Supplier Performance Management
We reduce risks, improve results and reward excellence.
The Supplier Performance Management (SPM) process is managed on WeBUY, Enel's procurement platform.
The methodology of the process includes periodic evaluation of the Supplier by Contract Managers, users and beneficiaries of the contract throughout the effective period of the contract and its accesory obligations.
Performance evaluation
Performance evaluation can be carried out for one or a set of the following categories:
- Safety: considers information gathered during inspections and any violations of contractual rules and provisions related to Health and Safety issues (e.g., failure to use personal protective equipment during work, failure to report minor work accidents to Enel within 24 hours).
- Enviroment: considers information gathered during inspections and any violations of regulations and contractual provisions related to environmental issues (e.g., atmospheric emissions without authorization or non-compliance with the limits imposed by current regulations).
- Quality: considers information regarding the quality of services, works, and goods provided by suppliers during contract execution (e.g., compliance with technical specifications, product reliability).
- Punctuality: considers information on compliance with contractual/agreed timelines (e.g., punctuality of supply/documentation delivery).
Methodologies for the evaluation of the categories
For category evaluation, there are common methodologies and specific methodologies that depend on each business. Below are the aspects subject to evaluation (where applicable).
COMMON METHODOLOGIES
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KPI data by project phase/type of activity |
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Engineering Phase
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KPI data by project phase/type of activity |
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Engineering Phase
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SPECIFIC METHODOLOGIES
| KPI | |
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| KPI | |
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| KPI | |
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Quality
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| KPI | |
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Quality & Punctuality
Punctuality
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| KPI | |
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Compliance level with the Service Level Agreement (where applicable) |
| KPI | |
Punctuality
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| KPI | |
Punctuality
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| KPI | |
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Quality
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| KPI | |
Punctuality
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Consequence Management
Based on the score obtained from the Supplier in the Punctuality and Quality categories and their trend over a 12-month period, ENEL reserves the right to apply a consequence management model in relation to the goods group, to resolve any critical issues, stimulate improvement, and reward excellence. The priority scope of Consequence Management activities is defined by each business area through the identification of a set of target goods groups.
Any supplier evaluation is integrated with performance analysis in terms of Safety and Environment, those aspects always play a priority role in supplier assessment.
Since its activation, the Supplier Performance Management process has seen a progressive increase in coverage in numerical terms of the number of Contracts accounted and economic volume across the different businesses and Countries of the Enel Group.
Supplier performance data are used to evaluate development opportunities to be delivered through the Supplier Development Program.