MBN USA

February 06, 2023

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Energy summit connects diverse suppliers with buying entities

During a recent Energy Summit in Midland, Texas, diverse suppliers were connected with corporations in the oil, gas and energy sectors. It featured networking, moderated panel discussions, a luncheon and exhibition highlighting corporate sponsors.

Two moderated panel discussions addressed how diverse suppliers can best prepare for the future and on Midland, Texas and supply-chain disruption. These are topics corporations are requiring supplier capability in or seeing as trends in how suppliers differentiate themselves.

The exhibition allowed diverse suppliers to meet with buying entities CenterPoint Energy, Chevron, ConocoPhillips, Oncor and Vistra. Additionally, subcontractors of these entities were present to discuss buying opportunities.

Here, we share insights from two of supply-chain disruption panelists:

Mary Gano, senior manager of supply chain diversity at Vistra Corp.

Q: What does it take to be a supplier to big companies such as yours, and how can smaller companies compete effectively against larger competitors?

A: To provide services/products, a supplier needs to be cost competitive, provide quality service/products and understand the needs of our business.

Vistra also has insurance requirements, based on the work that will be done, that the supplier must meet. It’s about relationship-building. People work with people they know.

A contract may not be given after one meeting or within a short time of knowing the supplier. Sometimes, it may take years for the right opportunity to present itself. In some instances, a smaller supplier may come in through our multi-tier program, where they will serve as a tier II supplier under one of our primes. Those primes report quarterly on their spend with diverse owned suppliers.

Q: How would you describe the post-pandemic “new normal,” specifically related to supply chain-management?

A: We have seen a shift in project timelines due to the delay in getting items. Our teams are working very closely with suppliers to understand potential delays and the impact they have on our projects, and we’ve seen the need to work with additional suppliers in some categories that are critical to our business.

We’ve also seen price increases from some of our suppliers due to increases on materials and labor. By having those close relationships with the suppliers, our teams continue to work through any issues or increases that present themselves.

Q: Like many industries, the energy sector is undergoing continuous changes due to technology and an increased emphasis on sustainability and the environment. For example, we hear calls for a lower carbon footprint, more electric vehicles, and ESG (environmental, social and governance) reporting. How is your company ensuring that diverse suppliers continue to participate and grow throughout the supply chain, and what opportunities do you see in the environmental arena across the energy industry? 

A: In the fall of 2020, supply chain sustainability was added to the supply chain diversity team. At that time, we wanted to take a pulse on what our suppliers were doing in the ESG space, so we developed a survey and sent it to a small group of suppliers.

In April 2022, Vistra hired a senior manager of supply chain sustainability. This individual now serves on the Sustainable Supply Chain Alliance (formerly EUISSCA), which is made up of over 20 utility companies.

The SSCA utilizes a survey tool where their suppliers can respond once, about their focus on environmental, and the information be shared with all.

We sent the survey to some of our diverse suppliers as well. The goal of this survey is to determine where a supplier is in their ESG journey and to work with them to improve any areas that they may be lacking.

From a growth standpoint, we also have a Growth & Capacity Building program that I manage. We have selected seven of our diverse suppliers to participate in this program to grow their business across Vistra, as well as conduct introductions to supplier diversity professionals in other industries or specific companies. 

To learn more about Vistra corp., visit vistracorp.com.

Coler Snelleman, director of strategic sourcing and procurement, Oncor Electric Delivery Co. LLC

Q: What does it take to be a supplier to big companies such as yours, and how can smaller companies compete effectively against larger competitors?

A:  A common misconception is that big companies have the advantages. The fact is, however, that smaller companies are more agile, hungry and have faster decision speed. Moreover, small companies offer increased access to all leadership levels within the organization, oftentimes, including the entrepreneur who is most vested in the relationship.

Q: What are some success factors for small companies to consider?

A: Be clear in the value proposition you offer. What are the things that your company does better than everyone else?

Lead with expertise. Don’t assume your customers know — you are the expert. Share your vision, market insights and opportunities to best serve your customer’s needs.

• Deliver on your commitments.

• Be agile and embrace change. After all, it’s likely change is the reason for the opportunity.

Q: How would you describe the post-pandemic “new normal,” specifically related to supply chain-management? What suggestions do you have for suppliers with products or services that are needed to respond to increased demand?

A: I will offer a slightly different view on the ‘new normal.’ It should not be considered the new baseline; instead, the ‘new normal’ is merely the change journey that we are all on. Its fluid and dynamic, and the new normal today may not be the new normal next year. For instance, one year ago, the ‘new normal’ included strict return-to-work mandates along with masks on airplanes. Today, however, yesterday’s ‘new normal’ no longer applies.

What does this mean and how should we think about the new normal? I will offer a few takeaways:

• Agility and flexibility. The speed of change is faster than ever before.  Decisions need to be quick and efficient.

• Risk management. Contingency plans need to be current and thorough.

• Relationships matter. Success is a function of working with others, strong communication and a commitment to working through challenges and unknowns.

Q: Like many industries, the energy sector is undergoing continuous changes due to technology and an increased emphasis on sustainability and the environment. For example, we hear calls for a lower carbon footprint, more electric vehicles and ESG (environmental, social and governance) reporting. How is your company ensuring that diverse suppliers continue to participate and grow throughout the supply chain, and what opportunities do you see in the environmental arena across the energy industry?

A: I will address the question in two ways:

Long before the term ‘ESG,’ Oncor has maintained — and continues to maintain — a commitment to diverse suppliers. As an electric utility provider, we know our customer base is diverse. Therefore, our sourcing practices and supplier base needs to be diverse. We have always believed this, and our results demonstrate our commitment.

Now, with respect to ESG directly, let’s talk specifically about electrification and the role that an electric utility can play in supporting this sector trend. Clearly, we can make a significant impact in how customers transition to alternative energy, and for all the reasons already discussed, diverse suppliers will be a key enabler in how Oncor delivers our goals. 

To learn more about Oncor Electric Delivery Co. LLC, visit oncor.com.

To view or download full article, please click here to view in the most recent MBN Texas digital magazine.