Annual Report - EDP

: performance :A considerable part of the coal and gas purchasedby EDP comes from outside Europe.18%15%COLOMBIAUSACOALORIGIN67%RUSSIAN, NORWAY AND SOUTH AFRICAIn 2012, roughly one-half of all coal purchasedby EDP was bought directly from companiesthat produce the raw material. Of the other 50%,purchased from coal traders, the greater partwas sourced from suppliers that have advancedCorporate Social Responsibility policies inplace, and have also signed up to the Bettercoalinitiative. Bettercoal is a non-profit organisationthat works towards creating a code of practicebased on continuous improvement and a set ofsocial, environmental and ethical principles thatcompanies in the supply chain are encouraged toimplement, particularly coal mining companies.EDP plans to join this initiative in 2013.In overall terms, most of the fuels purchased camefrom suppliers with ISO 14001, OHSAS 18001 andISO 9001 certifications.Examples of initiatives included in the closemonitoring of coal suppliers are visits to the mostimportant mines, participation in meetings inthe sector to get to know best practices and thefrequent use of inspectors for the observationof loading procedures, the taking of samples foranalysis and general handling of coal.3.7.3. managementand dialogueEDP has developed an Integrated SupplierManagement System (excluding fuel suppliers)using Supplier Relationship Management(SRM) tools. The adopted model is based onfive different phases: Registration, Selection,Assessment, Management and Development.This solution fosters proximity with the Group’sbusiness partners, permitting the sharing ofmethodologies and promoting closer relationsbetween both parties. The suppliers’ familiaritywith the company’s business fosters betterprocurement conditions and optimises the entiresupply process.In this context a risk analysis programme forstrategic suppliers is also being implemented,enabling EDP to identify critical or rupturesituations in time and ensure the continuity ofcontracted supplies.EDP has a system in place for the search,selection and segmentation of Suppliers(excluding fuel suppliers) – the EDP GroupSupplier Registration System (SRF). This systemenables EDP to act in a clear, transparentand efficient manner, enhancing partnershiprelationships in which both parties are winners.The SRF is based on a philosophy ofcentralisation and sharing of information in thesupplier database. The information is checked,80managed and maintained centrally, and isaccessible to the members of the community(more information at http://achilles.com/pt/Portugal/Sectores/Utilities/RePro/Solicite-oregisto/).Registered suppliers likewise benefit froma number of advantages, which include:º º equal opportunities for equivalent/differentbusiness areasº º increased business opportunitiesº º the guarantee that their clients have quickand reliable access to informationº º one single register with visibility for variouscompaniesº º no need to submit a wide range documentationin bidding/application processes or qualificationrequests.Regardless of their country of origin, suppliersare registered in a single database that is sharednot only by all EDP Group companies but also byother utilities companies around the globe thathave adhered to the system.In contrast to the previous registrationphilosophy, where registration was based merelyon segmentation by supply category, regardlessof whether a business relationship with the EDPGroup existed or not, this approach establishesa tiered differentiation system based on theannual business dealings with the EDP Group.The system is now organised into threeregistration levels; suppliers can move up ordown levels depending on their annual turnoverwith the EDP Group, as described below:I –Basic level c potential suppliers or supplierswith an annual turnover with the EDP Groupof less than EUR 10,000;II –Standard level – suppliers with an annualturnover with the EDP Group of between EUR10,000 and EUR 150,000;III –Strategic level – suppliers with an annualturnover with the EDP Group of more thanEUR 150,000.In 2012, 20 356 suppliers were registered withthe EDP Group, representing a growth of 19%in relation to 2011.REGISTRATIONbasicSupplierstandardstrategicClearance of the registrationlevel by EDP/AchillesSubmission of theregistration formRegisteredRegistrationvalidationAchillesIn order to better tailor the registration systemto the knowledge and supply chain managementneeds, EDP participated in a global workinggroup, headed by Achilles, for the evaluationand scoring of the areas of Corporate SocialResponsibility: Dialogue; Communication andA World Full Of Energy