BBVA Bancomer/2018 Annual Report slide image

BBVA Bancomer/2018 Annual Report

Under the supplier approval section of the Procurement Model, suppliers are asked to complete a questionnaire on matters relating to social responsibility. The corporate methodology for addressing reputational issues was also strengthened in 2018, since this is a decisive factor when appraising suppliers. Of the total number of active suppliers in 2018, 96.74% were Mexican, 1.28% were Spanish, 1.18% from the United States and 0.80% from other countries. Increase of 115% in the number of suppliers to have undergone the approval process in comparison with 2017. In keeping with current best industry practices, BBVA Financial Group has set up an electronic communication model with its suppliers to provide comprehensive management of the procurement cycle through the "Adquira" platform, which is integrated in the Global Procurement System (GPS) technology. The use of this portal is key for BBVA to achieve improvements to internal control of expenses, streamlining traceability, operation transparency, flexibility and meeting Supplier payment deadlines. The GPS supports every stage of the procurement process at the BBVA Group, from approval of the budget through to registration and accounting of invoices. Supplier approval The supplier approval process is essentially a review, conducted in accordance with internal rules and regulations, that suppliers of goods and/or services to BBVA Bancomer must undergo, based on the following segmentation: 1. The supplier's level of annual expense, using as a reference the billing with the supplier and/or the amount of contracts awarded or expected to be awarded. 2. The potential impact on the business of the services and/or products to be delivered by the supplier. 3. In new negotiations between suppliers and the Bank, where the relationship has already reached at least two years. The following points are checked as part of this process: 510 $ B 0000 Legal Financial Tax Labor Reputational Technical Regulatroy Internal control Corporate Social Responsibility (CSR) 67 Of total suppliers that underwent the approval process in 2017, 97% were approved.
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