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.

WHICH OBJECTIVES DO WE HAVE ON THIS TOPIC?

Procurement activities: 2018-2022 Sustainability Plan objectives and targets

Commitments Objectives Description/ Target Benefits Timetable

Promotion of a responsible and sustainable supply chain based on long-lasting relationships founded on integrity, transparency and respect

Code of Ethics for suppliers

Draft a document containing a set of rules, principles and conduct in terms of sustainable procurement, in compliance with international standards and best practices

Develop a sustainable supply chain, improve positioning on the market and image.

Guarantee coverage of risks associated with sustainability

2019

 

Organise meetings and opportunities for dialogue with suppliers as well as training on sustainability issues

Send a questionnaire on sustainability issues (and organise meetings) to suppliers identified as priority/strategic

 

Send the questionnaire to 100% of strategic suppliers

Increase engagement with suppliers in order to identify best practices and common initiatives on sustainability issues

2019

 

Deliver a training course on sustainability and responsible procurement principles to employees who interact directly with suppliers

Develop an e-learning training module on sustainable procurement for employees who interact directly with suppliers in Italy

 

100% of buyers

Raise awareness and train staff on sustainability issues in order to improve relations with suppliers on these specific topics

2022

Human Rights: 2018-2022 Sustainability Plan objectives and targets

Commitments Objectives Description/ Target Benefits Timetable

Respect for human rights through the adoption of policies and creation of programmes to promote diversity and inclusion within the Group

Annual audits to assess and monitor the most critical suppliers in terms of human rights, health and safety and the environment (Second Party Audit)

Conduct annual audits - tool for an informed management of the supply chain

 

35 audits per year

Ensure that the level of compliance is aligned with Fincantieri's standards and observance of a sustainable supply chain

2019

Supply Chain Management of Fincantieri in Italy

Suppliers by product category

  No. OF SUPPLIERS  VALUE OF ORDERS ISSUED
BY CATEGORY IN THOUSANDS OF €
PRODUCT CATEGORY 2017 2018 2017 2018
Turnkey 391 300 2,754,114 1,663,864
Supply 2,940 2,524 1,264,615 1,334,825
Contracts 294 331 402,096 439,691
Services 1,522 2,324 337,227 425,427
Investments 364 333 71,816 183,488
Engineering 113 64 35,851 38,610
Total 5,624 5,876 4,865,719* 4,085,905**

Suppliers by geographical area

  No. OF SUPPLIERS VALUE OF ORDERS ISSUED
BY CATEGORY IN THOUSANDS OF €
COUNTRY/GEOGRAPHICAL AREA 2017 2018 2017 2018
Italy 4,869 4,965 4,156,268 3,257,747
Rest of Europe 624 826 637,697 697,283
North America 92 25 56,098 786
Asia 30 40 12,914 2,075
Oceania 5 7 2,251 127,996
South America 2 8 376 4
Africa 2 5 115 14
Total 5,624 5,876 4,865,719* 4,085,905**

 

* Intercompany Value 2017: 469,245 thousands of euros.
** Intercompany Value 2018: 415,169 thousands of euros.
The data refer to Fincantieri S.p.A. and to the Italian subsidiaries.

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 744 qualified strategic suppliers at the end of 2018, 96% were subject to an evaluation, with the following results:

 

- 91% satisfactory;
- 8% 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 2018, 889 suppliers received a purchase order from FMM, almost 100% of which are located in the United States, with almost 30% in Wisconsin and over 61% small businesses.

 

The purchase process is defined through various procedures that describe all the steps that must be followed to issue a purchase order according to the needs of FMM. Suppliers are selected according to various criteria, starting from their experience in the marine sector and their observance of US law in social and environmental areas.

 

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

  2018
PRODUCT CATEGORY NO. OF SUPPLIERS VALUE OF ORDERS ISSUED BY CATEGORY IN THOUSANDS OF €
Turnkey 61 37,811
Supply 518 80,004
Contracts 194 53,656
Services 70 2,449
Investments 28 4,614
Engineering 18 1,555
Total 889 180,089

SUPPLIERS BY GEOGRAPHICAL AREA

  2018
COUNTRY/GEOGRAPHICAL AREA NO. OF SUPPLIERS VALUE OF ORDERS ISSUED BY COUNTRY/AREA IN THOUSANDS OF €
Italy 0

0

Rest of Europe 8

644

North America 880

179,430

Asia 1

15

Oceania 0

0

South America 0

0

Africa 0

0

Total 889

180,089

 

The data refer to Fincantieri Marine Group.

VARD Group: supply chain

Approximately 29% of VARD group suppliers are located in Norway and another 49% in the rest of Europe. The remaining 22% is distributed mainly between South America and Asia.
The selection criteria used are based on the maker list, but also on supply history and previous purchasing experiences.

During the supplier selection process, preferential requirements include possession of certification concerning health, safety, anti-corruption and the environment.
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

  2018
PRODUCT CATEGORY NO. OF SUPPLIERS VALUE OF ORDERS ISSUED BY CATEGORY IN THOUSANDS OF €
Turnkey 262 546,680
Supply 3,384 451,644
Contracts 318 155,532
Services 2,476 122,754
Investments 148 14,273
Engineering 69 62,381
Total 6,657 1,353,263*

SUPPLIERS BY GEOGRAPHICAL AREA

  2018
COUNTRY/GEOGRAPHICAL AREA NO. OF SUPPLIERS VALUE OF ORDERS ISSUED BY COUNTRY/AREA IN THOUSANDS OF €
Norway 1,940

632,229

Rest of Europe 3,272

604,898

North America 17

4,002

Asia 408

73,967

Oceania 7

129

South America 1,013

38,038

Africa 0

0

Total 6,657

1,353,263*

 

* Intra-group value 2018: estimated in approx. 427,600 thousands of euros.
The data refer to the VARD group.

Related Topics

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Economic value for stakeholders

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Business Model

Suppliers