While providing equal business opportunities, suppliers and subcontractors are selected from around the world, according to the principle of open competition. Saipem has developed a Vendor Management process to evaluate the reliability of vendors (both suppliers and subcontractors) in terms of their technical, financial and organizational capabilities. The Vendor Management process includes:
- a fair and structured approach to qualification,
- the compliance with laws, Saipem Code of Ethics and commercial obligations,
- the monitoring of suppliers’ performance.
Saipem Vendor qualification process is patterned on the basis of criticality and risk level of products and services. The criteria used for selecting suppliers and subcontractors not only include their capability to meet economic, financial, technical and organizational requirements, but also compliance with Saipem Sustainability, HSE Policies and standards/procedures. The requirements are verified by means of a questionnaire, additional technical documents and also by assessment visits in case of critical and important suppliers. Monitoring and control of suppliers’ performance is achieved through a valuable and constant process named Vendor Feedback process, covering every phase of the relationship with vendors, such as bids, orders management and execution, and the characteristics of the relationship, for example, punctuality, quality and behaviour. All Vendor Management activities are focused on the improvement and development of suppliers and subcontractors.
Saipem has also implemented a dedicated approach to high impact products and services through Strategic Sourcing. In order to support the global procurement process and improve its capability to find new markets and guarantee more sourcing opportunities to the Group, Saipem is strongly committed to identifying and exploring new sources of supply in emerging countries. For this purpose, new organizational structures and processes have been developed, for instance the procurement departments based in China and India, specialized in local market scouting and supporting Saipem projects all over the world, have been identified as Sourcing Centers, ensuring an interface with local business opportunities for all the purchasing activities.
For further information on Saipem Vendor Management: