How to become a supplier

How to become a supplier

Suppliers' qualification

The Company considers its suppliers, as well as the equipment, materials, services and work that it commissions from them, to be a key factor for its business.

If you are interested in becoming a supplier for the Group, please register on the supplier’s classification and rating system (PRORED), the space set up so that any company can see what supplies the company acquires and what the minimum requirements to meet are in each case. This space also allows companies interested in becoming a Group’s supplier to register and start the qualification process.

Suppliers’ space (PRORED)

Suppliers’ space (PRORED)

Find out about the Supplier portal (PRORED) that allows any company to find out about the products and services the Group acquires and what the minimum requirements are that must be met in each case.

The minimum requirements to be met are at the supplier’s level (business, financial, legal, technical, integrity and sustainability and are initially verified in the registration and rating process and subsequently on a continuous basis during the supplier’s follow up process.

For those supplies whose nature makes it possible to define certain minimum requirements to be met, a “supplier profile” is created and suppliers must fulfil it to qualify.

Extending requirements to the supply chain

The Group, in its commitment to extending its rating requirements to the second tier, requires that subcontractors carrying out activities of higher relevance and criticality comply with the same requirements demand to awarded suppliers.

Monitoring of suppliers

The Group undertakes an ongoing monitoring of suppliers within its suppliers portfolio, verifying compliance with all the requirements set by the Group (business, financial, technical, integrity and sustainability).

Within the suppliers’ monitoring framework, the Supply Area conducts the following actions:

Business monitoring
  • Constant monitoring of a supplier’s business and legal statuary requirements (i.e. being up to date with payments to the Spanish Tax Authority and Social Security, having a Civil Liability insurance in force, etc.), in addition to ensuring that suppliers are keeping up-to-date regarding the capabilities and resources established and required from suppliers during the qualification process.
  • Monitoring the financial solvency of all qualified suppliers and applying corrective measures if and when they might in a weak financial situation. As part of its sustainability strategy, Red Eléctrica is committed to continue working with those suppliers that are in financial stress, but additionally it must manage the risk derived from working with suppliers that may potentially be in financial difficulties.
  • Implementation of a security management model to the supply chain for procurement for the Red Eléctrica Group, resulting in a reduction of the risk inherent following the incorporation of security requirements among the minimum criteria for signing supply contracts for which this model will be progressively implemented.
  • Identification of integrity findings.
  • Evaluation of the supplier in criminal, privacy and cyber security issues(Scoring compliance). Evaluation of a supplier’s likelihood of compliance with a regulation on these issues.
    The scoring associated with each of these three areas, as well as the overall result, enables us to assess the level of risk of a supplier (low, medium, high or very high) in each of them and globally, and to share a report with the supplier that contains the following information:
    • An executive summary, with the normative risks identified.
    • The metrics and assessment scales.
    • Conclusions.
    • Recommendations for Criminal Risk, Privacy and Cyber-security, depending on the evaluation of the risk of compliance.

    Consult your compliance scoring here.
Technical monitoring
  • Analysis of incidents related a supplier’s performance during the execution of the service, works or the provision of supply works awarded. Said analysis is conducted in collaboration with the different areas of the Company responsible for monitoring and overseeing the contracts.
  • Identification of actions to improve and define action plans that can correct the issues and advance the supplier. En último término, la aplicación de una penalización económica o sanción en su estado de calificación (apercibimiento, bloqueo temporal o descalificación).
  • Establish performance indicators and service level agreements (SLA) in the contracts.
Social responsibility monitoring
  • Conducting of social audits in order to assess compliance with the Supplier Code of Conduct.
  • Identification of actions to improve and establish action plans that enable the supplier to develop, measure their advances and verify the improvements implemented, ensuring their impact in this development.
  • Implementation of a new supplier evaluation model for sustainability (ESG scoring) to replace the previous RSC scoring. This new model is organized around three core areas of sustainability, summed up in the acronym ESG (Environment, Social and Good Governance)
    The new scoring consists of a questionnaire with 58 questions, some of which require the mandatory submission of accreditation documents or evidence if the answer is affirmative, which allows us to evaluate suppliers in terms of these three aspects of sustainability and compare them against the scores obtained by other supplier.

    Click here if you want to see your ESG score.

If, during the supplier’s monitoring, certain incidents due to the supplier are identified, its rating status may be changed and may be even disqualified.

Continuous improvement of the monitoring process

The Group continues to work to improve communication and transparency with its suppliers in the monitoring and tendering processes. This allows it, on the one hand, to have fluid dialogue and ensuring that the Group’s expectations are known by the supplier and, on the other hand, to develop its suppliers, increasing the commitment to generating value for them.