Supplier guide

The Purchasing and Supplier Management (PSM) Team is responsible for all spend relating to the operational and capital activities of Essar Oil UK.

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 Essar 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 Essar OIl UK. 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

Essar oil UK’s 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 Essar Oil UK. 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 Essar Oil UK code of conduct.

Terms and conditions

Acceptance of our standard Terms and Conditions and relevant appendices is a prerequisite for doing business with Essar Oil UK.

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 Essar Oil UK 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 R3.

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:

ESSAR Oil (UK) Limited
PO Box 3
Ellesmere Port
CH65 4HB

Self billing

Essar Oil UK supports Evaluated Receipt Settlement via SAP.

Remittance advice

Essar Oil UK 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.