Suppliers

How to become a supplier

Our suppliers are essential for the functioning of Red Eléctrica, for that reason they are all qualified and assessed to know the supplier company’s capacity to meet commitments.

Supplier qualification

For Red Eléctrica, its suppliers are a key element in its productive processes, together with the equipment, materials and services they provide the Company. In the case of those supplies which Red Eléctrica considers strategic for its facilities, the quotations are requested in a general manner from suppliers who have been qualified by the Company.

All suppliers, even if qualification is not necessary, must be assessed to determine the supplier company’s capacity to meet commitments. For this reason, if a company is interested in becoming a supplier of Red Eléctrica, it must first send the information requested through the basic supplier registration system.

The information received will be analysed by Red Eléctrica: if we are interested in the goods or services and the supplier needs to be qualified (in the case of supplies or services which are considered strategic), the qualification process shall be commenced. If it is not necessary for the supplier to be qualified, due to the type of supply or service it offers, they will be taken into account for Red Eléctrica's possible future needs. In the case of purchasing processes for exceptional services, the qualification occurs at the moment of the tendering process.

Both the supplier and its goods or services shall be evaluated during the qualification process. This means that the supplier will be evaluated in regard to the goods or services which it offers Red Eléctrica. All the conditioning factors related to price, finance, technical aspects, quality, safety, the environment and any other aspect deemed necessary shall be evaluated.

In order to participate in the tenders associated with supplies or services of high criticality and impact, you must first comply with the requirement to be registered in RePro system. If you have any questions about this registration, please contact the company called Achilles through its website or by calling +34 91 4264935.

Learn more about the details of the qualification process. See more

Access the basic supplier registration system to include or modify your data. See more

Informative note regarding documentary proof of information changes of a business nature. Any documentation that serves to prove a change of a business nature (company name, change of Tax Identification Code (CIF), contact information, etc.) should be sent by email to asa@ree.es.

Monitoring of suppliers

Once the supply process has begun, Red Eléctrica continuously monitors the performance of its suppliers and verifies compliance with all the requirements (business, financial, technical and sustainability) established by the Group.

The main actions carried out during the monitoring process are the following, according to type:

Business
  • Constant review of business requirements, as well as of the capacities and resources required of suppliers during the qualification process.
  • Periodic monitoring of the supplier’s financial solvency. As part of its sustainability strategy, Red Eléctrica is committed to continue working with suppliers that may be in financial difficulties, but it must also manage the risk derived from working with a supplier in such a situation.
  • In order to be able to identify if a supplier is in financial difficulties, the Company relies on the ‘scoring’ calculated by Axesor, an expert company in credit risk management and the first Spanish Rating Agency. In addition, Red Eléctrica has jointly developed with Axesor its ad hoc financial solvency ratio, which allows suppliers whose financial difficulties may affect their ability to execute the work contracted by the Company to be assessed and identified. Moreover, as a measure of transparency, if a supplier is identified as being in this situation, the supplier is informed of its new status and about the measures that Red Eléctrica will undertake. This allows the Company to mitigate the risk of the incomplete execution of works, while being able to maintain the business relationship with the supplier, helping it to overcome a weak financial situation.
Technical
  • Analysis of incidents related to the performance of the supplier; an analysis conducted in collaboration with different areas of the Company during the execution of the works. Identification of improvement actions and monitoring of the implementation of the action plans that also allow the development of the supplier. Ultimately, if a supplier is not successful in implementing the action plan, the Company may apply a financial penalty or may change the supplier’s qualification status (warning, temporary blocking or disqualification).
Corporate responsibility
  • Conducting of social audits in order to assess compliance with the Supplier Code of Conduct and through which improvement actions can be identified and action plans agreed on with suppliers. The continuous monitoring of said plans has allowed Red Eléctrica to measure evolution and verify the improvement implemented, making sure that it has favourable impact on supplier development.

 

Continuous improvement of the monitoring process

Red Eléctrica continues to work to improve communication and transparency with its suppliers in the monitoring and tendering processes. This allows, on the one hand, a more fluid dialogue to be established and ensures that Red Eléctrica’s expectations are known by the supplier, and on the other, it contributes to supplier development, increasing the commitment to creating value for them.

To this end, a series of actions are being carried out, such as: strengthening the figure of the Key Supplier Manager, which will enable a more fluid communication with suppliers that are key for Red Eléctrica, as well as the progressive application of service level agreements and of performance indicators in contracts.