Contractual tools

Ansaldo STS uses various supporting contracts, depending on the goods and services purchased from a given supplier.

For the product categories relating to basic services, such as ICT (Information & Communication Technology), the supply of energy, global services and logistics (outsourcing of warehouses and transport contracts), Ansaldo STS uses framework agreements.

For standard materials and services, all initiatives favouring long-term arrangements are preferred (framework agreements, partnerships, memoranda of understanding, etc.) with vetted suppliers, and periodic controls on the suppliers’ processes are performed, in addition to scrupulous checks of supplies to monitor suppliers’ ethical conduct, adequacy, reliability and timeliness.

For project-specific materials and services, Ansaldo STS uses purchase orders. The standard order includes a summary of the general supply terms, legal requirements – with specific reference to the protection of workers and the protection of personal data – and a notice of compliance with the Code of Ethics.

The order includes a description of the characteristics and requirements, quantities and delivery times for the materials and services, and may also refer to specific documents clarifying the technical specifications for more complex devices.

For turnkey packages and contracts, Ansaldo STS agrees ad hoc contracts whereby the contractors undertake, through their organisation, using the necessary means and with management at their own risk, the operation or provision of the relevant plant or service.

Furthermore, all contractual documentation is attached to the contract. This documentation normally consists of the main contract (the contract agreed by Ansaldo STS with the customer), the technical documents defining the scope of the work in detail, detailed project plans, Ansaldo STS’s Code of Ethics and legally-required documents (safety and coordination plan and facsimile of workers’ protection statements), etc.

MONITORING ACTIVITIES

Suppliers are constantly monitored through meetings or communications between them and the Ansaldo STS departments with which they operate (Procurement, PM, Engineering, Quality and Supply Chain Quality, Logistics and Construction). At least once a year, personnel working with suppliers participate in a vendor rating process that takes into account the suppliers’ conduct and performance vis-à-vis the supplies ordered, in order to update the suppliers’ assessment and establish whether they will remain in the list of Ansaldo STS suppliers. Scores are given in four main areas: Quality, Timeliness, Flexibility and Charges. This monitoring system is applied on a continuous basis only to suppliers of strategic materials, and the results are assessed each quarter. The parameters considered are:

  • Price (calculated as the variation in the cost of the product);
  • Quality (calculated as the percentage of faults);
  • On-time delivery.

The global performance of suppliers remained high, with only 10 suppliers receiving unsatisfactory ratings.

 

ACE PROJECT

In 2017, Ansaldo STS continued to strive for the technical and commercial optimisation of external costs, carrying forward the inter-departmental ACE project (formerly the V2A-New Road project launched in 2014). A few macro categories of costs were considered strategic as part of this project. For each macro category, international and inter-departmental teams were identified to evaluate and implement specific ways of increasing efficiency in the medium and long-term. The performance level achieved is in line with the targets.