"The role of a procurement department is not to buy more cheaply, but to buy better in terms of cost, quality and risk.
"This space is designed for suppliers who would like to learn about BNP Paribas’ procurement policy. The attached Guidebook will provide you with details about the procurement organisation within the Group and our operating rules. All our procurement operations are designed to optimise the Group’s costs, while ensuring that suppliers are treated fairly.
The signing of the charter between the Credit Mediation Department and the CDAF (Compagnie des dirigeants et acheteurs de France – The Company of Executives and Buyers in France) on 28 June 2010 formalises procedures that are already widely established within the Group."
Jean Louis Marlier, Head of Group Procurement
The procurement organisation at BNP Paribas
The Group procurement function: operational support and coordination
This central function defines the norms and standards for procurement and manages the performance monitoring activities and organisational development of procurement operations within BNP Paribas. It globalises procurement within the Group and also negotiates some purchases directly, while providing operational support to buyers in the various business lines and Group entities. It works on procurement category strategies by promoting the sharing of best practices and expertise. “Tactical” purchases are the responsibility of the procurement departments within the business lines and functions.
Each entity is responsible for managing and optimising its external costs. However, local buyers usually work in conjunction with a global lead buyer with expertise in a particular procurement category. This collaboration allows an overall optimisation of costs. Buyers not only use price negotiation levers, but also work upstream to adjust and accurately qualify the entity’s needs.
The Executive Procurement Committee, the decision-making body with respect to procurement at Group level, determines the broad guidelines in the areas of Governance, Human Resources, tools and focus areas with regards to cost optimisation.
Suppliers are selected by BNP Paribas and cannot directly apply to be included in the preferred supplier list. BNP Paribas conducts regular reviews of its panels of suppliers in consultation with the Group's business lines. The objective of these reviews is to jointly assess the quality of the services sold by its suppliers, as well as to seek out potential new suppliers.
Business lines can adapt the Group’s supplier panels: 80% of purchases must be directed to the panels, while the remaining 20% enables the business lines to use niche suppliers or to test other services.
Ethics and professional conduct
The rules of conduct governing relations between employees of the BNP Paribas Group and its suppliers establish rules of professional and personal behaviour:
- suppliers shall be treated in a fair, transparent and neutral manner
- confidentiality is obligatory
- situations of conflict of interest must be declared
- during sensitive periods, employees who may take part directly or indirectly in the procurement decision-making should strictly refuse any gift, invitation or other benefit, regardless of the amount
- other than during the sensitive periods referred to above, an employee may accept a gift provided that its value and / or frequency are reasonable; in other words, provided that they are not disproportionate relative to usual business relationships and do not exceed a ceiling established by the entity’s compliance department
Integrating CSR into the procurement process
In July 2010, the Group procurement function integrated a standard CSR questionnaire in their calls for tender. This questionnaire includes 9 questions that can be used to rate vendors with respect to their:
- Signature of the Global Compact
- Environmental policy
- Social policy
- “Responsible Procurement” policy
The procurement documentation relating to CSR was reviewed at the beginning of 2012:
- The Group’s Procurement Norms include the commitments and the practices to be respected in this field
- “CSR Commitments for BNP Paribas suppliers” point out the principles governing BNP Paribas’ procurement and the expected commitments of the suppliers. These have been incorporated into the template for calls for tender. Failure to respect “essential” commitments may be ground for removing a supplier from BNP Paribas’ preferred supplier list.
CSR Procurement training for all buyers: since 2010, all training courses include the concepts of responsible procurement.
To find out more :
Charter of inter-company relations
The Charter of inter-company relations (within the Ministry of the Economy, Finance and Industry) and the CDAF (Compagnie des dirigeants et acheteurs de France – the association of Buyers in France) commits the large contractors to work on improving their relationships with their suppliers, especially when these are small and medium-sized enterprises (VSE-SMEs).
By signing the Charter on 28 June 2010, BNP Paribas demonstrates the will of the Group to respect the best practices identified and to exercise its responsibilities towards its suppliers in an environment of mutual trust, based on the full knowledge and respect for each party’s rights and duties.
The Charter lists 10 commitments for responsible procurement, among which: guarantee a fair financial treatment to suppliers, reduce the risk of mutual dependency between contractors and suppliers, evaluate the total cost of ownership, incorporate environmental concerns…
In accordance with the Charter commitments, BNP Paribas has nominated an internal mediator who can be contacted by the suppliers, should a disagreement with the local buyer be pending, the aim of this being to favour mediation against litigation.
BNP Paribas Internal Mediation:
Médiateur Interne Fournisseurs BNP PARIBAS
C/O ITP CCPRO
(ACI : CMB04A1)
257, rue de Paris
Email adress: PARIS ITP MEDIATION INTERNE FOURNISSEURS[at]bnpparibas[dot]com