Suppliers
Telecom Italia Media updates its Sustainability reporting Consolidated Annual and First Half Reports, addressing said issues in a dedicated section.
Telecom Italia Media guarantees its internal clients and external stakeholders that the procurement process is aimed at the acquisition of products and services under the best possible market conditions, while also observing the prerequisites of quality, safety and respect for the environment. In order to achieve this goal, it draws on the management and coordination provided by Telecom Italia to all Group companies, which also include the criteria for approving suppliers, rating vendors and acting transparently in dealings with suppliers.
› The qualification process
The qualification can be of three types, each preliminary to the next:
- basic (turnover, safety and civil liability, respect for environmental policies, etc.);
- operating and financial (examination of financial statements with consequent evaluation of the specific ratios);
- technical and organizational (effective capacity to produce/supply the product/performance/service).
During the qualification process, suppliers are also asked to commit to principles related to human rights, labor, and the environment contained in the "Global Compact" promoted by the United Nations upon which the Code of Ethics of the Telecom Italia Group is based.
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The qualified parties are inserted in the Suppliers’ Register of the Telecom Italia Media Group per commodity category.
The procurement policy of the Telecom Italia Media Group is based on competition between qualified Suppliers on the basis of parameters of purchase cost, procurement times and quality of the supplies.
As regards sub-contractors an analogous checking process is carried out — although simplified with respect to that for suppliers — and the outcome of this process conditions the authorization to sub-contracting agreements for technical and organizational work (actual ability to produce/supply the product/work and render the service). Certification of sub-contractors is normally the responsibility of the Company Protection and Prevention Service, in full compliance with applicable provisions of law governing safety and hygiene in the workplace (request to view the Consolidated Workers Register, in compliance with the requirements set out in Legislative Decree No. 81/08, the Ministerial Decree of March 10, 1998 — fire-prevention rules — and Legislative Decree No. 106/09).
› Vendor Rating
The quality of the supplies/services is controlled by way of a specific "Vendor Rating" for the product/performance/service on the basis of the technical, commercial and administrative valuations. In special cases third-party audits are carried out.
EQ controls, according to the type of P/S, can be made:
before delivery / provision at the suppliers premises and/or at the premises of their authorized subcontractors.
at certified test laboratories (usually in the early stages of the products supply or following critical issues emerged in the field)
"on site" during the stages of products/systems commissioning or service provision.
In addition to controls on P/S, audits are carried out on suppliers that apply for qualification or subcontracting, on products/processes identified as non-compliant during operation and with regard to the subject of Corporate Social Responsibility (e.g., environment, health, safety).
The controls take place both at a centralized level at the moment of the qualification of the Supplier, and care of the individual Telecom Italia Media Group companies during the life of the contract.
› Transparency
The transparency of relationships with the suppliers is guaranteed by way of:
- submitting the results of the "Vendor Rating" to suppliers in order to coordinate actions for improvement; submission can be omitted in critical cases (e.g., audits in progress or completed, or more generally incorrect behavior); it may be omitted even if requested by supplier.
- communication of the control system by way of documents annexed to contracts and in which are contained all the aspects relative to the specific monitoring;
- online tenders through the Telecom Italia Corporate website with the possibility for Suppliers to know in real time their performance and the final outcomes;
- insertion of elements relative to conduct which the Suppliers must fulfill in terms of health and safety, respect for the environment, etc. in documents annexed to the procurement tenders and relative specifications.