Procurement

MOL Group is committed to implement the principle of „product stewardship” on the highest level in its procurement processes through the quality and parameters of the purchased products and services. Consequently, the purchased products should satisfy the strictest quality criteria.

The Procurement organisation is responsible for securing the high quality services, on the expected high levels, for MOL Group units, as internal clients. The Procurement organisation was designed and established in such away that it can give efficient support to the Group in implementing this function: every procurement category is rendered to a senior or leading procurement officer, and he is responsible for all procurement transactions in a given area and manages and controls the works of sub-ordinate procurement officers, thus facilitating the most favourable technical and business terms and conditions for MOL.

This structure can ensure the required degree of transparency, efficiency and dynamism in respect of reactions onto market conditions.

1.     Suppliers Relations Management:

We have launched and rolled out new initiatives on the past 1-2 years in MOL aiming at further developing cooperation with suppliers and facilitating the implementation of MOL’s efforts related to sustainable development. We have the following key initiatives:

• We will prepare a standard criteria system for activities with risk exposure. We wish to ensure trouble-free cooperation and to filter out incompetent suppliers prior to the selection process, thus we will hold a preliminary control of the relevant compliance criteria.
• Development of the HSE criteria system and ensuring compliance with such criteria in MOL for suppliers offering services for HSE-critical operations (pre-contracting competence analysis, and on-site audit held during the delivery of supplier’s services).
• Further development of the presently applied suppliers’ evaluation system, including that this evaluation system will be supplemented with HSE criteria. With this we will support the successful development of suppliers’ performance in the area of HSE-based expectations.
• We will organise annual Suppliers Forum for our potential suppliers, where two-way communication will be secured, in addition to presenting MOL expectations.

2.     Local suppliers

MOL at present does not have a general guideline which sets out statutory rules for applying local suppliers in areas of major operations (Hungary, Slovakia, Romania, Austria, Croatia, and Serbia). However, existing technology, license (e.g. in IT services) or non-stop availability (e.g. for maintenance materials) may require contracting of local suppliers.

Ratio of local suppliers in the countries mentioned above is nearly 30% of the total procurement value.