Contractor and supplier management: mitigating risk by better decision making
D. Yemenu A and R. Cerenzio AISNetworld.
The APPEA Journal 52(2) 642-642 https://doi.org/10.1071/AJ11056
Published: 2012
Abstract
Global industry trends show increased outsourcing of non-core business activities (i.e. construction, maintenance, engineering, etc.) to third-party contractors. Data from several industries show that contractors face 1.5–3 times higher incident rates than in-house employees. This extended abstract covers leading-edge approaches for managing contractor risk, presently implemented by organisations in the oil and gas, mining, and manufacturing industries. Using a database of more than 35,000 contracting companies and 220 owner/operator companies, this extended abstract accumulates more than six years of extensive health and safety data to show trends associated with health and safety management and performance improvement. Using statistical analysis methods, actionable leading indicators and insightful trends are discussed. Best practices of contractor management and decision-making tools based on a comprehensive management-system approach to contractor-risk management are also examined. Discussed is a practical model to address the following key elements:
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Gathering, reviewing, and verifying contractor information as part of the due-diligence process.
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Analysing leading and lagging performance indicators.
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Driving safety through feedback, benchmarking, and continual improvement.
Dag Yemenu presently serves as the director of ISN’s global review and verification services group, which consists of experts in health, safety, environmental, procurement, and data analysis fields. ISN is a leader and a rapidly growing organisation that provides management services of contractor and supplier information to thousands of organisations across the globe. Before joining ISN, Dag had engineering careers at Dynegy Inc., a power generation and distribution company, as well as at organisations in the aviation industry. Dag holds a BEng (mechanical), an MSc (industrial engineering), and an MBA. Dag travels extensively, supporting ISN’s international operations in the US, Canada, Europe, Australia, and the Middle East. He lives in London with his wife and young daughter. |
Richard Cerenzio oversees the Review and Verification Services division of ISNetworld in Dallas, Texas. He has more than 24 years of global senior management experience in EH&S, HR, and training within the North American/Australian petrochemical industry, North American facilities and road maintenance industries, and South American copper mining industry. He presently serves on various committees including the National Safety Council’s (NSC) Defensive Driving Courses, International Advisory Committee, the US Government’s National Occupational Research Agenda (NORA) Oil and Gas Council, and the National Center for Construction Education and Research (NCCER) Workforce Development Committee. Member: American Society of Safety Engineers (ASSE). |
