Supply chain monitoring

Snam monitors suppliers’ performance during the contract’s execution phase, through feedback and inspection visits. In 2017, Snam collected 854 feedback documents, referring to 156 suppliers.

To evaluate their performance, the company uses a rating index (IR) that evaluates the compliance with technical contractual requirements (Quality), the health-safety-environment (HSE) requirements, the agreed delivery times (Punctuality), the setting up of a good relationship with the customer for the entire duration of the contract (Behaviour). The assessment is periodically communicated to the suppliers in the form of an analytical assessment.

In 2017, for the HSE activities, new monitoring indicators (KPIs) were prepared with the remit of assessing the performance of each contract issued for works, services and/or goods involving on-site installation. The KPIs consider: accidents, the employees’ management of contractors and subcontractors and the safety and environmental protection documentation management. These new KPIs represent the 30% of the new rating index.

The attention the company pays, both in the selection and control phases, has led to a steady improvement in performance of the suppliers over the last three years.

Supplier performance assessment (%)

Supplier performance assessment (%) (Bar chart)

Snam may restrict, suspend or even revoke the qualification of a supplier who fails to meet the agreed standards. The possible cases could include, failing to meet technical-organisational requirements, negative performance evaluation for it or its subcontractors and a non-compliance with the provisions about social security contribution regularity and with the rules laid out in the Snam Code of Ethics. During 2017, 20 measures were adopted within this scope.

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The Snam Portal for daily dialogue with suppliers

The portal is the web platform through which existing and potential suppliers get in touch with Snam. On-line since 2013, the portal contains documents, insights, best practices, and updates on processes and procedures that govern the procurement status and activities. All registered suppliers have a special reserved area, containing information about the commodity sectors for which they are qualified, the contracts running, and their performance in terms of workplace safety. At the end of 2017, the number of registered suppliers in the portal amounted to more than 1,900 (+5% compared to 2016). Starting from January 2018, Snam added a new feature dedicated to a performance certification that will allow suppliers to more easily and promptly know the best time to issue invoices for the goods, services or works they provided to Snam.

The 65,598 SAP documents loaded in 2017 (+16% compared to the previous year) prove that the Suppliers Portal is a living site to interact with Snam, accessed more and more every day by its users

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