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CHAPTER 5 Our responsible management in 2018 Our supply chain

Relationships with our suppliers are of special strategic importance and a spe- cial team has been established in the Purchasing Department dedicated exclu- sively and across the entire business to handling these relations with current and potential suppliers.

We are aware that they are a major factor in our success.

Our relations with suppliers are founded on three pillars:

In 2018, 69% of total procurements spend was with 53% of Spanish suppli- ers. We work to contract local suppliers in Spain in order to contribute to the de- velopment of the communities in which we operate. Around 45% of the contract value is with local or locally established suppliers in the areas where the industri- al activities of the Palos de la Frontera, Campo de Gibraltar and Tenerife centres are sited.

Due to our growing international reach, we have made the same pledge to en- courage local purchasing and outsourc- ing in the other countries where we op- erate, and have set the challenge of drawing up specific plans to achieve this in each geography. In particular, in the Caracara area (Colombia) we are running programmes to support suppliers, help- ing them to boost supply chain productiv- ity and competitiveness. This includes lo- cal supplier training.

MANAGING SUPPLIER RELATIONS AND DEVELOPMENT

DECISION-MAKING ABILITY Providing buyers with the tools needed to make decisions.

CORPORATE STANDARDS Ensuring suppliers are aware of and comply with Cepsa s standards.

VALUE OF RELATIONS Maximizing the value of relations through targeted action and initiatives.

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