sustainable procurement

Procurement Goals and Key Indicators

The Procurement Function operates to strengthen synergies, economies of scale and improve negotiation and contracting models, with the aim of maximizing the total value generated in the acquisition of goods and services.

The goals of the Procurement Function are:

  1. Satisfy the needs of goods and services of companies of the EDP Group in terms of time, quality and efficiency;
  2. Promote competition between suppliers to obtain better quality and price conditions;
  3. The harmonization and simplification of procedures associated with the EDP Group market consultation processes;
  4. The development of actions to promote the sharing of best procurement practices in the EDP Group;
  5. Continued knowledge of the good practices of the markets that provide ongoing contributions to the evolution, development and standardization of technical specifications;
  6. The contribution to the growth and profitability of the EDP Group by promoting initiatives for the development and continuous improvement of the supply chain;
  7. The systematic monitoring of the performance and level of risk of suppliers;
  8. Contribution to the dissemination and implementation of the EDP Group sustainability policy in the acquisition of goods and services.

Sustainability objectives of the Procurement Function are developed through the following goals:

  1. Reduce systematically occupational accidents of contractors and service providers;
  2. Protect Human Rights in the supply chain, according to Ruggie methodology - Global Compact;
  3. Audit contractors and service providers with sustainability risks (ESG);
  4. Evaluate critical suppliers through sustainability criteria (ESG);
  5. Ensure environmental, occupational health and safety certifications from suppliers exposed to high risks.

Procurement Function Performance Assessment

The performance assessment process consists of the definition of relevant KPIs for monitoring various aspects of the activity, setting targets for each KPI, monitoring performance and, if necessary, defining corrective measures to achieve the objectives set.

Evaluation Process

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KPI System Definition / Review
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Develop a performance management system in line with the procurement strategy and defined priorities.

Definition of annual objectives
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Agree with objective businesses and measurable KPIs aligned with the priorities of the purchasing function.

Performance evaluation
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Review and give visibility to the performance of purchases in the different organizational structures.

Definition of corrective measures
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Minimize significant deviations and/or significant implementation risks with specific corrective measures to ensure the ultimate goal.

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