Management approach

GRI 102-9

Supplier engagement is regulated by the Group’s Policy on the Basic Principles of Procurement Activities and the Supplier Code of Conduct. In 2020 the Supplier Code of Conduct was updated. Another change in procurement management relates to the Transformation of the Supply Chain project, whose implementation is ongoing. In 2020 the process of centralising procurement functions continued and responsibility for purchasing services in all Russian divisions was transferred to the Management Company. We also continued to create cross-divisional teams and centralising some functions at division level. More information on the EVRAZ procurement management system is available in our 2019 Sustainability Report.

EVRAZ realises that the success of the procurement department depends on the professional and leadership skills of its employees, therefore, it actively involves them in development programmes. In 2020 the TOP-100 programme was launched. Its 86 participants are directors and heads of the enterprises of the trading circuit and supply department of EVRAZ. As part of the programme, our specialists undergo goal-setting and employee development trainings, in addition to trainings in effective management and other skills. Furthermore, in 2020 our procurement specialists from the Management Company began to actively engage with representatives of EVRAZ foreign branches, with a view to sharing experience.

EVRAZ aims to expand the automation of procurement stages in order to ensure a high level of transparency and efficiency. In 2020 up to 80% of purchases were made via electronic trading platforms. A key project in 2020 was the introduction of a marketplace: an online store to enable internal users of EVRAZ to order low-value goods and materials without having to interact with procurement managers. Currently the store allows goods to be purchased in 12 categories, and delivery times have been reduced to 48 hours thanks to the automation of the process and a reduction in the number of links in the order chain.