Connections
Implementing a Vendor Rating system
During FY 2021, to ensure sustainability, ethics and transparency in relation to our purchasing process, the Ruffino Group started to work on a Vendor Rating system for the supplier assessment process by implementing a Vendor Matrix. The implementation process for the matrix should have been finished by the end of FY 2022, but it has been delayed partly due to the Covid-19 pandemic and partly due to internal reorganization. From FY 2023, this matrix will be integrated into the Ruffino Group’s Procurement Procedure.
The suppliers are classifieds according to the following characteristics:
- Type of good or service provided;
- Procurement risk due to the complexities of the supply market, in terms of the avail- ability of the goods or service, the number of alternative suppliers, supplier power, obstruction to entry into the sector;
- Strategic importance of the good purchased, in terms of added value, economic impact and impact on profitability.
It will be possible to analyze and assess current and future suppliers as well as allocating each partner with an “ID card” in order to make informed choices that evaluate aspects of sustainable management at the same level as financial robustness and quality, which are already checked and controlled.
The vendor rating will be applied to all sup- pliers from which the Group procures goods or services with a cost equaling or exceeding 30,000 Euro.