Our mission is to operate in a framework of fair competition with honesty, integrity, fairness and good faith, respecting the legitimate interests of all our stakeholders, shareholders, employees, customers, suppliers and local communities.
This approach is part of a broader vision in which our company actively promotes Social Responsibility and a sustainable supply chain, integrating a focus on social and environmental issues within our strategic guidelines.
Our suppliers are an integral part of this approach and they are asked to share our Purchasing Policy, the primary goal of which is to communicate the Group's commitment to strengthening the development of solid and long-lasting relationships with our partners so that we can pursue a common goal of sustainable development together.
The core aspects of our Purchasing Policy are:

The importance of the relationship with our partners is underlined by the fact that our product is highly customized, since it is designed and engineered to the specific needs of the individual customer.
This entails active management of make-or-buy procurement strategies for every single phase of development and implementation of the naval job, while maintaining constant synergy with our suppliers in the continuous search for high value added solutions.

Approximately 80% of the finished product is made with the contribution of suppliers and we work as a de facto system integrator, taking responsibility for the shipbuilding project as a whole.
Awareness of the supply chain's strategic nature and the need to coordinate a vast and varied network of suppliers lead us to seek long-term partner relationships that are based on transparency, collaboration and mutual respect.

Supply Chain Management of Fincantieri in Italy

Development, growth and efficiency of our supply chain start immediately at the supplier selection phase, which follows a documented procedure in order to guarantee impartiality and equal opportunities for all the parties involved.
Furthermore, Fincantieri S.p.A. monitors the supply chain using a life cycle management approach to reduce the environmental and social impact of a product or service over its entire lifetime to a minimum.
In particular, sensitivity towards and respect for the environment is spread along the whole production chain, and this has led to increasing exchanges of information and documents with suppliers.
On this point, environmental information is collected during the pre-qualification phase and periodic questionnaires are sent to monitor the initiatives and strategies of the pool of suppliers that have an impact on the environment.

Supplier Qualification and Monitoring Process

Management and the continuous improvement of a pool of trusted suppliers is essential in order to achieve the goals we have set for ourselves in economic and sustainability terms.
Fincantieri recognises that the supplier base is a significant asset for the entire company, and as such it should be valued and protected.
This is why we have developed a stringent qualification and performance monitoring process for strategic suppliers, based on the evaluation of economic, technical, reputational, social and environmental aspects.
We believe that the selection of innovative and reliable suppliers, willing to build together a common success, starting from a high value-added, commitment and flexibility are the essential requirement for a lasting relationship.

Of the 823 qualified strategic suppliers at the end of 2017, 82% were subject to an evaluation, with the following results:

 

- 89% satisfactory;
- 10% with some gaps that can be resolved by themselves;
- 1% with serious issues, requiring an improvement plan or replacement.

 

We have a stringent performance monitoring process for suppliers that allows them to maintain their "qualified" status and manages any critical issues.
To this end, a continuous performance evaluation system has been implemented (in which all the relevant company departments take part) in order to guarantee that the required standards are met over time.

Specific focus is given to issues related to safety and protection at work during both the qualification and the monitoring phases.
These values are essential for the whole Group and are a priority in all company decisions, including those relating to the pool of suppliers.
Evaluation of certain fundamental aspects, such as the technical/professional suitability of the company, the regularity of contributions and remuneration of employees, and the existence of a structure dedicated to safety at work, takes place during both the pre-qualification document collection phase and the quality inspection phase at the supplier's premises, as well as during entry in our shipyards.
Fincantieri makes business integrity and the ethical and reputational aspects that accompany it a constant guideline, operating in a framework of fair competition with honesty and fairness and respecting the legitimate interests of all the actors involved.


On this point, Fincantieri is aware that corporate reputation is a strategic asset that should be valued and protected, also so as not to compromise the trust placed in it by its stakeholders. Therefore, Fincantieri uses a risk intelligence based strategy to ensure that its supply chain leans towards more extensive compliance with regard to anti-money laundering, counter-terrorism, anti-corruption and sanctions at international level.
Furthermore, in order to prevent any possible infiltration of organized crime in the contract award phase, in capital expenditure and in production activities, the Group has established a stronger cooperation with the local competent Prefectures, stipulating Legality and Transparency Protocols, which since 2017 have merged into a National Protocol.
All levels of the supply chain are asked to share this approach and to maintain business relations based on lawfulness, transparency and fairness.
Our goal is to have stable partners who are fully integrated into our vision so that we have a solid and sustainable supply chain at all levels.

Fincantieri Marine Group: supply chain

The US Government is the main customer of Fincantieri Marine Marinette (FMM) and requires high quality, high performance goods and services provided by suppliers with proven experience. In order to fulfil the objectives of Congress, the company supports small and medium enterprises in selecting its suppliers, in particular those run by women, economically and socially disadvantaged individuals, veterans, and companies that are part of the Historically Underutilized Business Zone Program. (HUB zones).

In 2017, 1,105 suppliers received a purchase order from FMM, almost 100% of which are located in the United States, with almost 52% in Wisconsin and over 51% small businesses.

An orientation course is provided to suppliers performing services in shipyards before the works begin, to verify that they meet certain insurance requirements. They also carry out shipyard safety training courses and are familiarized with the correct contact representatives within the company, in order to ensure an appropriate communication flow.

SUPPLIERS BY PRODUCT CATEGORY

  2017
PRODUCT CATEGORY NO. OF SUPPLIERS VALUE OF ORDERS ISSUED BY CATEGORY IN €
Supply 588 82.616.772
Procurement and services 378 41.884.472
Turnkey 36 27.892.039
Raw materials 92 14.098.003
Total 1.094 166.491.285

 

SUPPLIERS BY GEOGRAPHICAL AREA

  2017
COUNTRY/GEOGRAPHICAL AREA NO. OF SUPPLIERS VALUE OF ORDERS ISSUED BY COUNTRY/AREA IN €
Italy 1

867

Rest of Europe 8

3.862.187

North America 1.084

162.554.274

Asia 0

0

Oceania 0

0

South America 1

73.957

Africa 0

0

Total 1.094

166.491.285

 

The data refer to Fincantieri Marine Group

VARD Group: supply chain

Approximately 78% of VARD Group suppliers are located in Norway and another 16% in the rest of Europe.
The selection criteria used are based on the maker list, but also on supply history and previous purchasing experiences.
The most used suppliers are attributable to companies in the VARD Group, representing 53% of the total value of 2017 purchase orders.
Purchasing management is entrusted to the Alesund headquarters, while purchase plans are managed by the procurement teams of the various sites.

SUPPLIERS BY PRODUCT CATEGORY

  2017
PRODUCT CATEGORY NO. OF SUPPLIERS VALUE OF ORDERS ISSUED BY CATEGORY IN €
Supply 578 428.983.760
Procurement and services 58 289.549.817
Turnkey 383 191.811.294
Raw materials 32 7.603.520
Total 1.051 917.948.391

SUPPLIERS BY GEOGRAPHICAL AREA

  2017
COUNTRY/GEOGRAPHICAL AREA NO. OF SUPPLIERS VALUE OF ORDERS ISSUED BY COUNTRY/AREA IN €
Italy 476

419.872.443

Rest of Europe 418

371.900.116

North America 1

668.386

Asia 99

60.739.296

Oceania 0

0

South America 57

64.768.151

Africa 0

0

Total 1.051

917.948.391

 

The data refers to the VARD Group

Related Topics

Economic Responsibility

Distribution of economic value

Indirect Impact: economic satellite businesses