Sustainability : Supply Chain Management

Supply Chain Management


The Supply Chain Management (SCM) function in Jordan is implemented by a local team, which is part of the AES Europe Supply Chain Management team. Europe is a Strategic Business Unit of AES, combining the efforts of teams based in Bulgaria, Jordan, Kazakhstan and Northern Ireland.

Our vision as a team is to contribute to the competitive advantages of AES Europe through the delivery of integrated and sustainable energy solutions.

Since mid-2013, AES Jordan has started several major initiatives to reduce complexity, excel our performance and enable better results for the company. Our supply chain management team was split into two main streams Europe buyers performing centralized sourcing for most of the high value deals and local plant buyers realizing regular daily deliveries.

The AES Supplier Management procedures observe the principles of transparency and reflect our corporate values. Our first value globally is safety first. Therefore we require all our contractors to show their safety records, to be instructed in accordance with local legislation and to accept and strictly follow our world class company safety policy.

Along with safety standards, suppliers are required to comply with local legislation on environmental and occupational health. The AES procedure for selection, appointment and management of contractors actually increases their awareness in each of these areas.

The procedure contains several documents:

  • Selection Appointment and Management of Contractors
  • Bid Questionnaire
  • Questionnaire for environment risk assessment
  • Hazard Assessment Form
  • Bid Evaluation Form
  • Contractor Safety Rules
  • Contract Monitoring
  • Contractor Handbook

AES works transparently and facilitates market competition. We implement procedures that enable us being objective during our tenders. We evaluate the bidders taking into account certain aspects of their proposals such as Safety, Health, Environment, Security, Technical Parameters, Alignment, Cost and Execution. We have developed a strict Compliance Procedure that reflects our respected position of a NYSE listed company. The Compliance Procedure ensures that the highest ethical and legal standards are upheld in all our business transactions. The Procedure includes a “know your business partner” program which requires AES to conduct due diligence on every prospective business partner and/or vendor prior to entering into a business agreement. To that end, the prospective business partner and/or vendor:

Provides completed and verified by signature Due Diligence Questionnaire.

Acknowledges our Code of Conduct – From words to action.

Provides a certificate of origin or certification.

We also use the service of a commonly accepted third party to check the vendor for possible reputation and legal risks.

The AES Europe Supply Chain Management team recognizes the need for a sustainable approach in every business decision taken. Thus, we are constantly striving for excellence and develop equally well our internal and external procedures. We apply specific key indicators for assessing our performance measures and tracking. AES has a global excellence program called APEX (AES Performance Excellence) and our staff has been trained in Six Sigma methodology for business process improvement developed by Motorola in 1986. We are a risk aware team that performs a detailed analysis of costs and appreciate the unique qualities of our suppliers.

Supply of goods and services at competitive price is essential for the AES operation and maintenance. Compliance with all corporate requirements and procedures creates a sense of trust and confidence in our partners.