Supplier relationship management
Purchase activities during the reported period were regulated by the Uniform Purchase Standard[97]. The Company adheres to the following principles in building-up its purchase activities:
| Principle 1: | Reasonable use of special techniques to enhance the effects of market laws in each case of purchase. |
| Principle 2: |
Application of compulsory procedures to each purchase case over a specified value (also applicable to smaller purchases, if deemed required), that imply:
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| Principle 3: | Systemic approach, comprising regulatory environment, prescribed setup of purchase administration and oversight, trained employees, smooth-running purchase infrastructure (information support, e-commerce means, certification, professional advisors). |
| Principle 4: | Compliance with corporate unity of procurement rules. |
| Principle 5: | Oversight of authorities and liability of purchasing employees. |
The Uniform Purchase Standard describes the following purchase types: tender, auction, request for proposals, vendor quotations, ordinary purchase, small-size purchase and single-vendor purchase, vendor tender participation purchase.
During 2017 the Company conducted 3,036 purchases worth RUB 20,837,529.78 thousand (net of VAT), namely:
There were 2,765 e-commerce procurement procedures worth RUB 18,813,063.467 thousand net of VAT (100% of total purchases and 100% of total value, net of single-vendor purchases and purchases from sellers).
Annual economic effect from the purchases amounted to RUB 1,253,462.85 thousand net of VAT or 5.67% of the announced price targets. Open purchases (open tender, open request for proposals, competitive dialogue, close requests for prices after open competitive dialogue) contributed 90.43% to the total purchase value.
Purchases from small-and medium-size businesses totaled RUB 14,492,976.34 thousand net of VAT (2,737 purchases) or 83.022% of the total value and 95.23% of the total purchases (comprising purchases that are not taken into account when calculating the annual total value). SME purchases amounted to RUB 12,159,505.981 thousand net of VAT (2,383 purchases) or 69.65% of the total value and 82.9% of the total purchases (comprising purchases that are not taken into account when calculating the annual total value).
The total innovation-related expenses of the Company (technologies, solutions, goods, works and services, stipulated by the Innovative Development Program), comprising designing, installation, precommissioning services and implementation, reached RUB 446.5 million in 2016 and RUB 262.6 million in 2017, the latter corresponding with the cost target - 3.55% of actual investment program costs.
The following activities are enforced to enhance economic metrics, improve and promote purchase transparency:
- Use of electronic trading platforms (b2b-energo.ru and etp.rosseti.ru) to conduct max portion of purchases;
- Revisions of specifications in terms of elimination of unnecessary requirements to procurement participants;
- Negotiations with manufacturers to invite them to apply on the ETP without intermediaries;
- Additional requests for documents, required from participants, via ETP;
- Meetings of a special advisory body to enforce efficiency of SME purchases, conducted by OAO IDGC of Urals;
- Workshops for prospective contractors to explain requirements of tender documentation and filing procedure;
- Pre-contract negotiations;
- Repeated rebiddings.