92%
value of public tenders
awarded by adopting the
economically most
advantageous bid method
67.4%
of total tenders
awarded on the basis of the most
economically advantageous bid
approach
25/100
average score
assigned to sustainability
in tender awards

The Vendor Management system

Since 2012 the vendor management system has represented the model for the self-registration and qualification of the suppliers and addresses all the companies interested in spontaneously proposing themselves in the Hera Group suppliers list, for any commodities category. Via the portal, the Group’s suppliers can avail themselves of a number of tangible benefits in terms of transparency, opportunity, competitiveness and integrity of the data.

Within the qualification area of the supplier portal, the companies can access the procurement product categories, making it possible to use the following services:

  • independently update the profiles of interest, putting oneself forward for any new commodity groups within the accredited suppliers system;
  • keep ones details up-to-date independently, as well as the schedule of the supplier qualification documents;
  • check one’s qualification and periodic assessment status;
  • gain the possibility of being called more frequently to present bids;
  • gain the possibility of receiving information relating to the awarding of a contract;
  • being updated on the Group’s initiatives of economic interest.

Supplier qualification and assessment is regulated by the checking of the technical, economic, and organisational quality requirements, compliance with environmental and safety regulations and corporate social responsibility requisites, as well as acceptance of the Group Code of Ethics. In this connection, the supply contracts envisage a termination clause in the event of the failure of suppliers to comply with the principles of the Code. Therefore all qualified suppliers are subjected to this evaluation system.

Inclusion in the Hera supplier qualification system, managed using the e-procurement platform, envisages an annual membership fee in keeping with the number of commodity sub-categories of goods groups which the supplier shows interest in which varies from Euro 50 to 250.

In the qualification phase, the suppliers are required to register with the white list care of the related Prefect’s Office for the sectors of interest identified by the Italian Prime Minister’s Decree dated 18 April 2013, or rather: transportation of materials to landfills on behalf of third parties, transportation and disposal of waste on behalf of third parties, supply and transportation of earth, aggregates, concrete, bitumen, rental of machinery without skilled operators, supply of processed iron, road haulage on behalf of third parties, worksite security. The white list is the list of the suppliers who provide services and executors, as things stand, not subject to the risk of mafia infiltration.

Another important aspect of the Vendor Management system is the monitoring of the companies who jointly take part in the performance of the contracts for the Hera Group in the role of sub-contractors, consortium executors or principals in temporary joint ventures. By means of the reporting generated by the monitoring activities, it is possible to improve the governance of the purchases, as well as extend the mechanisms for valuation and control envisaged by the Group procedures to all the companies involved in the execution of the tender, overseeing the entire chain of the economic parties involved in the service for various reasons.

A process for the up-dating of the qualification documentation of all the suppliers continued during 2017, further to the publication of the New Tender Code (Italian Legislative Decree No. 50/2016). These activities will also have continuity in 2018, so as to complete the adaptations introduced by Italian Legislative Decree No. 56/2017 containing supplementing and corrective provisions to Italian Legislative Decree No. 50/2016.

Within the sphere of the process innovation projects, the Hera Group will launch a computerised project for the re-engineering of the supplier qualification portal in 2018, with the purpose of simplifying the qualification process, the up-dating of the data and the usability of the information, guiding the uploading of the data to be input in the system.

During 2017, March Multiservizi launched a process for the adoption of the platform for the qualification, selection and assessment of the Group suppliers, which will conclude in 2018.

In the last few months of 2017, an automatic and traceable system was introduced for the alternation of the invitations to the suppliers to participate in private tenders which, basing itself on a series of parameters including the number of invitations received, their distribution over time and the Vendor Rating score, guarantees the transparency of the supplier selection process also on a consistent basis with the Hera Group Guidelines.

The E-procurement system

In addition to the suppliers portal, an additional instrument useful for communication between the Hera Group and its suppliers is the integrated e-procurement platform for the on-line management of the procurement. Having extended this instrument to public tenders as well as from 2011, the Hera Group confirms it as a best practice at Italian level in the use of evolved tools in the e-commerce sphere.

During 2017, Hera traded almost 100% of the total volumes on the e-procurement platform.

When using this platform, the suppliers are supported by a dedicated help desk service. In 2017, there were 15,114 requests for information received, all sorted out in the timescales envisaged by company procedures.