Regina– Arguably the most impactful announcement at the 2019 SIMSA Oil and Gas Supply Chain Forum in Regina on Oct. 3 was Crescent Point Energy Corp.’s adoption of a new compliance service provider, Avetta.
Most of the company’s vendors are likely already aware of the changeover in recent weeks, but for those who may not be in the loop, it’s a significant change that will impact them.
Over the past decade most oil companies in Saskatchewan have required their vendors to register with a supply chain risk management services companies, generally the duopoly of ISNetworld or Complyworks. Depending on the oil company’s requirements, it could mean submitting everything from safety programs to individuals’ training certifications online.
By landing the Crescent Point work, Avetta becomes the third significant compliance registry company to onboard oilfield service companies in southern Saskatchewan.
Brennan Littlefield and Stephanie Watt of Avetta spoke to Pipeline Newsduring the event on Oct. 3.
Littlefield said they were formerly known as PICS Auditing (Pacific Industrial Contractor Screening). “We rebranded about three years ago. The company was founded to help create safer workplace environments through contractor/suppler prequalification, certification and training. We are a global company doing business in the U.S., Canada, Europe, Middle East, Asia Pacific and Latin America. “Avetta has the largest contractor/supplier network in the space,” he said.
“In February of 2019, Avetta and BROWZ combined to form a market leading organization focused on delivering the best in supply chain risk management services to companies worldwide. The transaction further solidifies Avetta’s position as a world-class organization, innovator and thought leader, expanding the company’s global network to over 90,000 customers in over 100 countries in the fast growing $14 billion global marketplace for supply chain risk management solutions. The combined 90,000 customers/supplier placed us in the Number 1 position from a supplier perspective,” Littlefield said.
He explained it is a cloud-based platform. “We do pre-qualification of contractors and suppliers. We have partnered with over 500 active clients, right now. We have just over 90,000 active suppliers, contractors and vendors in our network.
“We’ve really shifted the whole model to be more supplier-focused. For suppliers, we make it easy to provide the necessary documentation and certifications to qualify and connect with clients. Suppliers have access to online as well as live support in over 18 languages to help them get up and running quickly.
“The Canadian market has become a real growth market for us as we have landed clients in oil, construction materials, telecom and more. The versatility and configurability of our platform make Avetta attractive for any company managing workers, contractors and suppliers,” he said.
As an example, an oil company will pay a fee to have Avetta as their service provider of choice. “All their contractors, suppliers and vendors will pay an annual membership fee based on the risk level. It’s not based on company size, but level of risk. Risk can mean different things to people. From a health and safety perspective, it can mean working at height, enclosed spaces, or with dangerous goods and materials.”
So, what does a supplier/contractor get for your fee, beyond the privilege of applying for work?
“With most companies, signing up or registering seems like a burden or a tax. With Avetta, we have focused on providing value. Qualified contractors can become discovered by our other clients, they get world-class support, and they have access to our recently launched Marketplace where they can get access to discounted products and services they use everyday. The savings they gain help them grow their business. In fact, some suppliers are saving over $10,000 a year on insurance premiums through Marketplace. That’s significant,” he said.
He said 37 per cent of suppliers in the system, within their first year, are connected to a new client.
Avetta is based in Orem, Utah. It is a global company with locations worldwide including an office in Calgary. The company is currently establishing a presence in Eastern Canada in Toronto and Montreal. The company has 381 full-time employees worldwide.
When asked what typical requirements for a vendor would be, Watt said, “Depends on the client. We’re completely configurable for what the client is looking for. That can be company certifications or even individual certifications, or both. It’s what the client wants.”
The Avetta platform is highly configurable—its not a “one size fits all,” he noted. Each client configuration is different which is the beauty of the platform—it can work for any industry that needs to do vetting and prequalification of contractors, suppliers and vendors.
Littlefield said some companies want only high-level information, whereas others want to see the drug and alcohol testing for each of the thousand individuals working for them. Most contractors are invited to join the system, but companies can proactively join the Avetta platform, he said. Initially they will only have a basic set of questions.