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RWE Service
Supplier managementFocus on the best – Combining strengths
Supplier management at a glanCe
Supplier management promotes the suc-
cessful cooperation between suppliers and
RWE by creating transparency and conti-
nuously optimising our supplier's perfor-
mance.
That is why the following critical success
factors are our maxim for successful coope-
ration:
» Supplier selection
„Fair selection“
» Supplier evaluation
„On the right track with transparency
and openness“
» Supplier classification
„Identification and consistent imple-
mentation of individual approaches“
» Supplier development
„Change or be changed – joint planning“
These factors are a key element of our pro-
curement strategy.
Managementstrategicsuppliers
Supplier selection forsupplier management process
Supplier classification
SupplierevaluationSu
pplie
rde
ve
lopment
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.
3 Supplier management – intrODuCtiOn
Supplier 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.
Fair selection
Requirements Procurement market
Supplier self-assessment
Strategic assessment
Supplier evaluation
Supplier classification
Supplier development
Close and long-term cooperation
Fair
sele
ctio
n
Sour
cing
team
s
Prior to the selection decision, our sourcing teams
identify all purchasing possibilities across the world,
taking account of requirements and the procure-
ment 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 coopera-
tion.
Supplier management – Supplier SeleCtiOn 4
Supplier evaluatiOn
On the right track with transparency and openness
Selected suppliers are objectively evaluated by RWE-
internal 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 sup-
pliers, 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:
Industrial safetyEnvironmental protection
»»
Services/supplyHuman resources
CDocumentation
ooperationQualitymanagement
»»»»»
Resources
Innovative powerC
Product/know-how
ooperation
»»»»
Schedule/volumeeffectivenessTechnical handling
»
»PriceQuotation behaviorContractProcessCooperation
»»»»»
Financial stabilityMarket/dependenceAvailability/Delivery capability
»»»
Categoriesand
criteria
Industrial safety/Env. Protection
Commercialaspects
Risk
Technology/innovation
Quality
Logistics
5 Supplier management – Supplier evaluatiOn
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.
Supplier evaluation 100
Stra
tegi
cim
port
ance
100
0
0
Independantoptimisationof supplier
Developbottom-up
actions(ad hoc),
if appropiatephase-out,
volumereduction
Joint optimisationwith suppliers
This classification forms the basis for optimising
the cooperation between the supplier and RWE.
The supplier has the possibility to move into a higher-
rated category by improving its performance and
aligning its strategy with RWE requirements. This will
enhance the supplier's opportunities for establishing
business relations.
Supplier management – Supplier ClaSSiFiCatiOn 6
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 dis-
cussed.
» RWE actively supports the supplier's
development, i.e. jointly identified mea-
sures 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 pro-
posals 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 DevelOpment
7 Supplier management – Supplier DevelOpment
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 manage-
ment software.
Contact
The purchaser in charge will continue to be your
contact person. Please contact him or her for any que-
ries you may have concerning supplier management.
For technical questions
RWE Helpdesk
T +49 231 438-4711
For further questions
(Prozess, Methodik und Verfahren)
RWE Konzern
Volker Gajewski
RWE Energy
Lothar Ahle
RWE Power
Stefan Willutzky
RWE Service
Gebhard Wiersch
RWE Group Center
Dr. Dirk Schallenberg
RWE Dea
Henning Russlies
RWE Energy Nederland
Matthias Häussler
Supplier management – COntaCt 8
RWE Aktiengesellschaft
Opernplatz 1 45128 Essen Germany
T +49 201 12-00 I www.rwe.com
