Expanding supply chain management
Solvang’s main office in Stavanger hired two new supply chain officers, substantially expanding the company’s capacity to safeguard and optimize purchases throughout the operation. Supply chain manager Tanja Hunshamar Øvrebø continues to head the purchases division.
Solvang has obtained systems and hired new people to ensure compliance with the Transparency Act, throughout the supply chain.
“The Transparency Act has very timely pointed out third party vendors and affiliated companies as important targets of our diligence”, says Tanja Øvrebø Hunshamar, Supply Chain Manager at Solvang. In 2023, she directed a restructuring of the purchases and acquisitions processes in Solvang.
The changes imply a basic recognition of the supply chain as strategically significant for the Company, not mainly of operational value. This aligns well with Solvang’s priority of due diligence as part of Solvang’s corporate governance, to ensure the integrity of our values under the Norwegian Transparency Act.
“We have introduced strategic deliberations on the categories of purchase, we started registering compliance details on suppliers, we started benchmarking against the transparency act, and we obtained software to complement our existing systems”, Mrs. Hunshamar remarks.
RISK MANAGEMENT
The software was developed by Sandnes-based Profitbase and was ready for implementation at year-end. It provides a CFO platform programmed to identify, assess and mitigate financial risks, including compliance issues with the Norwegian Transparency Act. By customizing reports on suppliers with details about geographical location, internal and external sources of information, the platform helps Solvang fulfill our obligation towards due diligence, public information and risk management in general.
“The Profitbase platform conveniently helps us to map our f ield of purchase, arrange and overview our transactions, and to set our goals for 2024”, Mrs. Hunshamar says.
MANDATORY PREQUALIFICATION
In 2023, Solvang’s supply chain department was expanded with new expertise, marking the ambition to extend our control of compliance down the supply chain. A.o. prequalification was made mandatory.
“We carry out a prequalification of all third-party vendors entering into our supplier register”, states Mrs. Hunshamar. She underlines Solvang’s commitment to fact-based, fair and consistent practices of evaluation at all times. As a member of Incentra, a procurement organization, Solvang mitigates any concerns related to suppliers assisting in vetting.
FRAMEWORK OF GOVERNANCE
As a global transporter of petrochemical tonnage, Solvang maintains a working relationship with a diversity of stakeholders in various jurisdictions. Hence, clearly defined routines for performing due diligence assessments, as well as rules for communication with suppliers, as well as reporting issues, are being arranged. In 2024, Solvang will continue to analyze and refine the data from the supply chain, collected under the new regime. Based on concrete findings, Solvang will decide what actions are more appropriate and relevant towards suppliers.
Another next step in Solvang’s supply chain management portfolio is an upcoming plan for supplier audits in 2024, deploying the large knowledge base being assembled on the CFO platform as a guide to follow-up audits. Among these measures, the stakeholder dialogue will stand central. As a major value-driven organization proposing mutual respect, team spirit, and quality as principles to enhance our common good, Solvang stands ready to assist all suppliers who share our objective of continuous improvement.
