SUPPLY SOURCES

The overall strategy for HPF and its team of suppliers and sub-contractors (many of which are linked to HPF by equity) is to operate as one seamless organisation.

As a company we are fully aware that the ultimate success of our organisation depends on our ability to integrate the company's network of suppliers and contractors in a mutually beneficial way. During this partnership, we maintain full responsibility for performance throughout the supply chain.

We recognise that effective management and development of supply sources (suppliers and contractors) is a major contributor not only to the company’s performance and to the effective management of the supply chain, but also particularly important to any total cost reduction programs that may be instigated.

The foremost criteria for HPF’s selection of major supply sources are:

• Experience in the energy sector
• Norsok M650 Approval (critical grade alloys)
• Client Approved Vendor/Manufacturer listing (AVL or AML)
• The relative position of power that they have in the supply chain
• Their proven high performance within the HPF group and Alliance (Managed Supply Chain)

A major part of the work could be ordered on other group divisions as well as Mills outside the group. We have collaborated on many similar projects and established proven procedures for communication and control.

Prior to formal commitment of sub orders, HPF holds Kick-off meetings with its major sub vendors to ensure complete understanding of the full project requirements and to address the following critical areas:

• Raw Material Sourcing Technical Conditions of Supply Documentation Requirements
• Delivery Milestones/Production Schedules and Expediting Protocols
• Reporting & Inspection Formats

A suite of procedures that have been established and proven over numerous long and successful partnerships now provide the basis of our interface strategy.

Operating an open book policy on Specification reviews, Quality, Communication and especially on required Delivery Milestones has lead to excellent working relationships with our partners.

Our field expediters monitor progress by regular visits to ensure production milestones are met. In addition we are able to call upon the services of in-house resources of both expediting and inspection personnel.

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  SUPPLY CHAIN MANAGEMENT

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  TOTAL SCM STRATEGY

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  OVERALL SCM STRATEGY              

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