Supplier management

The Group places significant attention to the selection and management of suppliers also as a consequence of its precise strategic choices on sustainability. If in fact the selection of suppliers is today increasingly influenced by Green Procurement (which will be widely described in the section Green Procurement in the Environment chapter) also the following phase, the management of suppliers, places a great deal of attention to topics related to sustainability.

On this front, the ENAV Group is highly demanding of its suppliers: not only does it focus on the effectiveness and efficiency of their performance, but also on the identification of the main risks of non-compliance with regulations relating to social aspects by suppliers and subcontractors.

The communication with suppliers and their involvement in these topics is also reflected in detailed agreements, through the inclusion of clauses countersigned by the supplier wherein they state that they acknowledge, accept and will comply with ENAV’s Code of Ethics and with Legislative Decree No. 231/2001, which is intended to fight all irregular work. In case of non-observance, the contract can be terminated by law.

Following the selection phase, the Group's organisational structures responsible for the supply procedures, must verify the declarations made during the tendering stage before they can award an order to the winning tenderer. This is done in addition to acquiring all documents required to prove the non-existence of the reasons for exclusion pursuant to Article 80 of Legislative Decree No. 50/2016. Subsequently, during the issuing of the Attestation of Regular Performance (ARP)/Technical Economic Approval and payment of the invoices issued, the documents are collected for the acquisition of the DURC (statement of correct fulfilment of welfare contribution obligations). Similar checks are carried out for subcontracting authorisation for the company indicated by the contractor. In particular, as a guarantee from the subcontractor, the funds are traced to the bank accounts in order to guarantee the contractors' debts with regard to them. There are also additional actions undertaken for the payments to subcontractors, such as the intervention of direct payments in favour of sub-suppliers in cases of contractor bankruptcy, as provided in the relevant regulations. Thanks to the experience acquired and given the risks identified, a number of functionalities have been developed on ENAV's information systems. This includes the Contracts Register, in order to trace information, compliance with the ERP system and to what is reported in the accounting documents and the supplier's assessment in relation to each ARP/Technical Economic Approval (for all contracts issued, irrespective of the amount). The results of the evaluations involve the possible suspension of the supplier and/or the withdrawal/termination of the contracts in effect. In particular, it is advisable to indicate the obligation to compile the non-compliance form, which indicates the violation of essential obligations (including breach of work safety regulations ex 81/08) and which traces the reporting of events of injury: from the failure to comply with essential safety obligations to the failure to comply with the regulations on occupational safety.

As regards the assignment procedures carried out by ENAV and Techno Sky (net of what will be discussed later regarding Green Procurement), these are carried out in compliance with the provisions of Legislative Decree No. 50 of April 18th 2016, the so-called Code of Public Contracts. Therefore, failure to comply with these mandatory regulations can lead to significant sanctions ranging from administrative penalties to criminal charges. It is worth remembering that ENAV is subject to the oversight of the Court of Audit, as well as to additional, and not less stringent, controls by different entities (to which Techno Sky is also subject) such as the Supervisory Body, the Board of Auditors, the Control, Risks and Related Parties Committee, the Internal Audit, the quality certification authority, etc. The corporate and reputational requirements are therefore established in tender/tender notice/market investigation stages. In general, Article 80 (of the cited Legislative Decree No. 50 of April 18th 2016, the so-called Public Contracts Code) provides that the failure to comply with this Article's requirements leads to the exclusion from the tendering process. Likewise, the technical operational requirements of potential bidders are identified and both aspects must be proven before the conclusion of the contract, through a testing on the effectiveness verification phase. Recently ENAV has also acquired a specialised and exclusive service of access to the anti-money laundering lists, listed in Legislative Decree No. 231 of November 21st 2007, aimed at the identification and prevention of offences linked to Law No. 231/2001 and subsequent amendments and modifications.

The supplier evaluation process implemented by Techno Sky differs depending on the good/service category of reference of the evaluated supplier. In particular, the supplier is assessed as follows:

  • For standardised goods and repair services it is based on the automated processing of data entered on the SAP company information system in terms of respect of delivery times and quality of supply (purchase of products with minor environmental impact- CE certification);
  • For services, jobs or professional services it is based on the recognition of user satisfaction expressed through the compilation of the evaluation form on the SAP system.

Regarding the process of monitoring the compliance of the activities performed by suppliers with specific business needs, Techno Sky uses the SAP management system which monitors the technical and economic approvals which are strictly correlated to the supplier assessments.

The Supplier assessment takes place through a periodic analysis of the operational capacity and the reliability of the supplier which considers the following elements:

  • The assessment of individual performance;
  • The monitoring of any detected "non-conformities".

The results of the evaluations involve the possible suspension of the supplier and/or the withdrawal/termination of the contracts in effect. The Purchasing Department will ultimately modify the current contractual forms with the provision of specific clauses relating to the carrying out of audits, during the contractual execution, aimed at the verification of the suppliers' possession of environmental requirements and respect for human rights.

ENAV Asia Pacific has initiated a process of supplementing its procurement procedures for protecting the company against the risks that are considered to be of greater impact, such as respect for human rights, anti-money laundering, compliance with the Group's Code of Ethics and the signing of confidentiality agreements.

On the payment of suppliers, the objective that the ENAV Group has established consists in meeting the contractually defined deadlines, subject to the verification of the regularity of all legally required documentation and in application of Legislative Decree No. 231 of October 9th 2002, which implements in Italy the Directive 2000/35/EC on the fight against late payments in commercial transactions. The Group companies pay special attention to the observance of payment terms, aware of the difficulties that delays can generate, from the financial point of view, towards their suppliers. In order to meet the needs of the suppliers, the company has concluded a factoring agreement with a financial institution which allows suppliers to submit issued invoices with recourse; in addition, payment advances may be made if properly justified.



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