Enel bases its purchasing processes on pre-contractual and contractual conduct which is focused on reciprocal loyalty, transparency and collaboration in order to have a resilient and responsible supply chain, which can understand and adapt to the context and which is committed to adopting best practice in order to take opportunities and mitigate any economic, environmental and social risks.
The procurement process increasingly assumes a central role in value creation, thanks to greater interaction and integration with the outside world and with the different parts of the Company’s organization.
Constant analysis of the economic and international scenario allows for the best suppliers to be chosen, without sector or geographical constraints. Suppliers are involved from the moment the internal need arises; their proposals are heard and innovative approaches are developed together.
Another key aspect is the adoption of new digital technologies that foster the rapid circulation of information and the identification of decisions and actions. The cornerstones of the transformation for a new management of the procurement process therefore consider the following as pillars:
I capisaldi della trasformazione per una nuova gestione del processo di acquisto vedono quindi come pilastri:
- maximizing the value of procurement activities in its various forms: security, saving, quality, performance, revenues, flexibility, cash flow generation and risk reduction;
- the improvement of the experience in stakeholder relations, in an endto- end framework that better integrates internal customers and suppliers;
- the central role of the people who work in the Global Procurement Function, who are the drivers of change.
Openness to innovation and enhancement of experiences and skills form the foundations for the process.
Furthermore, suppliers are fundamental allies in the process of developing a new circular economy-oriented approach in which the use of virgin raw materials is extremely small or almost completely eliminated. A fully sustainable model focuses on innovation and environmental protection, in which all the parties involved can reinvent the parameters that regulate production and economic flows. Enel is set on beginning down this path of knowledge and analyzing its impacts, and has launched the “Environmental Product Declaration (EPD)” project, initially considering 6 product categories1, involving all suppliers (or potential suppliers) in the merchandise category. The EPD is an effective tool to highlight a company’s commitment to reducing the environmental impacts resulting from an asset’s production cycle or the provision of a service. This voluntary declaration must be prepared on the basis of the product life cycle analysis2 and drafted according to the guidelines of the UNI EN ISO 14040 standards and the specific Product Category Rules (PCRs). In order to encourage this change, in early 2018 Enel presented the first seminar on the “Circular Economy Initiative for Enel Suppliers Engagement” project, which saw the involvement of 30 major suppliers worldwide.
1 Wind turbines, insulators, storage, smart meters, switches, photovoltaic systems.
2 LCA - Life Cycle Assessment. The product life cycle analysis is a method created to help quantify, interpret and evaluate the environmental impacts of a specific product or service throughout its entire lifespan.