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Strengthening the value chain in Ecuador

Published 21.5.2024

More than 100 suppliers in the country came together to firm up their knowledge about Techint  Engineering & Construction's QHSE, Compliance, Supply Chain, Exiros and Supply Contracting policies.

 

At the II Workshop of Suppliers of the Andean Region, organized by Construcciones y Prestaciones Petroleras (CPP) in Ecuador, the company reaffirmed its commitment to sustainability, ethics and excellence in the management of its relationships with its customers and other stakeholders. The event brought together more than 100 direct suppliers and served as a platform to align strategies and standardize procedures in line with the company's corporate values.

“Since 2012 we have developed a significant relationship with our suppliers, together transforming the way we work,” explained Diego Paredes, Procurement Sr. Manager of CPP. He added that, “They have become strategic allies, capable of meeting international standards, an evolution that has only become possible thanks to a joint effort made in training and alignment with our corporate practices.”

During the event, emphasis was placed on the importance of Quality, Safety and Environmental Protection, fundamental pillars of the company’s operational strategy. “Safety is more than a requirement; it’s a shared responsibility that ensures our long-term success and sustainability together with our contractors,” said Aníbal Prado, Project QHSE Manager from Ecuador.

Integrity, transparency and ethics in business

Techint E&C and CPP's supplier management system pivots on its Supplier Code of Conduct, which establishes clear standards of integrity, transparency and legal compliance. This code is applicable to all suppliers without exception, and covers critical aspects such as rejecting behavior involving bribery and corruption, protecting information, and respect for human and labor rights. Teresa Castro is the Business Conduct Compliance Expert at the SADDN Project and took part in the workshops, explaining that, “It’s essential for our suppliers to comply with these standards, so that we can ensure ethical and transparent behavior and know that our value chain is always transparent and reliable.” She added that, “We are continually working to strengthen our compliance policy, integrating internal supervision with external collaboration and training, to promote responsible business practices and extending these principles to the entire value chain.”

 

Global chain, Supply strategy and Supply Contracting

Supply chain optimization was another topic addressed at the meeting. “We seek to build long-term relationships with suppliers that not only meet our quality standards, but also share our vision of sustainability and efficiency,” Diego explained.

Danilo Saad, Project Supply Contracting Sr. Manager, mentioned that the Supply Contracting area “plays a crucial role in our value chain, optimizing costs, managing risks and supervising the performance of contractors, from initial planning to the closing of contracts.” He highlighted that the area not only helps to improve predictability and efficiency in operations, but is also essential to maintain the company's competitiveness and sustainability. “We must ensure that our communication with suppliers is clear and aligned, as this makes for more effective planning, ensures contractual compliance and strengthens our business relationships, reflecting our dedication to ethics, quality and continuous improvement,” explained Danilo.

During the meeting, representatives of Exiros, a Techint Group company, were also present, sharing procedures, information about communication channels and the areas of focus with its suppliers in Ecuador. The reason is that the company has opted to pursue an integration strategy with key suppliers by setting up long-term agreements to strengthen its supply chain and improve operational efficiencies. “Good relationships with local suppliers, establishing long-term framework contracts for prices and using technologies such as B2B integration and purchasing chatbots are the added value that Exiros offers. These measures not only optimize bidding and ordering processes, but also foster closer and more strategic collaboration with key partners,” added Daniel Urrea, Exiros Regional Acquisitions Coordinator.

 

A long-term role

For Juan Pablo Gallardo, Surface Facility Project Leader at the Shushufindi Consortium, “CPP has been a strategic partner for us because it has fueled growth in the industry at national level. It’s remarkable to see suppliers that I have known for a long time become companies with their own quality standards, experiencing growth, and developing a valid infrastructure that can be taken into account at an international level.” He stressed that, “The main value we have in common is a dedication to sharing what we do, our knowledge, services and respect. Through this kind of synergy, we have earned the support of society as a whole, enabling us to be a source of job creation at what is a very critical time for the country.”

The strength of the value chain, comprised of the company's suppliers, is supported through good practices in QHSE, Compliance, Supply Chain, Exiros, Supply Contracting and Social Management. As regards Social Management, the presenters highlighted the importance of sharing principles rooted in diversity and respect for freedom of association with the objective of fostering a positive workplace climate. CPP also presented its own range of social management actions, motivating suppliers to adopt similar initiatives.

The meeting concluded with an informal dialogue between suppliers and presenters where questions were raised and answered. At the end, there was a call to action regarding the importance of continued collaboration and open dialogue to present a united front in the face of future challenges.

“We are particularly proud of how we have contributed to the growth of the communities where we operate, leaving a legacy of value and relationships that have evolved overtime to become strategic partnerships,” declared Gabriel Martinez, Engineering Sr. Manager of Ecuador. He added that, “This approach has transformed the local availability of services and products, as previously we depended on imports. Today we have a robust offer of Ecuadorian products to choose from. This change not only strengthens our value chain, but also maximizes the positive impact on our projects and local communities.”

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