Monitoring the suppliers’ performance

Rating index – Assessment area (%)

To guarantee the stability and efficiency of the supply chain, the Company establishes constant dialogue with suppliers, evaluates their performance over a period of time and keeps continously in check their requirements.

The performance monitoring during the execution of contracts, audits, inspection visits and assessment processes are the main instruments employed to protect the integrity of the supply chain sustainability and ensure that the expected standards of quality and efficiency are maintained.

Over the course of the year 815 items of feedback were received about the performance of 157 suppliers.

To evaluate their performance, Snam uses a rating index (IR) which takes into consideration 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. Snam may restrict, suspend or even revoke the qualification of a supplier who fails to meet the agreed standards. The possible cases could, include, for example, the failure 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 2018, 35 measures were adopted within this scope.

Suppliers Performance Evaluation (%)