Strategic Focus Area

Syncrude's Materials & Services is an organization which cares about each person and values his or her contribution.

We are committed to adding value to improving Syncrude Canada Limited by building relationships with our customers and suppliers. This is accomplished by focusing on the following strategic areas:

1. Putting agreements in place which:

• require the identification and elimination of non value added tasks and interactions from the work in the supply chain.
• require continuous improvement in:
• product and service quality
• accuracy and timeliness of deliveries
• contain price reductions at least on an annual basis or provide for regular reviews for price reductions
• address the rewards or consequences of over or under achievement.
• incorporate "Best Practices"
• are as long term as practical
• emphasize local and Aboriginal business opportunities
• are as simple as possible.

2. Managing materials by:

• accepting materials upon their arrival.
• storing them in the most efficient locations.
• providing distribution where and when needed.
• working with customers to determine the right inventory levels.

A. Initial Contact

B. Main Issues

The following are some of the issues that must be considered when deciding whether your company is ready to do business with Syncrude.

1. Loss Management (Environment, Health and Safety)
   Syncrude places a great deal of emphasis on preventing any damage or injury to people, environment, production and facilities. To ensure this is the case, all companies that do business with Syncrude must have processes in place to demonstrate their knowledge and their ability to achieve excellence in the area of loss management. For companies that will work directly on the plant site, a formal loss management program must be presented and will be evaluated for adequacy prior to the acceptance of bids.
   
   Syncrude has adopted as a minimum for all Contractors, the Construction Owners Association of Alberta (COAA) Alcohol and Drug guidelines and Work Rule, found at http://www.coaa.ab.ca/. Contractors may use their own Alcohol and Drug policies providing all of the COAA standards are included.
   
   Furthermore, Syncrude has also adopted the COAA field level risk assessment. These assessment guidelines are available at www.coaa.ab.ca. Syncrude expects that all companies have a field level risk assessment process as well as a process that specifically addresses protection of New Workers.
   
   All companies' trade related workers are required to have successfully completed the Alberta Construction Safety Association (ACSA) Construction Safety Training System (CSTS) program (modules 1-12) and any renewable training necessary to maintain the CSTS certification in order to work on any Syncrude Site. All companies must ensure that their workers are skilled and knowledgeable to perform the contracted work.
   
2. Local and Aboriginal Business Development
   Syncrude is committed to a strong local economy and the development of local businesses and local Aboriginal businesses. Syncrude will procure a substantial portion of its required goods and services from local businesses and local Aboriginal businesses and encourages its contractors and suppliers to do the same.
   
   Syncrude is committed to the employment of local Aboriginal people. In addition to hiring local Aboriginal people itself, Syncrude encourages its contractors and suppliers to provide employment opportunities to local Aboriginal people.
   
   When Syncrude determines that all other factors in an award decision are equal, preference will be given first to local Aboriginal businesses, then to local businesses, and finally to other contractors and suppliers who will maximize the use of local businesses, local Aboriginal businesses, and the employment of local Aboriginal people.
   
   Syncrude believes that local Aboriginal businesses are only truly successful when they compete in the marketplace with non-aboriginal companies, and would expect that over time they will do so. However, in order to allow local Aboriginal businesses to develop to the point, Syncrude will, for a period of time, designate certain work for local Aboriginal businesses only.
   
   Further to this, Syncrude has appointed a local Aboriginal business co-ordinator. Steve Jani can be reached at 780-790-6357.
   
3. Environment
   Syncrude endeavours to perform as a leader in the resource industry in Alberta with respect to environmental protection. Syncrude expects any company that it does business with to comply fully with all environmental obligations as contained in applicable acts, regulations, and the terms and conditions of Syncrude's various governmental licenses and approvals.
   
4. Quality
   Quality products and services are a priority in maintaining a safe and reliable operation. Syncrude insists on using only proven materials, and requires the same of it contractors and vendors. A copy of your company's quality program must be presented prior to the acceptance of bids. For certain product the ISO 9000 program is required.
   
5. Ethical Business Conduct
   Syncrude will only work with companies that demonstrate ethical business conduct. The Syncrude Ethics Policy is available to all companies doing business with Syncrude. Any questions or comments on this policy should be addressed to the Materials & Services Division 780-790-7579.
   
   Syncrude strives to operate with the highest standards of integrity in all our business relationships. Syncrude expects its employees to deal with contractors and suppliers in a manner which is in conformance with our ethics policy. If you are concerned about an ethics related matter, or feel that you have been treated in an unethical manner by any Syncrude employee, and would like to discuss it directly with the company official concerned with monitoring the effectiveness of our Ethics Policy, you are encouraged to contact Don Thompson, Corporate Secretary at 780-790-6250. Your inquiry will be dealt with in strict confidence.