In March, the Company’s Procurement Office launched six Procurement Teams to review companywide procurement practices. These cross-functional teams include members from across the organization whose goals include streamlining, achieving efficiencies, synergies and cost savings, and enhancing vendor relationships in the following areas:

• Fleet
• Pipe and Fittings
• Maintenance and Repair Operations
• Express Shipping
• Office Supplies
• Travel

“Launching these teams represents an important shift in the way our Company conducts business,” said Rudy Gonzalez, Director of Procurement. “Although each business unit currently does a great job with day-to-day purchasing, by connecting the highly experienced individuals across our Company, we will leverage our collective strengths to bring value, innovation and cost savings that will support Chesapeake’s long-term earnings and growth objectives.”

The teams initially met in Dover, DE for two days of training and team building. Since then, the teams have been meeting on a biweekly basis to analyze their purchases, processes and suppliers, and to develop a sourcing strategy that may be implemented across the Company.

More recently, each of the six team leaders provided an update to the Procurement Council which includes Beth Cooper, Senior Vice President and CFO; Steve Thompson, Senior Vice President; Jeff Householder, President of FPU; Vikrant Gadgil, Chief Information Officer; and Jeff Tietbohl, Vice President of ESNG.

“The level of collaboration and commitment by the team members from across the entire Company has been tremendous. I am confident that their efforts will transform how we view and conduct procurement activities in the future,” said Steve Thompson, Senior Vice President. “I am excited to be part of this important initiative and look forward to the recommendations that the teams will be bringing forth later this year.”

Team members will continue to meet throughout the remainder of 2018 to evaluate, secure and implement the positive results identified through this cross-functional strategic sourcing process. Additional information will be shared companywide as it becomes available.