Schlumberger Reveals Strong Security Policies Increase Supply Chain Performance

Delivering Return on Investment within Six Months

London, 15 September 2003 — SchlumbergerSema, the information technology business segment of Schlumberger Limited, today announced that as part of a consulting engagement for the French Government, it has completed a survey on supply chain security in France. The survey found that product oriented companies would significantly improve efficiency and competitive advantage by implementing security policies across the extended supply chain.

The report highlighted that companies where a comprehensive security policy has been implemented see improved business performance within six months measured in terms of cost reduction, operation efficiency and customer satisfaction. Despite these proven returns, the report revealed that today less than 10% of companies interviewed had implemented security policies.

The Schlumberger consulting project forms part of an initiative by the French Government to identify cost effective measures to reduce the continuing increase in theft and substitution of merchandise along the supply chain. The initiative is also looking at how to minimize the risk of inclusion of illegal or destructive material and the vulnerability caused by the digitalization of the supply chain.

“We commissioned Schlumberger to conduct this survey because the Company demonstrated a thorough security methodology as well as an understanding of the issues facing the logistics industry today,” said the commissioner from French Ministry of Transport. “The findings of the survey are truly enlightening and we believe that the recommendations made by Schlumberger will help businesses to improve value through cost reduction, reduced liability and improved earnings.”

Schlumberger conducted interviews with over 80 different companies representing the majority of the product oriented businesses including automotive, food, luxury goods, high tech, pharmaceutical, shipping and logistics companies. Schlumberger then analyzed the survey results using its unique Integrated Business Security (IBS) methodology and tools to identify solutions to common security problems in the supply chain management process today. In addition to comprehensive policies and awareness campaigns, the technology solutions identified include electronic tags and radio frequency tracking systems, location devices using mobile phones, smart cards for both logical and physical access, secure web sites for access to same information from any place and any time.

“For product companies, the tracking and safety of goods is one of the most important considerations to ensure competitive advantage,” said Farrokh Abadi, vice president for security, SchlumbergerSema. “Today the majority of this process is conducted electronically making the IT infrastructure and its security a critical asset for logistics companies.”

One of the participants in the survey noted that they had achieved impressive performance improvements not only because they introduced new security devices and procedures but also because they redesigned the extended supply chain process in a secure perspective. Security has been quiet a business enabler.

In an extremely competitive environment, the research confirmed that thousands of small- to medium-size shipping businesses remain the most vulnerable link in the global supply chain propagating this weakness to the overall supply chain. Schlumberger recommended, therefore, that it is this group that most urgently requires help and is publishing a guide that addresses the needs of this sector. The guide includes a Vulnerability Assessment questionnaire, a list of recommended solutions with respect to their level of risk tolerance and key performance indicators to help measuring security policy results.

An abstract of survey results will be available in English at www.predit.prd.fr

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About Schlumberger
Schlumberger is a global oilfield and information services company with major activity in the energy industry. The company employs 78,000 people of more than 140 nationalities working in 100 countries and comprises three primary business segments. Schlumberger Oilfield Services is the world’s premier oilfield services company supplying a wide range of technology services and solutions to the international oil and gas industry. WesternGeco, jointly owned with Baker Hughes, is the world’s largest and most advanced surface seismic company. SchlumbergerSema is a leading supplier of IT consulting, systems integration, and network and infrastructure services to the energy industry, as well as to the public sector, telecommunications and finance markets. In 2002, Schlumberger operating revenue was $13.2 billion. For more information, visit www.slb.com




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