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Suppliers

Hera considers its suppliers as strategic partners for the growth of the Group and not only for its role in the value chain. The qualification and assessment of suppliers verifies the requirements of technical, economic and organizational quality, compliance with environmental, safety and corporate social responsibility standards, as well as compliance with the Group's code of ethics.

The vendor management system represents, since 2012, the supplier qualification model and is integrated with the e-procurement platform, providing concrete advantages in terms of transparency, opportunities and competitiveness.

In September 2018, as part of process innovation projects, the new supplier qualification portal was inaugurated, with the aim of simplifying the qualification process, updating data and usability of information, guiding the uploading of data to be inserted in the system. The new portal, allowing direct access to the supplier to each of the individual questions in the qualification document, considerably reduces both the time required to enter data and the first qualification, and the time required to update the data in the event of changes. The response of the supplier fleet was positive: at the end of December 2018, 35% of the supplier base had already been upgraded with the new portal.

Since 2008, and therefore about 10 years ahead of Italian legislation, the most economically advantageous bid approach is preferred in the selection of suppliers; the selection of suppliers therefore uses sustainability criteria consistent with the principles of the code of ethics. In managing contracts, Hera guarantees efficiency, cost-effectiveness, neutrality and non-discrimination in procurement. This approach made it possible to adopt social responsibility actions in procurement such as the memorandum of understanding on procurement, the use of employment protection clauses, the subcontract review and the supplier monitoring plan.

At the end of 2018, the companies supplying goods, services, professional activities and work to the Hera Group included in the pool numbered 5,110.

In particular, Hera commissioned purchases for approximately € 912 million (approximately 69% of the total and up 6.6% compared to 2017) to companies that have their sales offices in the reference territory, a percentage substantially aligned with respect to to that of previous years.

 
 

In 2018, the value of supplies by types of work or services requested by the Hera Group to social cooperatives was over Euro 62 million.

Out of the total of the services provided by social co-operatives, over Euro 61 million was assigned for waste management services, amounting to 27.4% of the Group’s total awards for these services. Supplies involved 49 cooperatives or consortia of social cooperatives, hiring 816 persons facing hardship (pursuant to Article 4 of Italian Law 381/91): 558 under permanent contracts and 392 under full-time contracts. At geographic level, the individuals employed were 349 in the Emilia area, and 335 in the Romagna area, 84 in the Triveneto region and 49 in the Marche region.


Main dialogue and consultation initiatives:

 
 
  • Meetings continued with representatives of social cooperatives working in for monitoring the employment of 816 persons facing hardship

Page updated 23 May 2019

 
 
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