|The integrated procurement process at Endesa|
|1. Requirements plan for Business Lines - All requirements of each business line are collected in the Procurement Plan.
|2. Vendor Rating System - Assessment of environmental, social and ethical aspects among others.|
|3. Purchase request management - The needs are processed by the Procurement area to start the bidding.|
|4. Tender process - Each buyer contacts the possible vendors and communicates the technical and commercial specifications that will be required to perform the works.|
|5. Contract formalisation - Once the bid reception and appraisal process has ended, the contract will be signed by two parties to start the contracted work.|
|6. Provision of service|
|7. Vendor rating - Performance appraisal of the suppliers once the works has been performed.|
Main results in 2017:
|Main results in 2017|
|1.887 million of euros purchases of materials and services|
|5.548 suppliers provided services to Endesa|
|649 suppliers rated in the last 4 years|
|100% of the contractors in Spain and Portugal have received Occupational Health and Safety Training|
In April 2017, the requirements regarding sustainability were updated in the process of classifying providers, which determines whether or not a supplier complies with the requirements to work with ENDESA. The new requirements are:
- Assessment of compliance with Human Rights standards
- Assessment of compliance with Environmental Standards
- Assessment of compliance with Occupational Safety standards
|% verifications that include aspects of sustainability in the supplier qualification process|
|Occupational Health and Safety||2015
|(*) In 2015 and 2016, social aspects that addressed issues related to human rights were evaluated. Specific evaluations in human rights are made from 2017|
Within the process of evaluating the sustainability requirements, in-depth audits are expected to be carried out that may even include “on site” visits to verify compliance with the requirements demanded to work with Endesa.
This process is complemented through the Vendor Rating system, which is intended to monitor the performance of suppliers during the provision of service period. The score obtained in the process may serve as an incentive for future bidding processes and to maintain the contractual relations.
Through these systems (classifying suppliers and Vendor Rating), Endesa establishes a continuous dialogue with its suppliers and allows identifying opportunities for improvement, which require the implementation of action plans by the suppliers to maintain the classification, and therefore, to continue being a supplier for Endesa. These plans may incorporate actions intended to improve the environmental behaviour in the provision of service, to guarantee the strict compliance and respect for human rights or deploy safety management systems of its workers with the maximum rigour and excellence.