4.2 Supplier relationship management
Purchase activities during the reported period were regulated by the PAOPublic Joint-Stock Company Rosseti Uniform Purchase Standard(95).
Principles for building-up purchase activities of the Company:
Reasonable use of special techniques to enhance the effects of market laws in each case of purchase.
Application of compulsory procedures to each purchase case over a specified value (also applicable to smaller purchases, if deemed required), that imply:
- market analysis and planning of demand;
- purchase transparency; equality of rights, justice, zero discrimination or unwarranted competitiveness restrictions towards participants;
- onest and reasonable selection of the most preferable offers after thorough analysis of benefits and expenses (primarily, price and quality of produce);
- target and efficient expenditures to acquire goods and services and measures aimed at cost-cutting;
- unrestricted access to procedures by setting immeasurable requirements for a bidder.
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).
Compliance with corporate unity of procurement rules.
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.
In 2018, the Company conducted 3,451 purchases worth RUB 27,007,917.532 thousand (plus VAT), namely:
Purchase type | Purchases | Purchase value | ||
pcs | % of total purchases | RUBruble thousand, plus VATvalue-added tax | % of total value | |
Open tender | 233 | 6.752 | 13,332,840.067 | 49.366 |
Open auction | 13 | 0.376 | 3,667,035.000 | 13.578 |
Open request for proposals | 739 | 21.414 | 2,904,981.680 | 10.756 |
Open vendor request | 324 | 9.389 | 280,909.971 | 1.040 |
Vendor quotations after open competitive procedures | 1,566 | 45.378 | 4,113,247.772 | 15.230 |
Single-vendor purchase | 234 | 6.781 | 1,455,182.032 | 5.388 |
Purchases from sellers | 4 | 0.116 | 310,548.786 | 1.150 |
Open tender for the right to conclude framework agreements | 82 | 2.376 | 0 | 0 |
Single-vendor purchases after failed tenders | 256 | 7.418 | 943,172.224 | 3.492 |
Purchase type | Purchases | Purchase value | ||
pcs | % of total purchases | RUBruble thousand, plus VATvalue-added tax | % of total value | |
Open tender | 233 | 6.752 | 13,332,840.067 | 49.366 |
Open auction | 13 | 0.376 | 3,667,035.000 | 13.578 |
Open request for proposals | 739 | 21.414 | 2,904,981.680 | 10.756 |
Open vendor request | 324 | 9.389 | 280,909.971 | 1.040 |
Vendor quotations after open competitive procedures | 1,566 | 45.378 | 4,113,247.772 | 15.230 |
Single-vendor purchase | 234 | 6.781 | 1,455,182.032 | 5.388 |
Purchases from sellers | 4 | 0.116 | 310,548.786 | 1.150 |
Open tender for the right to conclude framework agreements | 82 | 2.376 | 0 | 0 |
Single-vendor purchases after failed tenders | 256 | 7.418 | 943,172.224 | 3.492 |
There were 3,213 e-commerce procurement procedures worth RUBruble 25,242,186.713 thousand plus VATvalue-added tax (100% of total purchases and 100% of total value, net of single-vendor purchases and purchases from sellers). The economic effect from the purchases amounted to RUBruble 1,122,548.649 thousand plus VATvalue-added tax or 4.257% of the announced price targets. Open purchases (open tender, open request for proposals, competitive dialogue, close requests for prices after open competitive dialogue) contributed 93.46% to the total purchase value.
Purchases from small-and medium-size businesses totaled RUBruble 16,183,688.477 thousand plus VATvalue-added tax (3,207 purchases) or 71.801% of the total value and 96.248% of the total purchases (comprising purchases that are not taken into account when calculating the annual total value).
SMEsmall and medium enterprises purchases amounted to RUBruble 14,044,701.276 thousand plus VATvalue-added tax (2,889 purchases) or 62.311% of the total value and 86.704% 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 Innovation Development Program), comprising designing, installation, precommissioning services and implementation, reached RUBruble 262.6 million in 2017, corresponding with the cost target — 3.55% of actual investment program costs, and RUBruble 343.5 million in 2018 (expectance), corresponding with the cost target — 4.0% 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 etpelectronic trading platform.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 ETPelectronic trading platform without intermediaries;
- Additional requests for documents, required from participants, via ETPelectronic trading platform;
- Conduct of the “Open Doors Day” events for suppliers and potential participants of procurements on procurement-related issues as a part of the “Russian Entrepreneurship Day” event;
- Workshops for prospective contractors to explain requirements of tender documentation and filing procedure;
- Pre-contract negotiations;
- Repeated rebiddings.