- Increased number of orders upon which reliability analysis is performed, including projects in Mexico (Soto La Marina).
- Requesting of Quality, Safety and Environment certifications for new families identified as critical.
- Redefining of the "Supplier Circle", extending the scope to non-approved companies, and linking the initiative to the Enagás Corporate Entrepreneurship Programme.
- Introduction of a requirement for orders and contracts to be signed with a digital certificate, thus eliminating the paper format.
- Inclusion of global legislation compliance criteria, applicable to third parties with whom the company deals, in the analysis of risks posed by new suppliers (financial, regulatory and reputational risks).
- Supply chain risk analysis.
- Incorporation of critical criteria in the classification of suppliers (categories).
- Definition of the supplier external audit programme (areas, frequency, supplier types audited, etc.).
Suppliers must be approved in order to work with Enagás. The company currently works with 1,781 approved suppliers, which are classified in families according to the products or services they offer.
- Works and services: IT & communication suppliers, engineering, etc. In 2015, employees from 525 service providers carried out work at Enagás facilities.
- Supplies: electrical equipment, piping manufacturers, rotary machine manufacturers, manufacturers of instrumentation and control devices, among others.
They are in turn classified by category according to security and cost. Product and service suppliers that represent a higher cost and security risk are classified as "main" or "critical" (categories 1 and 2). Enagás has 1,051 suppliers of this type.
In 2015, we began working with 46 new suppliers and stopped working with 8 suppliers because they discontinued their activity, merged with third parties or for breach of contract.
In its international activities, Enagás promotes the use of local suppliers in the country where the services or materials are to be procured, as is the case in Mexico, Chile and Peru. To that end, we are continuously seeking and contacting new local suppliers that we can use in said countries, providing they meet Enagás' approval requirements.
A high percentage of procurements made by Enagás are for facilities in Spain. Most contracts for works and services are thus with Spanish companies.
Enagás' suppliers meet the following approval requirements:
- Capacity and resources to meet technical, quality, environmental and safety requirements, and upholding thereof over an extended period of time.
- Observance of the principles of the United Nations Global Compact and the Universal Declaration of Human Rights.
- Requirement for certifications for suppliers of certain product or service families: quality (required from 47% of critical suppliers), environment (required from 27% of critical suppliers) and occupational risk prevention (required from 23% of Enagás' critical suppliers).
As a consequence of these approval requirements, as well as additional aspects, Enagás carries out the following assessments on their suppliers, in areas of the supply chain where risks have been identified (quality, environment, security, work-related issues, compliance and corporate responsibility).
|Global assessment areas||Assessment aspects||Critical suppliers assessed||Assessment results||Impact of the assessment|
|Quality||Availability of ISO 9001 certification.||495 suppliers, 29 of which are new, were required to have this certificate.||98% of the suppliers required to have this certificate are in possession of it.||Focus on continuous improvement and on the management of processes with our suppliers.|
|Reliability analysis (assessment of aspects such as technical quality, meeting deadlines and the quality of the service provided).||Assessment made of 212 suppliers, belonging to 63 product categories.|
99% of suppliers received scores above the acceptable level (50/100). The cumulative average results obtained since 2011, by supplier type, are as follows:
Following this analysis, Enagás reported the resulting assessment to each company, and their position compared to the average for each category. They were also informed of all deficiencies identified so that they could work to improve them.
Meetings were held with suppliers with particularly poor scores to assess the results and propose corrective measures.
|The environment||Availability of ISO 14001 certification.||280 suppliers, 15 of which are new, were required to have this certificate.||91% of the suppliers required to have this certificate are in possession of it.||Focus on continuous improvement and on the management of processes with our suppliers.|
|Environmental impact during construction of infrastructures (on-site environmental audits).||8 critical suppliers of construction work in domestic projects were audited.|
50% of the audited suppliers passed the audit without significant non-compliance.
The negative impacts detected relate to document deficiencies in waste management and environmental management procedures, failure to conduct emergency drills and environmental monitoring inspections.
|Process improvement. 100% of the suppliers audited have implemented actions to mitigate their environmental impact.|
|Impact in relation to climate change (CDP Supply Chain initiative).||56 suppliers responded to the CDP Supply Chain questionnaire on climate change (118 were invited to take part).|
See the ‘Climate change and energy efficiency’ section.
See the ‘Climate change and energy efficiency’ section.
|Labour||Social Security status of permanent staff at Enagás facilities.||525 service providers that performed work at Enagás' facilities in 2015.||100% of providers have documentation accrediting the social security registration status of their employees.||Work performed while respecting employees' labour rights.|
|Health and Safety||Existence of OSHAS 18001 certification (approval requirement).||238 suppliers, 13 of which are new, were required to have this certificate.||88% of the suppliers required to have this certificate are in possession of it.||Focus on continuous improvement and on the management of processes with our suppliers.|
|Accident rate of suppliers with staff who perform work at Enagás' facilities.||57 suppliers audited. Furthermore, an assessment was made of the accident rate of 525 service providers that performed work at Enagás' facilities in 2015.||100% of audited suppliers have passed the audit without significant non-compliance.||Process improvement.|
|Compliance||Legal obligations relating to tax and social security, existence of penalties or non-compliance.||1,781 (all approved suppliers).||100% meet their obligations.||Guarantee of legal compliance and performance of the work while respecting the employees' labour rights.|
|Corporate Responsibility||CSR certification.||While Enagás does not require any supplier to have CSR certification in order to work with the company, it does value those that have it positively.||7 critical suppliers approved by Enagás have CSR certification.||Focus on continuous improvement and on the management of processes with our suppliers.|
|CSR score(1): ethics, human rights, labour practices (workforce structure, hiring of disabled people, etc.), safety, the environment, stakeholder engagement, quality and transparency, etc.||473 main suppliers rated (29 are new). Moreover, audits were conducted on 33 critical suppliers using Achilles.|
Enagás has a detailed score for each supplier and a comparison with the average of the suppliers included in the platform.
As a result of these assessments and audits, agreed-upon actions are proposed and monitored in subsequent visits.
|Extension of Enagás' commitment to the sustainability of the supply chain.|
(1) Assessment carried out using the Achilles Repro platform.
Enagás has launched SACE, its new Contractor Access System, in line with the company's commitment to implementing and enforcing the regulatory framework for occupational health and safety, involving not only its own employees, but also the contractors with whom it works. With the implementation of SACE, Enagás seeks to ensure that all procedures are available, that all processes are of high quality and that there is smooth and ongoing communication between companies in the gas industry, thereby maintaining the highest safety levels.
From now on, as Enagás contractors, companies (as well as their potential sub-contractors) must be assessed and obtain the 'apt' classification in the SACE application process. This classification must be maintained throughout the duration of the contract as a contractor; to do this the company must register and permanently update the information and documentation submitted.
In order to increase the likelihood of collaborating with our suppliers, we have redefined the selection criteria that our suppliers must meet to collaborate in the Enagás "Supplier Circle".
We thus contemplate the likelihood that new, non-approved suppliers can participate in the initiative through collaborations that involve new business opportunities and/or undertaking projects related to efficiency, sustainability and innovation. We have also linked the initiative to the Enagás Corporate Entrepreneurship Programme.
The status of some of the key projects being undertaken with our suppliers is set out below.
|Montrel||Marketing agreement and transfer of rights of SICAN software.||Formalisation of the first marketing of SICAN.|
|APLEIN INGENIEROS||Development of a monitoring and supervision system to monitor and supervise energy metering stations with redundant instrumentation.|
Enagás is exploiting one of these applications in the G-02 Gallués International Connection in Navarra. The company is also studying the possibility of signing a commercial exploitation agreement and transfer of rights of the system.
|Development of a system to supervise the metering of natural gas for pipelines.||A simulation of the system has been developed, revealing the functionalities of three specific real-time pipeline models, which produced satisfactory results.|
|INDRA||Development of a perimeter protection system to monitor intrusion in critical infrastructure.||Enagás has begun to install the system in Bermeo by means of underground wireless sensors. This technology will improve security at Enagás facilities and lead to savings on the maintenance of these protection systems.|
The Spanish Association of Purchasing, Contracting and Procurement Professionals (AERCE) named Enagás runner-up in the 'Strategy' category at the latest edition of the ‘El Diamante de la Compra’ awards. These awards, which acknowledge the most outstanding projects related to Purchasing Department functions, highlighted the work undertaken in regard to selecting suppliers for Enagás' international projects as they integrate perfectly with the company's strategy and contribute to its success.