BBVA's relationship with its suppliers is governed by the Group's new Code of Conduct approved in 2015, by the Responsible Procurement Policy and by the Corporate standard for procurement of goods and contracting services.
The Responsible Procurement Policy is the basis for the progress made in the procurement process. Responsible criteria and clauses for complying with this policy have been introduced in both the supplier approval process and the tender documents and contracts.
During the year, the procurement and contract awarding procedures for goods and services have been reviewed in the Corporate standard for procurementof goods and contracting services”, and environmental, social and governance aspects have been added to the technical and financial requirements. The Principles Applicable to Persons Participating in the BBVA Procurement Process (IPA), which contain the same principles set out in the Code of Conduct, also apply to this standard. These Principles apply to all units involved in the procurement process in every entity in BBVA Group, and are binding on all persons involved in the BBVA Group procurement process.
BBVA has stayed in touch in 2015 with various Special Employment Centers to find out about the areas in which we could collaborate, resulting in firm contracts amounting to significant awards. The total volume of BBVA S.A. purchases from these centers over the year amounted to over 1.2 million euros.
In addition, BBVA S.A. has demonstrated its commitment to the environment by using green energy in its buildings and branches in Spain. This energy is guaranteed to come from a clean source. LEED and ISO 14001 (sustainability) and 50001 (energy efficiency) energy certifications are further proof of this commitment.
BBVA Group. Basic suppliers data
|Number of suppliers||4,598||4,321||5,238|
|Supplier turnover (million euros) (1)||8,443||7,186||7,305|
|Supplier satisfaction index (2)||81.6||81.6||n/a|
|Number of approved suppliers (3)||1,037||893||94|
n/a= not applicable.
(1) Payments made to third parties. Does not include suppliers with amounts below €100,000.
(2) Biennial survey until 2015.
(3) Data corresponding to BBVA, S.A.
The new BBVA Code of Conduct continues to set out responsible criteria for the procurement process
BBVA carries out a survey to measure the satisfaction of its suppliers. The Group's supplier satisfaction index was 81.6 points out of 100 in 2015, aligned with 2014 results.
BBVA has an approval process in place for its recurrent suppliers with significant procurement volumes. This assessment includes ten aspects:
This approval process assesses the productive, technical, financial, legal and commercial capacity required by BBVA Group to ensure compliance with the commitments contracted and checks that suppliers share the same environmental, social and governance criteria as the Group.
The sustainability aspect tells us whether suppliers are complying with their legal responsibilities (employment, data protection, etc.) and whether they promote civic responsibility, through compliance with the following aspects:
The Global Procurement System (GPS) is the global technological platform that supports every stage of the procurement process in BBVA Group (budgeting, purchasing and finance). This platform is used in Spain (11 companies), Mexico (13 companies), Peru, Colombia, Chile, Argentina and Venezuela (starting in January 2016). The incorporation of Paraguay and Uruguay is planned for 2016. The South America regional procurement organization (hub in Chile), that provides the procurement services for the region, was incorporated into this platform in 2015.
Adquira Marketplace supplier portal is integrated into GPS. This portal enables online interaction between the Group's companies and their suppliers in a collaborative environment through the electronic exchange of documents. It covers the main stages in the procurement process, from the issue of orders to the registration of invoices, including electronic invoicing, and is legally valid in Spain and Mexico.
In addition to GPS, BBVA has an electronic catalog procurement tool (SRM), which is accessible online, in order to issue decentralized procurement requests. SRM is available in Spain, Mexico and Chile and is due to be implemented in Colombia, Peru and Argentina.