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Growing with our suppliers

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Socio-economic impacts of the procurement in Italy analyzed in 2019: 1.7 jobs overall supported per € 100,000 of Snam's procurement

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A survey on supplier sustainability was carried out by sending a questionnaire to over 2,000 companies

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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.

The meetings annually organized by Snam (the focus on potential of hydrogen as a carrier of clean energy in the decarbonisation process in "The Hydrogen Challenge - 2019 Global ESG Conference ”, the insigths about growth and innovation shared during Partners' Day in 2018, the Safety and the environment in contracting activities in 2017, the Environment and innovation, a challenge for everyone in 2016, the Quality and transparency in relations between the Company and suppliers workshop in 2015, the Responsible Relationship between the Company and Supply Chain workshop in 2014, the Sharing views to prevent and improve workshop in 2013, the My safety is your safety workshop in 2012 and the Suppliers’ Day for Sustainability workshop in 2011) provide opportunities to meet and strengthen relationships with Snam’s business partners based on knowledge sharing: sharing best operating practices is a key element of the process to continuously improve the relationship between the principal and its suppliers and sharing was the key word at the base of the Suppliers Portal project.


Moreover, increasing the wealth of knowledge and working together to achieve mutual growth creates value for suppliers and provides the company with greater reliability and competitiveness, while also generating healthy business development for the national economy. Actually for Snam, growing with suppliers means to share responsibly values and behaviours contributing to the relationship continuous improvement towards combined goals. 

 

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 order to ensure that the list of approved suppliers is adequate to meet current and future procurement requirements, Snam constantly conducts market intelligence analyses and scouts for new suppliers: in particular, during the year the number of spontaneous applications received from aspiring suppliers it was 980, of these, about 260 were contacted companies related to about 70 different product areas, and ready for qualification 110 new applications.

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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 S.p.A, Snam Rete Gas S.p.A, GNL Italia S.p.A. S.p.A, Stogit S.p.A and Snam 4 Mobility S.p.A..

 

The numbers of the new business companies

In 2019 as far as IES Biogas, TEP Energy Solutions and CUBOGAS were concerned, a total of 1,012 suppliers were qualifi ed, 918 of which with at least one contract out of a total of 1,031 contracts issued. 891 of total suppliers were classifi ed as small and medium sized enterprises (SMEs).

The social and economic impacts of procurement in Italy in 2019

Snam generates wealth from the direct expenses incurred in different sector categories. The impact of procurement decisions can be measured in terms of the number of people employed, the value of production and added value, generated by the purchase of goods and services along the first level of the supply chain (direct impacts) and in sectors activated by first level suppliers (indirect impact).
In addition, the wealth introduced into the economic system through the final consumption of employees, activated directly and indirectly by acquisitions, generates further employment and added value.

From a geographical perspective, Snam suppliers are distributed throughout Italy, concentrated in Lombardy (35%) and Emilia-Romagna (17%). 

The total value of acquisitions made by Snam nationally in 2019 was equal to around €1,300 million, more than 83% of total procurement. This generated:

  • around €3,000 million in value of production, from the sum of the value generated along the supply chain to create the goods and services and the value created in an induced manner, namely the wealth produced by the final consumption of employees along the entire supply chain;
  • around €1,300 million of added value (contribution to the Gross Domestic Product of Italy);
  • more than 20 thousand full time external jobs for a year (employment impact).

 


The data was calculated taking into consideration the following Companies: Snam S.p.A, Snam Rete Gas S.p.A, GNL Italia S.p.A. S.p.A, Stogit S.p.A and Snam 4 Mobility S.p.A..
The data reported are the result of a specific study conducted with the collaboration of a specialist company
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Find out more about the dialogue between Snam and its suppliers

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Learn about how Snam addresses the issue of safety with its suppliers 

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Find out what generating value means for Snam

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updated
30 June 2020 - 16:54 CEST