In 2016 Snam directly provided work for around 660 companies (687 in 2015), 388 of which belong to the small-medium business sector (SME), concluding over 1,000 procurement contacts (in line with 2015), worth a total of approximately €1.36 billion (+€1.27 billion in 2015) including €1.3 billion in Italy (equal to 95.6%). Among the goods purchased the most important material is steel (piping, connectors, etc.) which, in 2016, amounted to a supply of approximately 15,200 tonnes.
Procurement based on the head offices of suppliers, is distributed throughout all regions of Italy, in line with the Company’s roots in the entire country.
At 31st December, the vendor list included 2,245 qualified suppliers, and around 400 suppliers were in the process of being renewed or obtaining new qualifications. The supply chain was checked and monitored with audits during the qualification phase of critical product classes, 634 feedback reports collected on services rendered by 185 suppliers. Additionally, 1,502 suppliers and sub-contractors were checked with regard to regularity of contributions, through 3,089 inspections which led to 87 irregularities intercepted (2.8%). There were 40 provisions issued for non-compliance, including warnings, suspensions and withdrawal of qualification.
GEOGRAPHICAL BREAKDOWN PROCUREMENT IN ITALY (%)
Breakdown of procurement by critical class (%)
The product sectors (goods, services and works) are classified on four levels (A, B, C, D) in terms of criticality based on technological complexity and impact on Snam’s performance. The classes of criticality A and B represent the most critical levels.