and indigenous vendors and suppliers. This support to third party service providers demonstrates the company’s passion about local content development in Nigeria.”

Zigma is a WEConnect International certified woman-owned business that provides a range of services such as engineering procurement, construction, installation and maintenance. Zigma added personal protective equipment to its company offering and is now contracted to provide ExxonMobil with personal protective equipment.