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Toronto Hydro CR Report 2016

INTRODUCTION MATERIALITY AND STAKEHOLDER ENGAGEMENT OUR CITY OUR OUR PEOPLE ENVIRONMENT GLOSSARY AT A GLANCE PROCUREMENT PRACTICES Corresponds with Toronto Hydro’s Material Issue: Materials Selection and Usage Supply chain Toronto Hydro extends its sustainability program to its vendors and contractors through the consideration of sustainability measures during the selection process. A dedicated team is responsible for facilitating the timely and cost-effective procurement of services, materials and equipment. This team is also responsible for maintaining the inventory to support uninterrupted work and managing material handling costs. Each year, Toronto Hydro procures, warehouses and distributes approximately $80M to $90M in assets, and executes an average of 200 contracts for the supply of goods and services. Toronto Hydro manages the supply chain by sourcing reputable suppliers, monitoring their performance to ensure that they meet their contractual obligations, and generating the purchase orders that underlie each agreement. Additionally, Toronto Hydro has 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 communications, legal, human resources, facilities maintenance, engineering, and financial divisions • Contractors who provide various construction and electrical distribution services to complete the 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 the industry sell or make their products available through distributors and do not deal directly with utilities. In some situations, design and construction services are outsourced to secure additional flexible resources to execute the work program, the magnitude of which may fluctuate from year to year. Each business unit is responsible for monitoring and managing the suppliers under the framework of the negotiated contract. Supplier scorecards, key performance indicators, and regular interval meetings are used to manage vendors delivering goods and services. Quality of the goods and services delivered are monitored through internal groups or external contractors hired to perform quality audits of the services rendered. OUR CITY I TORONTO HYDRO 39 G4-12


Toronto Hydro CR Report 2016
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