At Enel, we base our procurement processes on pre-contractual and contractual conduct centered around mutual fidelity, transparency and collaboration. In addition to meeting certain quality standards, the services of our vendors must also go hand in hand with the adoption of best practices in terms of human rights, health and safety in the workplace and environmental and ethical responsibility.
Our procedures are designed to guarantee service quality in full respect of the principles of economy, effectiveness, timeliness, fairness and transparency.
In 2016, we signed new agreements with a total of about 36,000 suppliers.
Vendor management involves three essential stages, which integrate social, environmental and governance issues in the evaluation process. These are:
- Qualification system;
- General terms and conditions;
- Vendor ratings.
Enel’s global vendor-qualification system (with 7,248 active qualifications as at December 31, 2016) enables us to accurately assess businesses that intend to participate in tender processes and acts as a guarantee for the Company, while the vendor-rating system seeks to monitor vendor services in terms of the quality, timeliness and sustainability of contract execution.
In 2016, we continued working on the Sustainable Supply Chain project, which has led to a standardization in the parameters used to monitor businesses in terms of environmental impact, safety and the respect of human rights, and we defined specific sustainability requirements that are in line with international best practice and which will become mandatory in 2017 for all vendors wanting to be included in Enel’s register of qualified businesses.
Finally, project One Safety, a mechanism based on observing the conduct of contractor employees in order to promote safe conduct, also continued during the year. In accordance with the Safety Policy, each Division of the Enel Group has been organizing training and discussion sessions with contractors (see the section “Workplace health and safety“ below).