Good procurement practices

Timely delivery of high-quality materials and services and regular cost optimisation are among our top priorities.

PKN ORLEN aims to become the best purchasing organisation in the fuel and power industry of Central and Eastern Europe. Timely delivery of high-quality materials and services and regular cost optimisation are therefore among our top priorities. PKN ORLEN’s relationships with suppliers are governed by its procurement policy. One of the main documents of the procurement policy is the Procurement Guide serving as a basis for transparent vendor selection. Since May 2013, all procurement procedures at PKN ORLEN have been initiated at the CONNECT Procurement Platform. The platform collects requests for proposal from 15 largest Group companies. This innovative e-procurement system provides quick, systemised and transparent information on the procurement processes at the ORLEN Group. Our tender submission process is in electronic form only, which greatly simplifies the procedure and shortens the procedure.

In 2014, PKN ORLEN carried out the first satisfaction survey for its suppliers and trading partners to learn more about their needs and expectations related to procurement operations.

The 'Core Values and Standards of Conduct of PKN ORLEN' are crucial to the operations of the Procurement Area. In these operations, we are guided by the values and principles laid out therein.

One of the top priorities of the Procurement Area is to build partnership-based relations with reliable suppliers and to develop a model of efficient cooperation with internal clients by seeking to meet their needs and declaring willingness to offer any help required.

In 2014, a conference for suppliers was held to present the procurement strategy and procurement processes applied at PKN ORLEN, as well as to acquaint the suppliers with the newly implemented CONNECT purchasing platform. The event included discussion panels for individual purchase categories, which was an opportunity for both PKN ORLEN and its partners to better understand their respective expectations. After the conference, the participants completed questionnaires, and their responses were sent to the Procurement Unit with a view to improving the cooperation between the Company and its partners in the supply chain. As many as 98% of the participants found the meeting useful for further cooperation with PKN ORLEN and expressed their willingness to take part in future conferences.

PKN ORLEN cooperates with a group of carefully selected suppliers. We attach particular importance to engaging with local businesses, based in the County of Płock and the Province of Warsaw, thus implementing corporate citizenship principles and supporting the development of local markets. Spending on products and services offered by local suppliers, i.e. companies based in Płock, represents 3% of PKN ORLEN’s total spending. Working with suppliers from our immediate environment, we value their knowledge of the local markets, proximity and flexibility as well as the cost-cutting potential.