Our supply chain
Our goods and services are primarily procured within North America where over 99 percent of our operations budget was spent in 2016. While we procure goods and services from across the continent, Cenovus remains committed to finding opportunities to work with and purchase from local Aboriginal businesses.
Improving the way we do business with our supply chain
Over the last several years, we have undertaken an effort to improve and standardize our supply chain processes to allow us to more effectively manage our operations spend from a financial, health and safety, performance, ethical and risk perspective. We reduced total operating and capital expenditures in response to recent economic conditions and as a result of improvements to supply chain processes. Consequently, our total number of suppliers and supply chain expenditures have decreased over the 2013-2016 time period.
We have a formalized process in place to identify risks within our supply chain. As part of this, we have a Supply Chain Management Risk Matrix, which is reviewed and updated bi-annually by leaders within the Supply Chain Management team. The matrix helps us evaluate our risks in a variety of areas, including risks pertaining to sustainability (i.e. local community supply and regulatory and safety risks).
We also mitigate risk via a mandatory supplier approval process to help control the number of suppliers we use. In addition, we have a qualification process in place for operations suppliers. These processes help ensure that we continue to work with qualified suppliers who best meet our needs while only adding new suppliers when there is demonstrated value.
Ensuring our contractors are committed to safety
It’s critical that our contractors and service providers are as committed to safety as our employees. That’s why we developed a health and safety intelligence system that allows us to store contractor safety information and track indicators. Our field-based health and safety advisors perform a variety of validation activities to assess the safety performance of our contractors, and the data from these activities is stored within the intelligence tool. The tool emphasizes how the contractor has implemented their safety programs, and also summarizes a contractor’s health and safety performance over a specific timeframe.
We also use ISNetworld as a tool to evaluate the health and safety programs and performance of our suppliers who provide onsite services. ISNetworld is a global resource for connecting corporations with safe, reliable contractors in capital-intensive industries. Cenovus utilizes ISNetworld for both prequalification and monitoring of suppliers’ performance on various sites while directly engaged with Cenovus.
Learn more about contractor safety »
We recognize good safety performance of our contractors through the Health and Safety Stewardship Awards.
Learn more about the program »
Incorporating Aboriginal businesses into our supply chain
Cenovus wants to be the kind of company where Aboriginal people want to build their careers. That’s why we support programs where we can work with Aboriginal communities on education and training that may help them find employment with Cenovus and elsewhere. For example, our Employment Bridging Internship Program gives us an opportunity to work closely with Aboriginal communities and organizations near our operating areas in northern Alberta to identify internship candidates who are interested in working towards a career in the oil and gas industry. Learn more about the program.
Cenovus is also committed to using local Aboriginal businesses for our projects wherever possible. From 2009 to early 2017, we surpassed $2 billion in cumulative spend doing business with local and Aboriginal companies in our operating areas. This is a reflection of our efforts to engage Aboriginal suppliers as well as the growing number of qualified businesses.
Learn more about our commitment to working with Aboriginal businesses »