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Our Purchasing Department handles almost 3,000 suppliers following our standard procedure that ensures out- sourcing criteria and requirements are the same across the Group to achieve the highest levels of quality, transparen- cy and ethical conduct in our value chain and minimize any associated risks.
In 2018, upwards of 15% of our suppli- ers (supplying 92% of all procurements) were classified in segments I, II and III. All our efforts are focused on working with these suppliers and we strive to forge closer ties with them. We monitor the
criticality of segment IV suppliers (which have a limited economic impact) in terms of operations, health and safety and the environment, and the degree of risk they pose. Segment V suppliers are excluded from procurements monitoring because they are only awarded contracts of less than 5,000 per annum and are conse- quently not the subject of any specific analysis or actions.
Eighty percent of our supply chain com- prises procurements of services, while the other 20% concerns the provision of equipment and material assets.
OUR SUPPLY CHAIN
Nº. of suppliers 1 % of suppliers 1 Contract value
(thousands of euros) 1, 2 % of contract value 1, 2
Segment I 106 2% 753,918 57%
Segment II 246 5% 327,240 25%
Segment III 374 8% 140,008 11%
Segment IV 2,205 46% 100,005 8%
Segment V 1,838 39% 3,171 0.2%
Our procurements model is managed by category managers who purchase on be- half of the various businesses, working closely with them while gaining specif- ic knowledge of each category of prod- uct and service depending on their spe- cialization.
We have a Code of Ethics and Conduct for Suppliers, which helps us fulfil our guid- ing principles and is applicable in every country where we do business and all our operations. It includes our pledge to ad-
here to the principles of the United Na- tions Global Compact.
In 2018, we reviewed our Code of Ethics and Conduct for Suppliers to bring it into line with the new Cepsa Code of Ethics and Conduct, approved in 2017 and dis- seminated to over 12,000 suppliers. In or- der to oversee compliance with the code, we have set up a channel through which incidences and irregularities can be re- ported to identify any issues that could occur in our commercial dealings.
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