93.5%
value of public tenders
awarded by adopting the
economically most advantageous
bid method
72.8%
of total tenders
with the economically most
advantageous bid method
32/100
average score
assigned to sustainability
in tender awards

Supplier assessment and checking

In 2018, for the purpose of facilitating the supplier monitoring and management activities, an automated system was introduced, care of the competent One-stop Social Security Point, for checking the INPS/INAIL and Cassa Edile contribution payment regularity of all the suppliers active and present in the Hera Group list. Specifically, using the coding and record file traceability of the parties grouped together in temporary joint ventures (representative and principals), consortiums and specific executing companies, sub-contractors and the like relating to the individual service purchase document (order and/or contract), it was possible to carry out the control of the correct payment of the supplies and services only in the presence of complete regularity of the payments of the social security contributions.

The periodic assessment makes it possible for the active supplier to receive an up-date of their scoring for each individual qualified commodity in the vendor rating system, with an increase in the event of total absence of anomalies, or with a decrease in relation to the seriousness of the anomalies detected. The assessment can always be consulted autonomously by the supplier in their specific area of the supplier portal.

The scores have been divided up into three categories which contribute towards channelling the rotation, selection and invitation – by the individual buyers – of the qualified suppliers by specific commodity class affected by the private tenders carried out by the Hera Group. The score assigned to each supplier via the rating system influences the list of the firms invited to participate in tenders. Problematic suppliers are excluded from the under-threshold invitations unless they fall within the qualified brackets, via suitable corrective action and/or accurate improvement plans.

Area type Scoring interval Level of reliability
GREEN area = 75 pts. and ≤ 100 pts. from averagely reliable to very reliable
YWLLOW Area = 60 pts. and ≤ 74 pts. from sufficiently reliable to averagely reliable
RED area ≤ 59 pt. critical

 

The supplier assessment management and monitoring model continues to ensure, via the maintenance of the reporting active since 2011, the quarterly frequency for the concession of the bonuses. By contrast, the methods for the calculation of the decreases takes place by means of the closure of the analysis of the anomalies and the definition of specific corrective actions. By means of the formalities introduced it is therefore possible to divide up the decrease in the score over the supplier firms responsible for the anomaly, who can be inferred from the field monitoring documentation (check list) compiled by the contact Individual or their appointee. This allows the Company contact individual/Director of works to check the contractual performances of the suppliers in the fundamental areas of quality, safety and the environment with the addition of a fourth concerning corporate social responsibility. In the event of serious or very serious non-compliance of the supplier, there is also the possibility of temporary suspension from new invitations to private tenders for a period which ranges from three to six months. In 2018, suspension was activated for 12 suppliers due to very serious non-compliances. In 9 of the cases, the suspension was for six months; for the remaining cases the months of suspension were three.

The control of the suppliers takes place by means of the checks carried out by the company contact individuals (in turn subject to internal audits on the observance of the procedures) and via inspection visits care of the premises of the companies carried out by a certified third party so as to check the observance of the requirements of the SA8000 standard. This monitoring by the company contact personnel takes place for the deliveries of goods on receipt, while for the services and work it takes place during the progressive execution of the service, for each related quarter. Specifically, the check is carried out by means of compiling and signing specific monitoring check lists, compiled and signed also in relation to checks carried out on sub-contractors, if present.

During 2018, another 7 check lists of services were standardised, for the purpose of ensuring an increasingly greater coherence and equity of the assessments. Steps were taken to review the 15 check lists already in force. Once streamlined, agreed on and standardised, the check lists were made available on the company information portal to the contract managers, together with the specific instructions for use and the standardisation of the various anomalies (specific non-compliances).

The policies and activities described make it possible to ensure increasingly greater coherence and equity in the assessments made at Group level.

The number of checks on services and work is defined on the basis of the contractual amount, the duration of the contract, and the impact on quality, safety, the environment and on the corporate social responsibility of the services monitored.

The classification of the “quality warnings”, sent to the supplier, as a consequence of the detection, also makes it possible to ensure the prompt and correct periodic evaluation of the qualified suppliers. The four categories identified essentially reflect the main certifications present in the Hera Group: ISO 9001, ISO 14001, OHSAS 18001 and SA 8000.

In 2018, the joint internal audits of the Quality, Safety and Environment Department and the Procurement and Tender Contracts Department of Hera SpA continued, for checking the procedures adopted care of several contract contact individuals: these audits were 12 and, on the basis of the problematic elements detected, a new training plan was developed for the company contacts. The plan illustrated and reconfirmed – to more than 400 individuals – the innovations introduced in the accurate monitoring of the suppliers (including sub-contractors) and within the sphere of the data loading in the company information system.

In 2018, furthermore, inspections continued within the SA 8000 standard certification sphere in the facilities of suppliers: in some cases partially non-compliant conduct was noted which was promptly highlighted, with consequent launch of corrective action and prompt verification of the same. The inspections were 8 in total, of which 1 carried out directly on site, care of the Hera worksites, rather than care of the premises of the supplier.

Findings (2018)
Type 2017 2018
Observation 74 113
Fairly unserious NC 198 115
Serious NC 345 338
Very Serious NC 20 211
Total 817 777

Excluding Marche Multiservizi

Type

2017

2018

ISO 9001

470

519

OHSAS 18001

306

214

SA 8000

25

16

ISO 14001

16

28

Total

817

777

Excluding Marche Multiservizi

At Group level (excluding Marche Multiservizi) during 2018, 777 cases of non-compliance were detected (-5% with respect to 2017), with an increase of 10% compared to those classified as very serious. Of the total, 659 were closed as at 31 December 2018. The non-compliances relating to the observance of safety legislation numbered 214, those relating to respect for the environment were 33 and those concerning the social commitment were 16.


Excluding Marche Multisevizi.