Procurement policy in Mongolia
AREVA’s local supply chain team handles procurement for all projects in the country. It manages all flows of products and services: purchases, dispatching, order processing, transport and logistics.,The supply chain expertsare also responsible for ensuring that suppliers comply with Mongolian and AREVA safety requirements and supporting their future development. AREVA is committed to developing a dynamic local supply chain in Mongolia.
All suppliers that AREVA contracts in Mongolia have an important role to play in the projects concerned.
Purchasing policy in Mongolia
AREVA receives orders and carries out sourcing and negotiation with the best local and international suppliers. It purchases products and services that meet the requirements of internal customers in terms of localization, quantity, on-time delivery, safety and sustainable development.
Ways in which Purchasing can contribute to company development
- By addressing Health, Safety & Environment issues:
A section on safety is included in all contracts to help ensure that suppliers comply with Mongolian and AREVA safety requirements. Agreements explicitly require that suppliers place emphasis on areas of corporate social responsibility.
- By helping to make projects competitive:
Purchasing is active in working to improve budget performance, reduce the costs of non-quality and ensure on-time delivery.
- By implementing performance indicators and processes to enhance the efficiency of AREVA’s procurement organization in Mongolia. This includes specific measures such as internal and external claims management, as well as other processes to promote speed of response and productivity.
Good Practice: Improved safety performance for drilling subcontractors
The ultimate safety goal pursued by AREVA’s mining activities is to achieve zero accidents for both their own employees and their subcontractors.
In Mongolia, major prevention and support work has been carried out with the three local drilling companies since 2008 and the results are very promising.
A diverse range of measures has been implemented: hazard training, the wearing of personal protective equipment and the cleaning of work areas. AREVA has also supported Mongolian companies with purchasing materials. In-situ training on drilling techniques has also been provided.
Local contractors play an important role in our development. By working with local companies wherever possible, we are delivering on our commitment to invest and be involved at local level.