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Toronto Hydro 2014 CR Report_FINAL

TORONTO HYDRO 2014 CORPORATE RESPONSIBILITY REPORT 35 INTRODUCTION MATERIALITY AND STAKEHOLDER ENGAGEMENT OUR WORKFORCE SUSTAINABLE BUSINESS AND OPERATIONS OUR ENVIRONMENTAL FOOTPRINT SUPPORTING OUR COMMUNITY GOVERNANCE AND ETHICS PROCUREMENT PRACTICES Corresponds with Toronto Hydro’s Material Aspect: Materials Selection and Usage G4-12 Supply chain The Supply Chain Services group supports the execution of Toronto Hydro’s asset management plans and other operating programs that rely on procurement and warehousing activities. The overarching goal of the team is to facilitate the timely and cost-effective procurement of services, materials and equipment. Supply Chain Services is also responsible for maintaining the inventory to support uninterrupted work and managing material handling costs. Each year, the group facilitates the procurement, warehousing and distribution of $80 to $90 million in assets, and executes an average of 145 contracts. The Supply Chain Services group is responsible for sourcing reputable suppliers, monitoring their performance to ensure that they meet their contractual obligations, and generating the purchase orders that underlie each agreement. Supply Chain Services leads the competitive bidding generation and evaluation processes, and conducts market benchmarking to identify emerging trends and suitable suppliers. Suppliers range from: • Manufacturers that sell materials directly to Toronto Hydro • Distributors that provide materials from various manufacturers • Service providers that offer professional services for our Communications, Legal, Human Resources, Facilities Maintenance, Engineering, and Financial divisions • Contractors who provide various construction and electrical distribution services to complete our capital and maintenance programs A large component of the supply chain is related to procuring electrical materials and contractor services to complete capital construction. Most manufacturers in our industry sell or make their products available through distributors and do not deal directly with utilities. We outsource a portion of design and construction services to secure additional flexible resources to execute our work program, the magnitude of which may fluctuate from year to year. Each business unit is responsible for monitoring and managing their suppliers within the framework of their negotiated contracts. Supplier scorecards, key performance indicators, and regular interval meetings are used to manage vendors delivering goods and services. We monitor the quality of the goods and services delivered both internally and externally through internal groups or external contractors hired to perform quality audits of the services rendered.


Toronto Hydro 2014 CR Report_FINAL
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