About Procurement

Using a center-led approach, Fluor provides procurement services to large and small projects worldwide. We can independently support client procurement activities as a stand-alone service or work in concert with Fluor's engineering, construction and maintenance teams as an integrated function. Our advanced sourcing methods, market intelligence and global purchasing volume help us obtain the best pricing, quality and service for our clients.

Our experience is broad, procuring an average of more than $6 billion of equipment, materials, and services for each of the past ten years. Fluor procurement professionals around the globe employ our best-of-class systems and work collectively in a global knowledge-sharing community to provide delivery of the right material, at the right time, to the right place, and at the right price.

Total Supply Chain Management

Strategic Sourcing

By leveraging our global project execution experience and technical expertise, we are one of the first companies in our industry to apply strategic sourcing principles to the capital program supply chain. We practice global strategic sourcing and form supplier alliances known as Supplier Relationship Agreements (SRAs).

Our rigorous analysis and selection process secures beneficial long-term agreements with the industry's most advantaged suppliers. By pre-negotiating agreements with suppliers in more than 40 categories of capital goods, we can lower overall procurement costs and shorten procurement cycle times to a greater extent than by procuring goods solely on a project-by-project basis.

Material Management

Fluor efficiently manages every step in the supply chain. We plan and execute cross-functional activities so that the best quality and optimum quantity of materials are available in a timely and cost-effective manner. Our material management professionals, located regionally and worldwide, support our projects by providing immediate access to virtually all of the manufacturing, fabrication and distribution centers of the world.

MaterialManager^®, our Web-enabled suite of material management tools, links our procurement work processes to project management systems. MaterialManager promotes the use of best practices in our procurement and material management activities, and collects key project information in a central location.

Contract Management Expertise

Fluor has more than 400 contracting professionals worldwide, providing the full scope of pre-award and post-award contracting activities. These activities include development and management of complex Lump Sum Turn Key (LSTK) Engineering, Procurement, and Construction (EPC) contracts, contract risk assessment / mitigation / management, and full task force and jobsite support. During 2006 43 percent of this group was dispatched to project assignments in over 22 countries. In support of this mobile group and future personnel demands, emphasis has been placed on people development and training, designed to reach all personnel regardless of discipline or location.

CMSi^sm, a Fluor-developed, web-based contract management reference system, provides real time data to both project and functional management. CMSI allows immediate access to all contracting activities, independent high level risk analysis, and reporting of consolidated contract information.

Logistics

Fluor has proven experience in providing transportation and logistics services for clients worldwide. Logistics planning, for the timely and cost-effective delivery of products to the jobsite, is a major factor in the success of any project.

Our logistics group develops, implements, and manages a transport/logistics program aimed at meeting the needs of large and small projects, assuring cost-advantaged solutions worldwide. This program includes: logistics planning, cargo projections, survey of ports and export entry, packaging specifications, storage and warehousing requirements, OS&D claims, freight bill auditing, and personnel relocation.

Export Compliance

Fluor is committed to compliance with applicable export control laws and regulations in the execution of its projects. Fluor's Export Compliance Program meets the criteria developed by the Department of Commerce, Bureau of Industry and Security and strives to follow industry best practices. The Program has closely monitored post 9/11 regulations, heightened enforcement activity and the globalization of Fluor's supply chain. This Program encompasses compliance not only with the Export Administration Regulations (EAR), but also with International Traffic in Arms Regulations (ITAR) and Office of Foreign Assets Control (OFAC) regulations. This center-led organization works closely with the Project Procurement and Logistics organizations to support daily supply chain transactions.

Global Market Knowledge

Fluor's intelligence network looks beyond current supply chain activities to identify and analyze longer-term material demand, supply and pricing trends. We closely follow global supply chain developments and regularly monitor supplier performance through market surveys, assessments and our supplier performance measurement database. This market knowledge helps us confidently provide intelligent and timely recommendations regarding our clients' procurement needs.

Supplier Diversity

Fluor is committed to achieving excellence in supplier diversity. We strongly believe that diversity of opinion, thought, background, skills and perspectives builds upon our combined strengths to drive mutual success among our employees, clients, shareholders, and communities. We have built a diverse supplier base through innovative efforts such as our Supplier and Contractor Online Registry E-version (SCORE!^SM). SCORE! provides an accessible channel for all suppliers of goods and services to register with Fluor, including those suppliers with diversity certifications. Fluor continually seeks proactive business initiatives that expand the opportunities offered to diversity suppliers.