Sorgenia Bioenergie - The Strategic Approach - Building a Unique Procurement Function

THE STRATEGIC APPROACH

PROJECT PARTNER

BUSINESS INTERVIEW

THE STRATEGIC APPROACH

Simona Izzo, CPO at Sorgenia Bioenergie, shares her thoughts on procurement strategy, technology, key partnerships, sustainability, and gender equality.

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SIMONA IZZO JOINED SORGENIA BIOENE DECIDED TO LEAVE A WELL-KNOWN INT MARKET SEGMENT TO CHALLENGE HERSEL WITH HER A WEALTH OF EXPERIENCE IN CH PROCUREMENT DEPART

orgenia Bioenergie, with its three renewable energy power plants, potential new future acquisitions and a plan to further integrate and develop its bioenergy segment, is the current Italian leader in the production of electricity through vegetable biomass. The company, which is part of Sorgenia Group, today the leading Italian private energy operator with 4.4 GW of installed power and 400 MW of renewable plants in development phase, is targeted towards reaching the most advanced innovation, reliability and sustainability in its market segment. In order to guarantee an efficient and effective energy production, it is working on identifying any 4

ERGIE IN SEPTEMBER 2019, WHEN SHE TERNATIONAL COMPANY LEADER IN ITS LF WITH A START-UP COMPANY, BRINGING HANGE MANAGEMENT AND IN CREATING A TMENT FROM SCRATCH.

opportunity for promoting the continuous improvement of the company.

Simona was tasked with the job of setting up one procurement function after the fund F2i, Sorgenia’s main shareholder, completed the acquisition from different owners of three power plants. She first focused on introducing the processes and procedures necessary to provide a standardised way of working. Simona explains, “We had three different power plants, which did not speak a common language, so it was important to create one unique procurement department with a clear organisation and its 5

own global vision. We carried out an in-depth spend analysis to pinpoint the most predictable category groups, identifying the most suitable procurement strategy for each category group, and the most effective synergies arising from the management of all the power plants. I tried to make the processes leaner and simpler, while the importance of an ‘early involvement’ approach was also key, from the budget through to post-contract. I selected the right suppliers to work with us on supporting our internal clients and in facilitating the change.”

Simona’s golden rule when creating any new function is to be consistent, as she explains, “Consistency is extremely important, meaning that what you promise, you must deliver. To do so, you need to understand the priorities and that they are delivered according to the requirements and expectations of the internal clients. As already successfully achieved in the past, I have shaped the organisation to meet this goal. The organisation is composed of several buyers, each responsible for specific category groups, so the power plant has a clear understanding of each one’s responsibilities, and the buyers have an in-depth knowledge of the market they 6

are assigned and the category groups they are managing. In terms of procurement strategy, supporting the internal clients from the start of the process, when the budget is defined, is vital, by acknowledging all their requirements in advance, and understanding all the risks involved to implement the most effective strategy, guaranteeing the signing of the contract in accordance with internal client requirements. Needless to say, an in-depth knowledge of the suppliers is a key component of an effective procurement department.”

So, does technology play a key role in an effective procurement department? Simona answers, “Yes, the very first step is to start with the introduction of new tools to harmonise the process of assessing suppliers.

In 2019, we selected the JAGGAER vendor management solution to facilitate a more structured management of the approved suppliers list based on category groups. The tool is composed of two main areas of assessment: vendor category assessment (ex-ante) and performance assessment (ex-post). We first select the best suppliers via a questionnaire containing 16 KPI (i.e. financial data, sustainability, geographical 7

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perimeter, certifications, training, compliance etc). We constantly monitor their profiles to anticipate any possible critical issues, and guarantee the transparency of the whole process from supplier onboarding through its performance assessment. The tool is easily accessible. Any data and all assessments related to a specific supplier are shared internally to provide a comprehensive overview of its profile, moving from a subjective opinion to an objective assessment. A specific area of the assessment addresses sustainability. We want to collaborate with suppliers which are more responsive to this specific issue.

“IN 2019, WE SELECTED THE JAGGAER VENDOR MANAGEMENT SOLUTION TO FACILITATE A MORE STRUCTURED MANAGEMENT OF THE APPROVED SUPPLIERS LIST BASED ON CATEGORY GROUPS” 9

“I WANT TO CONTINUE TAKING ON NEW ROLES WHERE I CAN REINVENT MYSELF. I YEARN FOR MORE CHALLENGING PROFESSIONAL ADVENTURES, AS I LIKE TO TRY NEW THINGS. FOR ME, I AM HUNGRY TO LEARN, AND I AM NOT SCARED OF NEW CHALLENGES. I JUST WANT TO PLAY MY OWN GAME, WHICH IS WHAT ALL WOMEN SHOULD STRIVE TO DO” Simona Izzo, CPO at San Marco Bioenergie

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“The second area is the performance assessment. We assess, via a virtual team, the performance of the suppliers once a contract is awarded. Therefore, we encourage continuous improvement of our suppliers, identifying their strength and their weaknesses to mitigate risks and possible non-compliances in the future. JAGGAER vendor management has thus proven to be extremely successful, enabling us to have an in-depth knowledge of our supplier lifecycle, which is constantly updated. When assessing and selecting suppliers, we do have in mind a few targets which are paramount: innovation,

sustainability, flexibility and speed.”

A key partner that has been pivotal in helping Sorgenia Bioenergie to innovate is GAP – Gruppo Piantoni. Simona says, “Last year, GAP was awarded an important contract for the handling on-site of our biomass.

Since biomass is the fuel we use for running our power plants, the handling of it is a crucial service.

GAP, which for some 60 years has provided services mainly to the steel industry, has broadened its horizons, pooling its competences to support the newly acquired biomass market segment. They

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“LAST YEAR, GAP WAS AWARDED AN IMPORTANT CONTRACT FOR THE HANDLING ON-SITE OF OUR BIOMASS. SINCE BIOMASS IS THE FUEL WE USE FOR RUNNING OUR POWER PLANTS, THE HANDLING OF IT IS A CRUCIAL SERVICE”

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have worked closely with us to enhance the quality of the service, and have been constantly innovating by proposing new equipment to improve their economic and environmental performance”.

of a solution to digitalise the management of all the data relating to the handling of the biomass in the power plants.

Simona says, “We want to become a more digitalised, innovative company. PN6, the supplier selected, is working with us to simplify and accelerate our data management, developing a digital solution to help us to transform.”

Another important project Sorgenia Bioenergie is currently working on is the engineering

As far as speed and flexibility are concerned, a successful collaboration has been

“PN6, THE SUPPLIER SELECTED, IS WORKING WITH US TO SIMPLIFY AND ACCELERATE OUR DATA MANAGEMENT, DEVELOPING A DIGITAL SOLUTION TO HELP US TO TRANSFORM” 15

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consolidated with COREF Engineering. The company is specialised in refractory construction works, specifically on the boilers. Simona adds, “They are a key and reliable partner because they do understand our priorities. To be considered a partner as opposed to a supplier, it is extremely important to be quick and flexible. This is what the market expects. COREF works during the outage of our power plants, where there are real time constraints, or alternatively when there is an unexpected problem.

“COREF WORKS DURING THE OUTAGE OF OUR POWER PLANTS, WHERE THERE ARE REAL TIME CONSTRAINTS, OR ALTERNATIVELY WHEN THERE IS AN UNEXPECTED PROBLEM. THEREFORE, SPEED IS A KEY DRIVER. ANY DELAY WOULD INCUR A HIGH COST. COREF HAS NOT LET US DOWN”

COREF Engineering is a leader company in the Refractory sector, carrying out activities of design, supply and installation of highquality refractory materials, especially in WtE and Biomass cogeneration market.

COREF has also developed its own system of oxy-nitrurate silicon carbide refractories in partnership with the company RATH Gmbh (Tilecor system) to guarantee top quality and performance standards.

As a General Contractor, COREF is also able to carry out other types of services, such as sandblasting and scaffolding assembly, all according to European safety regulations.

COREF is able, with its partners support, to employ over 200 refractory workers, other than a trained team which guarantees technical solutions to the customer, even with short deadlines.

At every level of its staff, COREF adheres to criteria of technical and managerial excellence, in compliance with UNI EN ISO 9001:2015, UNI EN ISO 14001:2015 and UNI ISO 45001:2018 standards.

Since 2019, COREF has also been the Italian exclusive partner for IGS Europe, specialized in in-situ metallic anticorrosive coatings to increase reliability in mission critical equipment.

www.coref-engineering.it

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Therefore, speed is a key driver. Any delay would incur a high cost. COREF has not let us down.”

Sorgenia Bioenergie has also been working on another great project with Vodafone to introduce Biotrack, a new custom platform to support the end-to-end biomass lifecycle. Simona says, “It provides and guarantees a full traceability of biomass sourcing from the pick-up location to the plants. All relevant stakeholders, internal and external, have quick and simple access to all required information, which has been made fully digitalised. After the initial portal released, which has been appreciated and positively adopted by the suppliers involved, we are now enhancing the initial solution, adding a mobile app to strengthen further the tracking process.”

The aforementioned vendor management system allows Sorgenia Bioenergie to select 18

“SORGENIA BIOENERGIE HAS ALSO BEEN WORKING ON ANOTHER GREAT PROJECT WITH VODAFONE TO INTRODUCE BIOTRACK, A NEW CUSTOM PLATFORM TO SUPPORT THE END-TO-END BIOMASS LIFECYCLE”

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its suppliers based on a series of expectations. One such parameter is their approach towards sustainability. Simona says, “We have a strong focus on sustainability and, as a matter of fact, our portal has an area dedicated to it. As a group, we pay attention to sustainability, but this is not enough. You need to ensure your partners are sustainable too. In that respect, when we work with a supplier, we want to know their sustainability strategy, incentivising all those which are sustainable.”

In addition to this, Sorgenia Bioenergie has been consolidating strong partnerships with suppliers to guarantee as far as possible the recovery of the majority of its wood ashes, which are a residual of the burning process.

The company has been exploring new alternative solutions that would be particularly innovative.

Simona says, “Sustainability is a pillar for our company. As a consequence, we have been continuously adapting our strategy to avoid ‘the waste of the waste’ as far as possible.”

Aside from sustainability, another cause close to 20

Simona’s heart is her role in championing women in leadership positions, particularly in procurement.

She says, “There are not many women in procurement, which is a pity.

I am surrounded by men, but I have never considered myself as any different.

We are 51 per cent of the population, but when you compare this representation with the participation in the labour market, there is a drastic reduction. We need to help bridge this gap with proper mentorship. In that respect, men must play a key role as a powerful change agent. In my opinion, change is only possible if there is a full alignment of ideas and targets between the two genders, and equality between partners is an additional enabler for supporting women’s careers. Women should also strengthen their networking to build up constructive relationships and support each other to eradicate the bias of disharmony amongst women. Finally, they should stop questioning their capabilities but learn to ask for new opportunities, being ambitious and visionary. I have recently worked with 21

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a group of friends, both men and women, currently in managerial roles. The idea is to launch a specific project ‘Even-out’ focused on the gender issue and on the necessity of changing the culture. Sorgenia is also actively working on this specific topic, which is an important signal to be pleased of.”

So, speaking of women in leadership roles, where does Simona see herself in the next five years? She concludes, “I want to continue taking on new roles where I can reinvent myself. I yearn for more challenging professional adventures, as I like to try new things. For me, I am hungry to learn, and I am not scared of new challenges. I just want to play my own game, which is what all women should strive to do.”

For further information on Sorgenia Bioenergie, visit www.sorgenia.it/biomasse

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www.sorgenia.it/biomasse

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