RWE Service supplier management Focus on the best Combining strengths
3 SUPPLIER MANAGEMENT INTRODUCTION Supplier management at a glance By combining our strengths, we want to become even better Our suppliers are key to our efforts to achieve a top position in the energy market. So we must focus on the best and most efficient suppliers to support us in attaining this goal. Supplier management promotes the successful cooperation between suppliers and RWE by creating transparency and continuously optimising our supplier's performance. That is why the following critical success factors are our maxim for successful cooperation: Supplier selectionfor supplier management process development Supplier evaluation Supplier selection Fair selection Supplier evaluation On the right track with transparency and openness Supplier Management strategic suppliers Supplier classification Identification and consistent implementation of individual approaches Supplier development Change or be changed joint planning Supplier classification These factors are a key element of our procurement strategy.
SUPPLIER MANAGEMENT SUPPLIER SELECTION 4 Supplier selection Fair selection Our objective is to select the best suppliers from all over the world. The decisive factors in this process are the quality of cooperation, specific performance and strategic importance. Both large-scale and small-scale suppliers are eligible. Prior to the selection decision, our sourcing teams identify all purchasing possibilities across the world, taking account of requirements and the procurement market. Suppliers are selected after receipt of their supplier self-assessment and their strategic assessment. The next stages are supplier evaluation, supplier classification and supplier development. After successful completion of this process, the supplier has qualified for closer and longer-term cooperation. Requirements Procurement market Fair selection Supplier self-assessment Strategic assessment Supplier evaluation Supplier classification Supplier development Close and long-term cooperation Sourcing teams
5 SUPPLIER MANAGEMENT SUPPLIER EVALUATION Supplier evaluation On the right track with transparency and openness Selected suppliers are objectively evaluated by RWEinternal experts. We work fast and paperless via the internet, providing you with easy access to your assessment by RWE at any time. Thus, the successful performance of the best suppliers, but also the missing performance of poorly rated suppliers is communicated in a transparent and uniform way. The best-performing suppliers take centre stage due to uniform evaluation criteria and the RWE-wide communication of supplier evaluation results. These results form the basis for the agreement of specific improvement objectives between RWE and its suppliers. Uniform evaluation criteria are used throughout the Group, focussing on the following central aspects: Financial stability Market/dependence Availability/ Delivery capability Price Quotation behavior Contract Process Cooperation Risk Industrial safety Environmental protection Commercial aspects Industrial safety/ Env. Protection Categories and criteria Technology/ innovation Quality Resources Product/know-how Innovative power Cooperation Logistics Services/supply Human resources Documentation Cooperation Qualitymanagement Schedule/volume effectiveness Technical handling
SUPPLIER MANAGEMENT SUPPLIER CLASSIFICATION 6 Supplier CLASSIFICATION Identification and consistent implementation of individual approaches The category to which a supplier is assigned is determined by combining the evaluation of suppliers with the assessment of their strategic status, which is established on the basis of uniform and objective criteria. This classification forms the basis for optimising the cooperation between the supplier and RWE. The supplier has the possibility to move into a higherrated category by improving its performance and aligning its strategy with RWE requirements. This will enhance the supplier's opportunities for establishing business relations. Strategic importance 100 Develop bottom-up actions (ad hoc), if appropiate phase-out, volume reduction Joint optimisation with suppliers Independant optimisation of supplier 0 0 Supplier evaluation 100
7 SUPPLIER MANAGEMENT SUPPLier DEVELOPMENT Supplier development Change or be changed joint planning Supplier development means modifying a supplier with the aim to enhance its performance. Objectives are developed jointly with the supplier on the basis of its classification and evaluation results. This can be achieved in various ways: Suppliers optimise themselves in line with jointly defined objectives whose progress is regularly analysed and discussed. RWE actively supports the supplier's development, i.e. jointly identified measures are carried out by RWE together with the supplier. Ad-hoc measures are implemented by the supplier in the short term in line with defined objectives. In this process, we rely on our supplier's initiative. Each supplier is called upon to use its know-how and develop own ideas and proposals for supplier relationship optimisation and implement them jointly with RWE. The number of qualified proposals and their potential are the main indicators for a supplier's initiative. This will have a direct positive influence on the next supplier evaluation.
SUPPLIER MANAGEMENT CONTACT 8 Supplier MANAGEment How to proceed For more detailed information on supplier management at RWE, please go to www.rwe.com/lieferanten Basic procedure We will contact you as soon as you have been actively accepted into our supplier management programme. In this case, we will provide you with all the necessary information on procedures and the supplier management software. For further questions (Prozess, Methodik und Verfahren) RWE Konzern Volker Gajewski E volker.gajewski@rwe.com RWE Energy Lothar Ahle E lothar.ahle@rwe.com Contact The purchaser in charge will continue to be your contact person. Please contact him or her for any queries you may have concerning supplier management. For technical questions RWE Helpdesk E srm@rwe.com T +49 231 438-4711 RWE Power Stefan Willutzky E stefan.willutzky@rwe.com RWE Service Gebhard Wiersch E gebhard.wiersch@rwe.com RWE Group Center Dr. Dirk Schallenberg E dirk.schallenberg@rwe.com RWE Dea Henning Russlies E henning.russlies@rwe.com RWE Energy Nederland Matthias Häussler E matthias.haeussler@rwe.com
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