Changing with suppliers4

Changing with suppliers KPI's (Graphic)

* With the exception of the 2021 target equal to <span class="nowrap">+10%</span> compared to 2020.

For Snam, suppliers represent true allies in the consolidation of core business and new business, as well as partners with whom to achieve decarbonisation objectives. The commitment to deepen and consolidate the relationship with suppliers is constant and is based on the sharing of skills and expertise, with the aim of promoting sustainability practices along the value chain.

Snam, on the strength of its experience in the use of new technologies and aware of the added value of digitalisation, in 2020 continued its activities to create a Supply Chain 4.0: a reorganisation that will affect the entire supplier base, also thanks to the use of Industry 4.0 technologies, including the Internet of Things.

Awards and recognitions related to supply chain management

As part of the activities related to Robotic Process Automation, a new process for drafting documentation to support the contract strategy was implemented during the year, which received the ‘Best Digital Innovation Process in Procurement 2020’ award from an external jury of experts in the field (IKN Italy).

Other important awards were given to Snam’s supply chain management by the jury of The Procurement Awards 2020, for aspects relating to innovation and skills development.

In this way, the digitalisation of internal processes and those supporting the relationship and communication with suppliers, has made all the phases involved in the acquisition of goods, works and services more efficient. In fact, even in the management of procurement processes, Snam aims to use forms of Intelligent Automation with the use of large databases and even more precise technologies capable of making increasingly up-to-date and accurate choices of suppliers. The ability to use big data and to carry out in-depth qualitative evaluations is the added value of this process, for which Snam has prepared itself in good time by investing in the training and specialisation of its supply chain management staff. It is precisely to them that Snam’s Supply Chain Academy activity is dedicated, with the support of Snam Institute, which in the two-year period 2019-2020 delivered over 1,300 hours of training.

Resilience in the pandemic

Building a path of growth with suppliers and valuing the skills of each one are elements that contribute to the enrichment and integrity of the supply chain, which is even more important in the current pandemic context. Snam, which has been working on this for years, has demonstrated that its supply chain is resilient, solid and able to cope with unforeseen events, which can often lead to highly unstable situations. The change-oriented vision, capable of anticipating future needs, proved essential to overcome the effects of the pandemic, especially on the financial system and business processes. In particular, the management models used for Snam’s procurement proved to be adequate and went beyond compliance with the drivers of efficiency and cost-saving, proving to be flexible in terms of timing and methods of engaging suppliers.

Moreover, in order to enable trade-off assessments between overall risks and benefits, Snam has activated an extraordinary monitoring of the economic-financial conditions of suppliers to measure their level of ‘distress’. In order to efficiently manage the emerging costs and increased burdens imposed by the health emergency restrictions on suppliers, some 78 parties (covering 200 contracts) were involved, including discussions on how to ensure health and safety in the workplace.

4) Unless otherwise specified, the data in this paragraph relate to the companies: Snam, SRG, GNL Italia, Stogit, Enura, Snam4Mobility, Cubogas.

to pagetop