Ferrovial considers its supply chain an essential stakeholder in the development of its business. Both sides seek mutual benefit by joining forces in order to offer customers higher quality services, while guaranteeing compliance with the Principles of the Global Compact and respect for the environment.
Ferrovial aims to establish long-term relations with its suppliers as far as possible. It encourages greater communication and collaboration with its suppliers and subcontractors.
In 2012 a procedure was introduced to establish the criteria for classifying suppliers and identifying those of high risk according to Corporate Responsibility criteria. It is based on the Principles of the Global Compact, Ferrovial's Corporate Responsibility Policy, and the FTSE4Good Supply Chain standards.
| Supply Chain | 2012 | 2011 | 2010 | Var 11-10 |
|---|---|---|---|---|
| Number of suppliers* | 57,458 | 61,354 | 60,911 | -6% |
| Suppliers evaluated | 8,402 | 8,415 | 9,876 | 0.15% |
| Suppliers rejected | 773 | 685 | 735 | 13% |
| Supplier incidents | 508 | 607 | 303 | -18% |
| *T his figure has been obtained by using country-specific revenue data, so there are suppliers that have been counted more than once, although the impact of this is very limited. | ||||
Profile of Ferrovial suppliers
In 2012 Ferrovial had dealings with 57,458 suppliers, including not only suppliers, but also leasers and subcontractors. It is worth highlighting the fact that most Ferrovial suppliers belong to OECD countries, so they are considered low-risk in terms of Human Rights violations and compliance with labor and environmental regulations. At the same time, the sectors in which Ferrovial operates through its different divisions are related to activities in which there are no significant risks in the supply chain, according to the criteria of the aforementioned institutions.
By geographical area, 56% of all suppliers are contracted in Spain, 21% in Poland, 10% in the United Kingdom and 6% in the United States. Local suppliers represent the majority in all the markets in which Ferrovial operates.
Ferrovial's different businesses promote the use of local suppliers, and the number of local suppliers used in each country is 94% of the total on average.
However, given that the company operates worldwide, in the case of the most important purchases prices are checked internationally to take advantage of the competitiveness offered by other markets around the world.
Management of the supply chain is one of the basic aspects of Ferrovial's environmental management in some business areas, such as Construction and Services, where the level of subcontracting can be significant and the sustainability of many projects depends largely on the performance that the company can demand from suppliers and contractors.
Global Procurement Committee
A new corporate-level committee called the Global Procurement Committee, was created in 2011. Its aim is to ensure the continued coordination, monitoring and control of global procurement activity in Ferrovial, in order to:
- Take advantage of synergies between businesses.
- Share good practices.
- Improve the global procurement function.
- Increase mutual knowledge.
The committee is headed up by Ferrovial's CIO, and is composed of all the purchasing managers of the different business divisions. It is responsible for approving procedures, guides and recommendations on purchasing in the company.
A manager is appointed for each purchasing project, making it easer to identify the synergies in the group and use volume aggregation in purchasing practices, thus saving costs. The Global Procurement Committee meets every four months. It also has other objectives, such as promoting studies of Best Practices within the industry, and participating in workshops and conferences with experts.
