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Sustainable supply chain

Enel bases its procurement processes on pre-contractual and contractual conduct centered around mutual good faith, 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 and working conditions, workplace health and safety 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.

The procurement process plays a central role in value creation in its various forms (safety, savings, timeliness, quality, earnings, revenue, flexibility) as a result of ever-greater interaction and integration with the outside world and the different parts of the company organization.

In 2018, we signed new agreements with a total of more than 31,000 vendors.

Supplier management involves three essential stages, which integrate social, environmental and governance issues in the evaluation process. These are:

  • the qualification system;
  • general terms and conditions of contract;
  • vendor ratings.

Enel’s global vendor-qualification system (with more than 6,700 active qualifications as at December 31, 2018) enables us to accurately assess businesses that intend to participate in tender processes and serves 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.

Furthermore, we continued working on those activities that enable an ever-greater integration of environmental, social and governance issues in the supply chain strategy, creating shared value with vendors in a vision of a circular economy.