B:SM manages 11 lines of business. In order to be able to run all of them, we work with different suppliers that facilitate the supply of products, services and works. As a public municipal company, it is part of the definition of ‘public sector’ as defined by pertinent regulations on the type of relations that we must maintain with our suppliers.
At B:SM, the company has a target and commitment to pay our suppliers within 30 days of the invoice reception date. The Provider portal provides tools to make their commercial relations with B:SM more efficient.
Personalised attention, the most valued by our suppliers
Actions in 2015 were established by different company areas and these challenges were done:
Integrate even further the procurement area within the internal work flow of Legal Advisory Services. A change in this area’s management responsibility became the most efficient way to make this major integration more evident, adding the firmer connection of legal processes and purchases, development and even, jointly, a management application for general procurement, work clothes in particular and controls for minor procurement.
Design and implement a new warning system to notify divisions on the situation of late and non-payments. The annual average of monthly payments to suppliers was strengthened, without exceeding 30 calendar days. At present the average is 27.5 days.
Consolidate net default spending and cash differences, less than 0.1% of turnover.
Create a system to analyse suppliers’ materiality.
ANALYSIS OF SUPPLIERS’ MATERIALITY
A work team comprised of people from different departments and with different relations with company suppliers analysed this stakeholder. The objective was firstly to identify them and, then, determine the method for attracting their interest.
This has been one of the stakeholders set out in the strategic project ‘Focusing CSR on Stakeholders: Materiality Analysis'.
Of a total of some 1200 suppliers, we focused on those meeting criticality criteria established by the team. Thanks to the contributions of these critical suppliers to B:SM, we achieved an average supplier satisfaction of 8.56, with a top score of 9.23 for correct personalised service, and a minimum score of 7.71 for collaboration with the third sector.
With regard to importance, the average is 8.62, a fact that shows us that we have selected topics of interest to suppliers. The most important is order clarity and the information they contain, with a score of 8.92. Making payments within a 30-day period from the invoice payment date received the lowest score on the importance scale, at 8.15.
CSR topics are those that our providers are most unaware of, especially our work with the third sector and equality and decent job practices. In this report, we expand on this information in the section on responsible purchases and procurement.
During 2016 we pose ourselves the challenge of consolidating the working group to analyse suppliers’ materiality.
The figures below contain several indicators that set out the contracts awarded to the company in 2015, their amount and type. To read further and more in-depth information on the tenders awarded, please visit the Transparency portal.