Work, service and supply contracts in 2017: around 11 billion euro (UM: mil euros)

 

Supplies

Suppliers with which a new contract was signed in the year: 31,329
Works

+12% increase in approved suppliers compared to 2016
Services

Workforce of contractors: 122,505 FTE

The procurement process has a matrix-style organization structure that allows experiences and specific skills to be shared, so as to be able to respond adequately and quickly to business needs. This model provides five different global units and eight local units, according to well-defined responsibilities and governance processes which, by identifying local needs, allow for common strategies and synergies aiming to optimize total costs to be created. This organization structure is completed by two staff units that oversee procurement processes and dealings with suppliers.

It is a fluid and flexible model that helps to make the most of the companies with which the Group interacts, by enriching the portfolio of solutions made available by Enel, respecting local characteristics and considering diversity and innovation as added values.

Procurement procedures are aimed at guaranteeing the quality of services with the utmost respect for the principles of cost-effectiveness, efficiency, timeliness and correctness. The Code of Ethics, Zero Tolerance of Corruption Plan, the Human Rights Policy, Model under Italian Legislative Decree 231/01 and the Enel Global Compliance Program form the framework of purchasing activities and form a de facto guide and code of conduct for suppliers. Each award procedure is designed to guarantee the principles of free competition, equal treatment, non-discrimination, transparency, proportionality, and publicity. Furthermore, the principle of cost-effectiveness may come second to the criteria laid down in invitations for tenders, inspired by social needs, or the protection of health, the environment and the promotion of sustainable development.

From the Open Power perspective, a continuous channel of communication with companies is maintained, sharing their performance evaluations (see the “Vendor Rating” section below) and collaborating to improve them during the entire contract cycle. In addition, Enel’s suppliers have available a single registration point, the “Open Supplier Portal” (www.globalprocurement.enel.com), which enables them to interact with all the companies of the Enel Group through one global dashboard and to use all the services available: respond to invitations for tenders, manage their own approval process, view their own Vendor Rating results, and so on.