Enabling a Sustainable and Competitive Supply Chain is the Key

Sarah Hill is accountable for the safe, sustainable, and competitive supply chain and the integration of all procurement activities for the Gulf of Mexico/Canada, Trinidad, and global refining and pipelines in the Americas and Europe. Sarah's journey with bp began as a graduate in the North Sea. Over the last 20 years, she has had the opportunity to work across the bp group. She strongly believes in the power of collaboration, seeing bp and the supplier community as better together. Sarah firmly believes that procurement plays a pivotal role in bp's ambition to re-imagine energy for people and the planet and help the world reach net zero. She is delighted to be a member of the board of SRMSDC.

Sarah holds an MBA from Arizona State University and a bachelor's degree in business administrative studies from Robert Gordon's University. She is a certified Professional Member of the Chartered Institute of Purchasing.

Outside of work, Sarah enjoys spending time with her husband and three children and pursuing her ambition to climb all the munros in Scotland.

1. Can you provide an overview of your role as Vice President, Procurement at bp and the responsibilities that come with it?

In my role as Vice President of Procurement at bp, our department plays a crucial role in enabling bp's strategy. We manage around $30 billion of third-party spend, work with 36,000 suppliers worldwide, and oversee over $1.3 billion of inventory across 100+ warehouses. But what's truly exciting is what we're working to achieve through procurement at bp. We're enabling bp's purpose, which is reimagining energy for people and our planet, through a safe, sustainable, and competitive supply chain.

"In our procurement roles, we work closely and collaborate with our suppliers to develop a more sustainable supply chain, working together to build improvement plans to support our business and ultimately our customers."

I've been in the supply chain field for 25 years, and this is the most exciting time to work in procurement. We're helping bp pivot from an international oil company to an integrated energy company, focusing on delivering solutions for customers. In my role, I'm accountable for the integration of all procurement activities for the Gulf of Mexico, Trinidad, and our global refineries and pipelines in the Americas and Europe. We aim to bring automation, standardization, and sustainability into the way we do business with our supply chain. Sustainability is a key focus, aligning with bp's broader sustainability efforts.

2. What are the key objectives and goals you set for the Procurement department at bp?

Our primary goal is to enable bp's purpose through a safe, sustainable, and competitive supply chain. I take pride in helping address one of the world's most significant challenges—bringing secure, affordable, and low-carbon energy to the market. To succeed in the energy transition, we need to build entirely new industries and supply chains. That's where procurement comes in.

Our key objectives include building entirely new supply chains, digitizing our processes, creating bold category strategies, developing key supplier partnerships, and building our procurement talent. We aim to make procurement a great place for our people, evolve our capabilities, and seize strategic opportunities.

3. What strategies or approaches do you employ to manage supplier relationships and ensure a reliable supply chain?

Our suppliers are essential as we transition from an international oil company to an integrated energy company. We focus on performance management, clear contracts, effective communication, open feedback loops, and genuinely caring about our suppliers' input. We encourage our suppliers to speak up and partner with us. Together, we can make a difference in ensuring a reliable supply chain for our customers.

4. Could you share an example of a successful procurement initiative or project that you have led at bp? What were the key factors that contributed to its success?

I'm proud of our aim to increase supplier diversity, equity, and inclusion. We aim to achieve $1 billion in annual spend with certified diverse business enterprises by 2025. Through this initiative, we've spent around $125 million through 1Q this year and aim for $420 million for the full year (2023). This spend positively impacts the communities where we operate.

Supplier diversity is a key focus for me, both at bp and in my role as a board member of SRMSDC. Partnering with my board colleagues, we advocate for supplier diversity, engage, and develop diverse suppliers to help them succeed. It's the right thing to do, boosting economic growth for underrepresented groups in our communities.

5. Are there any specific challenges or opportunities that you anticipate in the field of procurement in the near future?

Procurement faces several challenges and opportunities in the near future. The energy transition necessitates building entirely new industries and supply chains, offering exciting opportunities. Supply chain disruptions, sustainability considerations, digital transformation, talent shortages, and a shift toward a more strategic role for procurement are some of the challenges and opportunities. These changes make procurement an exciting field to be in, as we navigate the complexities of the evolving global landscape.