At Celsia we develop close relationships with suppliers with the aim of managing and optimizing the supply chain of goods and services and their information flows, integrating sustainable models. We are committed to mitigating impacts on activities, which is why we have been implementing strategies for risk management and opportunities related to the supply chain, through prequalification and pre-selection, objective selection, performance evaluation, inspection, monitoring and implementation of action plans to our suppliers.
The supply chain considers it essential to work on the following priorities:
- Ensuring the service, through the strengthening of interactions with suppliers, in order to improve customer satisfaction. Likewise, we must have a flexible chain that is molded to the needs and challenges of the different business models
- Continue our evaluation and feedback process with suppliers in order to further develop their abilities and our relationship.
- Risk management of the supply chain trying to anticipate potential materialization of significant risks and improving trend identification.
- Continue improving simplification and digitalization to have a more efficient and competitive supply chain.
- Develop new skills and competences to address the challenges and opportunities that arise from new business models and global trends.
The Supply area has the following significant supporting elements for its process
- Strategic Plan: It is the strategic and tactical planning which leads to initiatives and actions that the area will work on during a specific period.
- ESG Objectives: It is an important guide to set the intended objectives and to agree on where is the work heading to, knowing the framework in which each one should be developed.
- Sustainability, Indicators / KPI´s: Designed to have sustainable standards which evaluate, estimate or demonstrate the progress of variables with respect to established goals of the supply chain.
Sustainable Supply Chain
Our sustainable chain operates within the regulations of the sector and the internal requirements of the company, but also takes into account the objectives we are implementing, following an analysis of trends, lessons learned and a good strategy.
- Integral Risk management in our supply chain: Integral supplier risk management helps us mitigate supply chain risks, identify opportunities and develop relationship models that are adapted to the reality of the value chain. The tactic to carry this out is the development of a supplier segmentation model based on risks for the organization based on a comprehensive risk analysis.
- Management and strengthening of Occupational Health and Safety issues in our supply chain: The management and strengthening of Occupational Health and Safety issues in the supply chain allows us to mitigate risks to the business and protect the life and health of people linked to our value chain. In fact, we have developed the strategy I choose to take care of myself (YEC) to turn Occupational Health and Safety into a value both in our organization and in our value chain. We will also apply the contractor management model in the different stages of the supply chain: pre-contractual, contractual and post-contractual that will allow us to work on monitoring and feedback on the assessment and on the development of this group of stakeholders, which is one of our five priorities in the management of the supply chain.
For Celsia, sustainability high - risks are those risks that can affect the development and attainment of the company's strategic objectives. These include ESG threats, weaknesses and specific situations to which the company is exposed to. Otherwise, a lack of a risk-oriented supply chain can limit the ability of Celsia to deliver sustainable and reliable long-term benefits to all stakeholders.
It is important to know the impact that risk management has on the entire strategy, for which a good planning and preparation of risk prevention schemes is necessary to find possible weak points in our supply chain. We must also ensure that risk management is carried out through different sources of control:
- Knowing the integral and updated information of the suppliers
- Prequalifying suppliers in the pre-contractual stage
- Validating the information of the suppliers in restrictive lists
- Evaluating suppliers during the execution of contracts
- Making relationship visits to suppliers
In the action plans, the main opportunities for improvement are identified, both in terms of effectiveness and efficiency, with the availability of tools such as feedback and an adequate follow-up to the achievement of results.
You may find information about our suppliers’ management in our Integrated Report 2019 and in the Sustainable Supply Chain