Sustatainability report 2020 -1 1
PURCHASE OF PRODUCTS AND SERVICES / SUPPLIER CHAI
N - STRATEGIC PURCHASES Strategic category-driven purchasing works with procurement and supplier development in product areas such as accessories, property management, mechanical equipment, services, direct and indirect materials. Together with strategically selected suppliers, we work with the entire supply chain to achieve our KPIs with the least possible impact on health and the environment. The long-term collaboration with selected suppliers is central to meeting the requirements set by the Group and the outside world. GOAL The goal for the year has been to nominate suppliers in all procurements within defined categories based on a sustainability perspective grounded in health and environment, personnel and work environment, code of conduct and industry-specific standards for the same. RESULTS With the task of developing the procurement process based on category-driven purchasing, the department has defined savings and quality goals within each area. During the year, the focus has been on property management and new construction and procurements where supplier assessments are updated with industry-specific requirements. • An extended supplier assessment with specific requirements has been sent out to suppliers inproperty management, workshop operations and cleaning services. • In this year's focus areas, the number of suppliers who did not meet the set supplier requirements was phased out and the number of environmentally certified suppliers increased by 58%. • Contractual fidelity has increased and is 57-98% for elaborated categories • KPIs for 2021 have been defined as new system support provides the opportunity for clearer follow-up ANALYSIS In combination with set sustainability requirements, the savings targets in each procurement have also been reached or exceeded the forecast by 10-15%. During the year, improvement work was started that will result in a digitized and streamlined purchasing process. The project will be implemented in 2021. Digitization in purchasing reduces internal administration, provides increased transparency regarding evaluation and follow-up of suppliers, agreements, KPIs and savings for the Group. In order to achieve the best possible synergy, most of the companies in the Group must be incorporated into a common analysis tool. Analysis and procurement in categories such as recond, superstructure and external work are planned for 2021. 26 26 I.A. HEDIN BIL AB / SUSTAINABILITY REPORT / 2020