International procurement standards at PKP Energetyka confirmed by CIPS.

PKP Energetyka was granted a quality certificate from the Chartered Institute of Procurement and Supply (CIPS), confirming the highest level of procurement processes. It joined the elite group of only 6 companies in Poland that have successfully passed the demanding standardization and evaluation process of this largest and most prestigious procurement organization in the world. PKP Energetyka is the only awarded entity from the railway sector.

The qualification obtained is a certification of the organization’s procurement maturity and the culmination of the company’s transformation process in another area – optimization and digitization of the procurement process. The certification process lasted 9 months and consisted in a detailed audit. CIPS experts took account of five key areas: performance management, leadership and organization, strategy, human resources, and processes and systems. PKP Energetyka is the only railway company in Poland and in Central and Eastern Europe with such a certificate.

“The scale of procurement in our company is enormous. Over several years, PKP Energetyka has allocated nearly PLN 4 billion for projects, which involved thousands of procurement processes each year – from power equipment to RES energy. We have nearly 2,000 active suppliers and we manage relationships with them according to segmentation principles. We are proud that the whole process of sourcing materials and services is in the hands of our Procurement Team composed of 16 members. We manage a contract throughout its life cycle – from specification to final settlement. During the CIPS evaluation process, we prepared almost 100 so-called testimonials, thus demonstrating to an independent assessor that we meet all, stringent criteria. I am particularly satisfied with our category management process and the IVALUA procurement platform." – says Łukasz Świderski, Director of the Procurement and Logistics Department at PKP Energetyka.

The transformation of procurement processes at PKP Energetyka included, first of all, their full digitalization based on modernized procurement principles included in a modern and practical Procurement Policy and Instructions. It consisted of: a strategic approach to the category, including supplier evaluation and preliminary qualification, qualitative verification and reporting based on the Power BI IT system. The auditors also appreciated the maturity of supplier relationship management, transparency in expenditure management, delivery noticing system for business partners as well as integration of procurement data from all systems in the data warehouse. Within the company, the IVALUA procurement platform works very well, automating and improving the quality of conducting the procurement process and supplier relationships. The certification contributed to implementing in-depth intellectual property management and risk management principles in logistics channels.

“The pandemic and the war in Ukraine resulted in growing risks related to vulnerabilities to disruption of supply chains. Taking care of the quality and timeliness of projects, among others, as part of the Power System Modernization Program (MUZa) or the National Railway Program (KPK) which are essential for the railway, we implemented international procurement standards guaranteeing the continuity of processes being carried out. ESG dimensions such as ethical behavior towards contractors and the ability to verify the carbon footprint of our suppliers were also very important for us. In line with our philosophy of transparent operation and pursuit of global standards, we have subjected the procedures and processes implemented to external, international CIPS verification. I would like to congratulate the Team, which showed great commitment both to the change process and to obtaining this award.” – comments Wojciech Orzech, President of the Management Board, PKP Energetyka.

The CIPS Procurement Excellence Program (or Corporate Certification) is a globally recognized award given to organizations demonstrating the highest standards in procurement processes. It confirms the professionalism, quality and safety of all procurement activities, ethical conduct and business credibility towards both customers and suppliers.

The company was granted the certificate at the Standard level for a period of 2 years, with the possibility of improving to the Silver, Gold and Platinum levels. In addition to PKP Energetyka, CIPS certificates in Poland are held by: PERN SA, PKN ORLEN S.A., ORLEN Upstream, PKO Bank Polski and PZU. Globally, at the Standard level, this quality mark was awarded to more than 300 organizations.

CIPS was founded in 1932 and in 1992 obtained an elite royal charter granted by Queen Elizabeth II. It currently has 200,000 members, operates in more than 150 countries and is currently the largest and most prestigious procurement organization in the world. The organization’s overarching goal is to improve the knowledge and procurement powers of its members – both as individuals (e.g. in the form of MCIPS certification) and as corporations – and through this to enhance the importance of the procurement profession within the organization. Among others, CIPS trains and certifies procurement organizations of the largest companies in the world, in many industries, including oil, pharmaceuticals and finance. In Poland, the CIPS representative is the procurement consultancy company, PROFITIA Management Consultants, which supports organizations applying for both corporate and individual certificates.