“The Vendor Rating system aims to continuously assess and monitor supplier performances and the reliability of the products purchased, to avoid issues and in name of a continuous improvement process.”
Therefore, for each strategic Merchandise Group associated with a single supplier, we objectively and systematically assess the information regarding the Company’s behaviour during the supply process and during the execution of the contract, with particular reference to:
• quality of the goods provided;
• punctuality of the services provided;
• accuracy in the pre-contractual stages and during the contract execution;
• respect for safety during execution.
The results of this assessment determine in the company’s overall Vendor Rating Index and is used by Enel to formulate an overall evaluation of each supplier, in relation to the different types of services and/or goods provided. This evaluation can have effects such as, for example,
the suspension of the qualification previously obtained, or vice versa simplify the qualification’s renewal process. Suppliers can see their Vendor Rating index at all times, using their credentials to access the dedicated section of the Global Procurement Portal; the index can be used both as an evaluation tool in tenders and to continue working together.
“In particular, the index related to Safety has a significant impact on the evaluation of a company’s performance. Additionally, new rules have been introduced to regulate safety violations; they require a period of specific monitoring to record any reiterations which would call for specific sanctions, impact on the Vendor Rating and, in certain cases, could cause the cancellation of the contract.”
Only by systematically monitoring the performance of our suppliers we can maintain our high operation standards and pursue concrete objectives with determination.
As of June 2018, Enel Group’s Vendor Rating has be strengthened through progressive implementation of a new digital app (named EnelTrack&Rate). This system allow registration of any event and negative and/or positive situation concerning the supply of materials and/or performance of contracted services in order to evaluate the performance of suppliers.
Whenever an event is recorded, the supplier receive an e-mail with all relevant details and an invitation to get in touch as soon as possible with the Enel contact person for the contract in order to activate collaboration between Enel Group and its suppliers to resolve any critical problems in timely fashion.
This new system ensure - in a simple and rapid manner - more complete, efficient and real-time performance evaluation of suppliers not only as regards safety and environmental issues but also the quality and timeliness of the service provided.