How is the purchasing policy deployed within BUs? What are your big projects?
The deployment of the purchasing policy is based on a territorial & decentralized approach, the Purchasing Directors of the Business Units (BUs) are, by subsidiarity, responsible for the implementation and monitoring of purchasing governance which is articulated around 3 operational processes: manage the supplier panel, manage the categories of purchases, buy or supply.
We have embarked on a "We are ENGIE Procurement" transformation approach that aims to change the way we deliver more sustainable performance, competitiveness and profitability, in particular by developing the skills of our sector and by adapting the vocabulary and approaches to our different stakeholders and their different activities. The position of Purchasing is unique in the Group, it allows to connect suppliers, specifiers (account managers, operating managers, project managers ...) and sometimes even clients to develop new eco-systems and make emerge innovative solutions that concretely contribute to harmonious progress.
Among our major projects, in addition to managing the Purchasing component, the Group Performance Plan (50% of the net impact of the plan from Purchasing), we focus on:
- Insourcing (+ 15% in 2018, with € 1.25 billion in internal sales),
- integration synergies in Purchasing for each new acquisition,
- the development of tools and digital platforms serving buyers and specifiers to improve operational efficiency, traceability and data analysis capacity,
- strengthening the impact of Category Management on a limited number of categories of expenditure (30 at Group level) in a logic of subsidiarity and associated discipline.
How did you implement the vigilance plan and what were its initial results?
When developing the rules, training plan and self- checking actions, we worked with the Global Care Department on the integration of health and safety rules into our contracts and our tenders, and with the CSR Department on the CSR selection criteria tailored to purchasing categories. Finally, we co- run the “Purchasing and Ethics” training course with the Ethics, Compliance & Privacy Department on detecting warning signs, due diligence policy and ethics in our relationships with suppliers.
The Group’s vigilance plan is based on our management system. Its key stages are:
- analysis and prioritization of risks and opportunities by purchasing category and by country;
- implementation of a related mitigation plan (qualification and selection criteria for preferred suppliers, need for an audit, due diligence, etc.);
- integration of contractual clauses (with a penalty system in case of CSR non- compliance);
- measurement of the performance delivered by the suppliers and related improvement plans.
In 2018, the Group’s 250 preferred suppliers were assessed, and in 2019, BUs will assess their main suppliers. Periodic business reviews measure supplier performance and review the related improvement plans. In order to strengthen risk analysis and to benefit from recognized expertise, we asked EcoVadis to share its assessment of our suppliers in terms of CSR risks.
A CSR clause is mandatory in every contract with suppliers. How do you make sure of its application?
First, we rely on our internal control program to ensure that this clause is included in all Group contracts. This program analyzes the processes, evaluates the risks of dysfunction and deploys the appropriate control activities.
In addition, for the suppliers considered at risk following the risk analysis of the category, monitoring of the implementation of this CSR clause is carried out in different ways:
- via appropriate certifications provided by certifying bodies
- via on-site audits conducted directly by the Category Manager (eg audits of factories manufacturing workwear in Bangladesh),
- via external service providers who perform audits on behalf of the Category Manager,
- For suppliers located in the Asia zone, via our supplier quality assurance team integrated into the purchasing department of the China BU