About PSM
About Purchasing and Supplier Management (PSM)
The professional PSM team at Stanlow support the purchasing element of manufacturing and maintenance at the refinery.
Our mission statement
The PSM function supports the business objectives of sustainable safety, reliability, profitability and growth by ensuring we buy:
- The right goods and services
- At the right price
- In the right quantity
- At the right time
- At the right quality
Following clear, consistent and auditable processes.
What we buy
Below are some of our typical contracting commodities.
Please note this list is not exhaustive.
Services (Engineering, Turnaround, Indirect & Projects)
- Mechanical & scaffolding. paint & insulation
- Inspection & non-destructive testing
- Civil work
- Facilities management
- Occupational health & medical services
- HR & training services
- Waste management
- Security & fleet
Materials
- Pipes/pumps/fitting/flanges
- Valves (control and relief valves)
- Fittings (bolts, studs, gaskets, etc)
- Maintenance repair and operating equipment
- Instrument & electrical
- Rotating & static equipment
- Personal Protective Equipment (PPE)
- Cables
- Analytical equipment
- Control systems and maintenance (control and safeguarding)
- Specialist on and off-site overhaul and maintenance services (steam turbine alternator sets, electrical motors, actuators etc)
- IT and associated equipment
Chemicals, catalysts & overheads
- Catalyst (including technical and license agreement services)
- Fuel additives
- Industrial gas
- Water and hydrocarbon treatment
Become a supplier
How to become a supplier
ERL Fuels has committed to the use of the Oil & Gas industry supply chain database, known as First Point Assessment (FPAL), as a vendor selection tool designed to improve the performance and efficiency of our supply chain. If you are interested in becoming one of our key suppliers, the FPAL service is provided by Achilles and registration is a mandated requirement for on-site service contractors. We have an exemption process, but this is only valid for a short amount of time and therefore registration is advised.
We utilise the Achilles FPAL system as a contributor to our vendor selection process, and following any contract/ work awards, we use Achilles FPAL performance feedback to monitor our performance and that of our suppliers.
Once registered, we require you to participate in the following:
- Maintain your registration, ensuring that it is up-to-date, accurate and that you are registered for the correct service/product codes
- Have an up-to-date capability assessment on your record (applicable to all key suppliers, particularly those that are required to provide pre-qualification information)
- Undertake relevant and comprehensive Achilles FPAL performance feedback
We would like to emphasise the importance of the above, as this will ensure a continued positive relationship with ERL Fuels and also enable you to market yourself more effectively to over 90 Achilles FPAL registered buyers. For further details on Achilles FPAL, including a list of buyers currently using the system, visit: www.fpal.com.
To begin Achilles FPAL registration, please complete the online registration process.
Supplier guide
The Purchasing and Supplier Management (PSM) Team is responsible for all spend relating to the operational and capital activities of ERL Fuels.
We have direct links into the wider Essar procurement network and endeavour to optimise our spend globally.
Our scope
We manage all third party spend, excluding hydrocarbons and transportation of hydrocarbons.
Our approach
Our objective is to obtain the best value for EET Fuels in terms of safety, quality, service, technology and total cost. We work with our suppliers and business partners to engender an ethos of continuous improvement in all of the above areas.
A focus on quality
We expect our suppliers to demonstrate a commitment to continuous improvement in all aspects of their internal and external value chain, including the creation and adoption of innovative practices and technology. We anticipate being actively involved by our Business Partners at the earliest possible juncture in any opportunity that can contribute added value to both parties.
Our processes and procedures
Visiting site
When visiting Stanlow, all suppliers must advise a member of the PSM team, stating when the visit will occur, who will be present and the purpose of the meeting.
Pre-qualification
All suppliers must be pre-qualified before working with EET Fuels. Any potential suppliers must undergo the relevant pre-qualification procedure to determine if they are suitable and this appraisal will include, but is not restricted to:
- Financial status
- Organisational details including industrial relations and sub-contractor management
- Technical experience and expertise
- Environmental record
- HSSE policy and record
- Quality assurance
- Policies and procedures
Intellectual property and confidentiality
ERL Fuels’ intellectual property must not be shared without its express permission. Suppliers may be required to sign mutual non-disclosure agreements.
Ethics
Honesty, integrity and professionalism are at the core of everything we do at ERL Fuels. We are committed to ensuring that our strategy, business and operations are built around a culture of ethical business practice at all levels. Our Anti-Corruption Policy sits at the heart of this commitment.
Our Anti-Corruption Policy and adherence to all anti-corruption laws are central to our culture of responsible behaviour, which protects us from legal and commercial risk and helps maintain our reputation.
All our staff are required to comply with the ERL Fuels’ code of conduct.
Terms and conditions
Acceptance of our standard Terms and Conditions and relevant appendices is a prerequisite for doing business with ERL Fuels.
Contracts
In addition to the acceptance of our standard terms and conditions and any work related appendices, certain suppliers may be asked to agree to a service level agreement. This will form part of the commercial terms.
Contract management
At ERL Fuels we actively manage contracts throughout their lifetime. This includes periodical technical, quality and commercial reviews, benchmarking and market analysis.
Each contract is assigned a multi-discipline team who will work with our supplier with a view to continually improve its delivery. This ensures that the contract remains current and competitive.
ERP Technology
Our Enterprise Resource Planning (ERP) platform is SAP ECC 6.0.
We support electronic trading and will work with our suppliers to develop the most efficient means of transacting and help both parties reduce processing costs.
Master data
The integrity of our master data is paramount. Supplier names, addresses, contact details and bank details need to be up-to-date. The relevant PSM Team contact must be informed in writing, on headed paper, of any changes to company details. If sent electronically, this must be in PDF format.
Quotations
Official requests for quotations will only be issued by the PSM Team. All quotations must only be sent to PSM. Quotations received via any other route may be disqualified. Suppliers are required to advise their PSM Team contact whenever quotations are requested from any other department.
Online bidding
PSM supports Online Bidding and will employ where relevant.
Purchase orders
Requirements for goods and services are always supported by an official Purchase Order. For mutual legal and operational reasons suppliers must not provide any goods or services unless they have been provided with an official Purchase Order. Non-compliance may result in disqualification from the PSM vendor list.
Payment terms
Our standard payment terms are 30 days from the receipt of a correctly presented, uncontested invoice.
Receipt of goods and services
Both goods and services are receipted through our Enterprise Resource Planning (ERP) system. This facilitates invoice payment. For goods, suppliers will ensure that:
- Documentation accompanies the delivery of goods and the official Purchase Order number is stated clearly
- Item numbers are as stated on the official Purchase Orders
- Material numbers when included in the official Purchase Order are included in the delivery documentation
- Material and test certificates accompany the material
- Material Safety Data Sheets (MSDS) are provided where required
- Packaging is in line with the Purchase Order
For services, suppliers will ensure that:
- No work is carried out and payment applied for without being in receipt of a valid Purchase Order
- The work completed fulfils all obligations stated in the pre-agreed scope of work and meets specification
- Where there is a valuation application process, it has been adhered to
- All appropriate justification and back up documentation is made available and supplied where required to allow verification of the application
- Where applications are subject to audit, then audit results have been agreed and incorporated into the final application
- Any variations to the scope of work or specification have been agreed and valued in accordance with conditions of contract
- Interim applications are allowable under the contract and the value agreed
Invoicing and payment
Invoices should be sent to our Accounts Payable team. Please see contact form.
Invoices must only reference one Purchase Order and quote our official Purchase Order item numbers. Failure to quote these on the invoice will cause the payment terms to be delayed.
Invoices must be complete and correct. This means that they:
- Are legible and not handwritten
- Quote the correct Purchase Order number
- Quote the correct invoice address
- Quote the agreed price and quantity
- Meet legislated VAT requirements
- Are arithmetically correct
- State bank details
The address to reference on invoices is:
ERL Fuels – EASTHAM Oil (UK) Limited
North Rd, Birkenhead, Ellesmere Port CH65 1AJ, United Kingdom
Self billing
ERL Fuels supports Evaluated Receipt Settlement via SAP.
Remittance advice
EET Fuels produces remittance advices providing details of invoices passed for payment. Remittances are sent to suppliers via e-mail.
Contacting the PSM team
For further information please contact us using the online form.
Purchasing policy and ethical trading
Ethics
Supplier Conflicts of Interest
All Suppliers have a responsibility to inform ERL Fuels of any relationships, interests or agreements that could have an influence on their relationship with ERL Fuels.
Employee Conflicts of Interest
Any employee who has a financial or other outside business relationship that might involve a conflict of interest will declare this to his/her supervisor. The Head of Purchasing and Supplier Management (PSM) and the Site Leadership Team will be informed and the details held on record in the register of Conflicts of Interest.
Gifts, Entertainment and Sponsored Travel
The Eastham Group has a ‘Zero’ tolerance policy towards bribery and corruption and all employees are required to adhere to high standards of professional and ethical conduct. Compliance with the Eastham Anti-Corruption policy which includes the Gifts, Entertainment and Sponsored Travel Policy (GEST) is mandatory.
