Growing with our suppliers
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Growing with our suppliers

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Snam has continued the digital innovation process linked to the supply chain

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Inquiries on socio-economic effects of Snam procurement were carried out

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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, reinforcement of licenses to operate and progressive "green change" 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 2021 further accelerated the optimisation of its Supply Chain 4.0 keeping on to reorganise its 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, raising the level of efficiency, traceability and transparency of operations. 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 2021 delivered over 960 hours of training. Besides, the juries of important awards addressed to companies that most innovate their management processes and stand out for the most significant progress in the field of procurement, have recognized the results achieved by Snam and the added value brought to its supply chain: “The procurement awards 2021” awarded the first prize for innovation in purchasing.

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 2021, the actions aimed at rationalizing the number of suppliers on the Vendor List and the related reference product groups continued, seeking new and efficient synergies between suppliers already available. At the same time, the number of suppliers operating in the activities relating to the energy transition and new businesses was increased.
In addition, in the selection and qualification phase of suppliers, Snam continues to promote the participation of companies belonging to the Third Sector, such as cooperatives, associations and non-profit enterprises: at the end of 2021, the number of suppliers belonging to the Third Sector present in the Supplier List is was equal to 83.

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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. Actually, in addition to the procurement activities of the Group companies mainly connected to the core-business, supply contracts were stipulated directly by the companies most involved in the promotion of green businesses aimed at achieving the decarbonisation targets (Renovit, Snam4Environment, EcoProgetto Milano , EcoProgetto Tortona), for a total amount of 556 million euros.

Socio-economic effects of Snam procurement

Snam’s supply activity is an important driver for the activation of the national economy and employment, moving a series of economic flows that transfer wealth to the economic system of the companies in its supply chain and to the national economic system.
The impact of what is ordered is measured in terms of the added value generated in the economic system and the number of jobs sustained.
The total value of purchases from Italian companies or work carried out in Italy in 2021 was approximately 1,714 million euros (94.7% of the total ordered). These expenditures stimulated the production of final and intermediate goods and services directly by the Group’s suppliers, indirectly by the suppliers’ suppliers and in an induced manner by the companies that benefited from an increase in demand stimulated by the consumption of workers who were directly and indirectly involved in the Group’s supply chain. This production value amounts to approximately 4,023 million euros. The increase in production generated approximately 1,765 million euros in added value and supported 25,792 Annual Work Units(*). This means that for every million euros ordered by Snam, the Italian economy has seen its gross production increase by 2.35 million euros and generate national added value of 1.03 million euros, supporting approximately 15 Annual Work Units.

 

(*) Annual Work Unit (AWU) is the unit of measurement of the work provided by a worker employed full-time (40 hours per week) for the duration of a working year.
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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
03 May 2022 - 11:21 CEST