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 procurement procedures are designed to guarantee service quality in full respect of the principles of economy, effectiveness, timeliness, fairness and transparency.
In 2017, we signed new agreements with a total of about 31 thousand 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 more than 6,700 active qualifications as at December 31, 2017) 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 2017, we continued working on the Sustainable Procurement project, with close collaboration between Procurement and the Sustainability units (at both the global and local levels), with the goal of increasing the integration of environmental, social and governance issues in the supply chain strategy, creating shared value with suppliers in a vision of a circular economy. A key element is the standardization across the Group of supplier selection, assessment and monitoring criteria from an ethical point of view and in particular the impact on the company.