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Growing with our suppliers

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Snam has activated an extraordinary monitoring of the economic-financial conditions of suppliers during pandemy

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Surveys on supplier sustainability were carried out in order to define future inolvement initiatives

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Snam performs sustainability-related controls on its suppliers

From suppliers to business partners, these are Snam’s real suppliers. Safety, transparency, attention to the community, respect for the land and reinforcement of licenses to operate are indispensable values around which Snam aims to forge responsible and trusting relationships with its suppliers.

Actually Snam, aware of the added value of digitalisation, in 2020 continued its activities to create a Supply Chain 4.0: a reorganisation that will affect the entire supplier base, also thanks to the use of Industry 4.0 technologies, including the Internet of Things.In this way, the digitalisation of internal processes and those supporting the relationship and communication with suppliers, has made all the phases involved in the acquisition of goods, works and services more efficient. In fact, even in the management of procurement processes, Snam aims to use forms of Intelligent Automation with the use of large databases and even more precise technologies capable of making increasingly up-to-date and accurate choices of suppliers.

The ability to use big data and to carry out in-depth qualitative evaluations is the added value of this process, for which Snam has prepared itself in good time by investing in the training and specialisation of its supply chain management staff. It is precisely to them that Snam's Supply Chain Academy activity is dedicated, with the support of Snam Institute, which in the two-year period 2019-2020 delivered over 1,300 hours of training.

 

Snam's suppliers

Businesses that want to provide goods, works or services to Snam Group companies do not only have to satisfy our quality, price and reliability requirements but also share our passion for innovation and our commitment to reducing social and environmental risks and impact throughout the supply chain, committing themselves to a clear and responsible relationship. Potential suppliers must undergo a rigorous and thorough qualification process, as this is the only way possible for a company to learn its current capacity and future potential.

In 2020, a rationalisation of the number of suppliers on the Vendor List (-12% compared to 2019) and of the relevant Product Groups (approximately -7% compared to 2019) was carried out, seeking new and efficient synergies between the suppliers already available. At the same time, the number of suppliers operating in energy transition and new business activities was increased, as well as suppliers operating in sectors functional to pandemic management.

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Geographic breakdown of procurement in Italy (%)

 

Procurement by goods type (%)

 
The geographical distribution refers to suppliers' administrative headquarters
The data was calculated taking into consideration the following Companies: Snam, SRG, GNL Italia, Stogit, Enura, Snam4Mobility, Cubogas.

 

The numbers of the new business companies

In the current phase of progressive decarbonisation, in the context of which Snam has strategically chosen to focus both on high-tech initiatives (innovation, research and development in support of large national and international transportation networks) and on green economy businesses (sustainable mobility, renewable gas-biomethane, hydrogen, energy efficiency), the Group has focused on creating added value, in synergy with suppliers related to more traditional and consolidated activities and with those related to product categories linked to the energy transition and Snam's new businesses; in addition, the department is defining new management models suitable for supporting new strategic development scenarios. In 2020, as regards TEP, IES Biogas, Cubogas and Snam4Environment with subsidiaries, goods and services of Euro 189 million were procured from more than 1,000 suppliers in the new business sector (mobility, biomethane, hydrogen).

Resilience in the pandemic

Building a path of growth with suppliers and valuing the skills of each one are elements that contribute to the enrichment and integrity of the supply chain, which is even more important in the current pandemic context. Snam, which has been working on this for years, has demonstrated that its supply chain is resilient, solid and able to cope with unforeseen events, which can often lead to highly unstable situations. The change-oriented vision, capable of anticipating future needs, proved essential to overcome the effects of the pandemic, especially on the financial system and business processes. In particular, the management models used for Snam's procurement proved to be adequate and went beyond compliance with the drivers of efficiency and costsaving, proving to be flexible in terms of timing and methods of engaging suppliers.
Moreover, in order to enable tradeoff assessments between overall risks and benefits, Snam has activated an extraordinary monitoring of the economic-financial conditions of suppliers to measure their level of 'distress'. In order to efficiently manage the emerging costs and increased burdens imposed by the health emergency restrictions on suppliers, some 78 parties (covering 200 contracts) were involved, including discussions on how to ensure health and safety in the workplace.

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Find out more about the dialogue between Snam and its suppliers

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updated
05 May 2021 - 08:41 CEST