Ukrenergo became the first public company in Ukraine to be awarded the certificate of its procurement system qualification to CIPS standards — the U.K. Chartered Institute of Procurement and Supply.
CIPS standards are globally recognized criteria used for the assessment of procurement efficiency and transparency by such entities as the UN, World Bank, IMF, Google, Microsoft, etc. In turn, the Primary Award has been specifically developed by CIPS with the European Bank for Reconstruction and Development (EBRD), which assesses the compliance of key procurement processes with global standards, national legislation, and the code of ethics. It certifies the resilience of the procurement system and its immunity to corruption risks.
Ukrenergo initiated the certification of the procurement system according to CIPS standards, and to that effect received the grant support from the EBRD as part of the Ukrenergo Transmission Network Modernisation Project.
CIPS evaluates the public procurement system based many parameters, including:
- level of attention to procurement by the company’s management, the degree of its responsibility for the company’s procurement operations;
- procurement being an essential direction of the company’s development strategy, and continuous updating and development of this strategic direction;
- availability and quality of clear public procurement policy in the company, a code of ethical conduct of its employees;
- clearly defined objectives of the procurement function and their effective accounting;
- systematic testing and improvement of staff skills;
- transparency and clear regulation of the procurement procedure;
- reliability of performance monitoring, adherence to business plans and strategic goals.
CIPS experts stressed that Ukrenergo’s corporate reform facilitated the significant development and reform of the company’s procurement system. “Changes have included: introducing a Procurement Policy; revising business processes; implementing category management and supporting organisational structure, resulting in measurable improvements in procurement efficiency, cycle time and transparency as well as increasing supplier competition and procurement savings. As a result, Procurement and Supply Chain is a well-recognised centralised internal function, with the head of the function, Maryna Bezrukova, being a respected member of the Management Board. The project was professionally managed by Maryna, who provided timely access to the broader team members, ensured that the project progressed according to plan, and supplied all required supporting evidence in a timely manner. The project took 5 months from start to finish (April to September), which is an outstanding turnaround for a Primary Award level client and demonstrates a high-level of client commitment”, says the CIPS expert report.
“The certification of Ukrenergo’s procurement system according to CIPS standards is a significant achievement for our company. The basic principle on which our procurement system resides is to establish clear and structured processes in order to prevent mistakes and corruption risks. For a large company this is extremely important because it is impossible to make effective decisions intuitively, as is often the case in small organizations, and we need to always look after the transparency and efficiency of our decisions. For this reason, in order to continue improving Ukrenergo’s procurement system, we plan to start working as soon as possible towards the second level of CIPS certification — the Standard Award. This will testify to the further evolvement of our procurement system, perfection of its efficiency, and improvement of the anti-corruption control”, stated Maryna Bezrukova, Member of the Management Board of NPC Ukrenergo.
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