102

Our supply chain is guided by an innovative centralised model, on the basis that the purchasing function must be a strategic area within the Company s decision-mak- ing process. This function is carried out in a coordinated way by the Purchasing De-

partment using a system that is central- ised by categories and specialized fields so as to meet the procurement needs of the entire Company effectively and effi- ciently. Purchasing management at Cepsa is based on three fundamental factors:

The system enables us to enhance our procurement strategy, boost our efficiency and sustainability, and create value for our suppliers.

Our purchasing model is managed by cat- egory managers who handle group pur- chases for the different business units so as to work closely with both upstream and

downstream businesses in the value chain for oil and gas, while gaining in-depth spe- cific knowledge of each category, divided into the following specialized fields:

marketing and Cross-Cutting Services Engineering Exploration and Production

Insurance Logistics manufacturing and Technology

5.6 RESPONSIbLE SUPPLy CHAIN

AN INNOvATIvE mODEL

Process streamlining

The procurement and supplier selection system specified in the Purchasing Operating manual is extended to the entire Company.

Satisfaction of the parties involved

Ranging from requesting units to suppliers, through improved communication and performance measurement.

Search for efficiency

Through planning, sustainable savings, use of standardised tools and processes, and seeking value added.

1,266* M IN PAymENTS TO SUPPLIERS

+3,000 RISk-ANALySED

SUPPLIERS

+2,300 COmPLIANCE-ANALySED

SUPPLIERS

5,000 SUPPLIERS

WE WORk WITH AROUND

CHAPTER 5 Cepsa in 2017

* Figure relates to purchases made by the Purchasing and Contracts business unit. Does not include purchases of crude oil or other raw materials.