Integrated issue management model in its supply chain

BUSINESS: 381 PRACTICES
INTERAMERICAN was founded in 1969. Ιn 2001 the company was incorporated in one of the top European financial groups, ACHMEA. INTERAMERICAN is a leader in the insurance market in Health and Assistance Services, whilst is being included among the top companies in Life and Pension insurance sectors.
Read more: www.interamerican.gr
The Company recognizes the risks inherent in the entire scope of the supply chain. For this purpose, INTERAMERICAN strives unobtrusively to ensure the proper and sustainable operation of every service and/or product it offers, as well as every partnership it enters into. In particular, the Company recognizes the risk of a possible collaboration with suppliers who do not comply with international standards of sustainable development, but also who do not adopt common policies and values with it. The appearance of such risks may bring about negative effects both on a financial (e.g. through the imposition of fines) and operational (e.g. interruption of collaborations with suppliers) level as well as on a non-financial level (e.g. impact on reputation and the credibility of the organization. Therefore, completely responsible management of the supply chain is both a necessary condition for the sustainable development of INTERAMERICAN, as well as a competitive advantage over similar companies. In recent years, the Company has taken the necessary steps to redesign its logistics strategy chain, having developed a more modernized overall management model.
The appearance of risks in the supply chain can have negative effects both on a financial (e.g. through the imposition of fines) and operational (e.g. interruption of collaborations with suppliers) level as well as on a non-financial level (e.g. impact on reputation and credibility of the organization. Therefore, any relevant actions and measures taken by the company in this direction are intended for suppliers and partners in service or product purchase categories. The most important categories are:
In recent years, the Company has proceeded with the necessary actions to redesign its supply chain strategy, having developed a more modernized overall management model. In the aforementioned direction, we have established a central Purchasing and Procurement Department, anticipating the further optimization of internal operations regarding the efficiency of supply chain structures. The specific department reports directly to the Financial Director of the Company and has undertaken the gradual gathering and processing of all relevant procedures defined by the Company. The Purchases and Procurement Department, together with the Procurement Committee and the Executive Committee have overall responsibility for managing all of supply chain processes, with objectives which are summarized in the following:
Regulation of Purchases and Supplies
The Purchases and Procurement Regulation, which was approved and entered into force in 2014, records and codifies the rules that regulate the procurement of any material or service to meet the needs of all INTERAMERICAN subsidiary companies. The regulation is posted on the internal company website, with the aim that every employee can refer to it and be informed at any time. The goal is to constantly have corrective additions based on ever-increasing needs and developments.
For the implementation of the model, the implementation of the appropriate supply chain management procedures and the selection of the final supplier, the competent bodies are the Purchases and Procurement Department and the Procurement Committee. At INTERAMERICAN procurement is conducted in the following three ways:
In 2015, the "Supplier Code of Conduct" was incorporated into the Purchases and Procurement Regulation, which is an integral part of any contractual cooperation between INTERAMERICAN and its suppliers. By signing an agreement with INTERAMERICAN, each supplier of products and services must respect and align with:
INTERAMERICAN systematically monitors suppliers' compliance with the above contractual obligations. Failure to comply with them will result in the termination of their cooperation with the Company. The supplier's contractual obligations are described mainly with SLAs (Service Level Agreements) which have been formulated in the contract in a detailed manner, and which are monitored by the business owner of the project on a daily basis and in collaboration with the Company's Procurement Department when required ( e.g. in some escalation, major issue, etc.).
Developing responsible relationships in the supply chain
INTERAMERICAN is governed by the Code of Conduct and Ethics, as well as the Integrity and Anti-Fraud Policy, with the aim of becoming the most trusted insurance company and always with the client's best interests in mind. The corporate culture of transparency and integrity applies to all employees and partners of the Company, without exception. For this reason, INTERAMERICAN promotes collaborations exclusively with partners who are committed to the same principles and values as it, in terms of combating all forms of fraud and corruption such as conflict of interest, facilitation payments, bribery, money laundering and financing of terrorism, tax evasion , internal and external fraud. The parties undertake not to accept any type of corruption and, in addition, they are bound by the rules of professional ethics as described in the PEE of the Council of Ministers 86/5.4.2016 and included in the new draft law adopting the Directive on IDD Insurance Mediation.
Green Supplies
INTERAMERICAN during the process of selecting and evaluating its suppliers, in addition to economic and technical criteria, also applies criteria based on the principles of green procurement.
These criteria concern, on behalf of suppliers:
the existence of a certified Environmental Management System (ISO 14001 or EMAS),
in the implementation of environmental policy, in compliance with environmental legislation,
in the implementation of initiatives and commitments regarding the protection of the environment.
Human Rights in the Supply Chain As mentioned above, the Company's partners are selected according to strict criteria. Nevertheless, in the agreements and contracts that the Company concludes with them, it does not include special terms regarding human rights. Respect for human rights is protected by Greek and international legislation and, by extension, the agreements that the Company enters into are subject to the current legislative framework.
The relevant actions carried out with the aim of the ever-increasing optimization of INTERAMERICAN's supply chain processes, indicatively concern:
During 2018 INTERAMERICAN cooperated with more than 3,340 suppliers in service or product purchase categories. The most important categories are:
The Company's expenses for the purchase of products and services in 2018 exceeded 72 million euros.
For the Organization, cooperation with local suppliers is a priority in the context of strengthening INTERAMERICAN's contribution to the national economy and the development of local societies. In this context, in 2018 the percentage of cooperating suppliers based and operating in Greece was over 85% (of the total).
During 2018, there were no substantiated complaints about the unlawful use of the personal data of the Company's clients/insureds, employees and suppliers.
For INTERAMERICAN, cooperation with local suppliers is a priority in the context of strengthening INTERAMERICAN's contribution to the national economy and the development of local societies. In 2018, the percentage of cooperating suppliers based and operating in Greece was over 85% (of the total).
The Purchasing and Procurement Department, together with the Procurement Committee and the Executive Committee have overall responsibility for managing all supply chain processes,
INTERAMERICAN's Purchasing and Procurement Committee is an independent executive body of the Company. It consists of one (1) member of the Executive Committee, four (4) regular members elected by the Executive Committee, as well as a lawyer appointed by the Executive Committee, without voting rights.
Based on the relevant internal regulations, the committee has been authorized to receive all the necessary data required for the examination of material-service purchase issues of the Organization's companies with a cost of more than 15,000 euros and to either give an opinion on them or promote its detailed proposals to the higher executive bodies of INTERAMERICAN (e.g. Executive Committee, Board of Directors). In addition, the Purchases and Procurement Regulation, which was approved and entered into force in 2014, records and codifies the rules that regulate the procurement of any material or service to meet the needs of all INTERAMERICAN subsidiary companies.
The Purchasing and Procurement Department, together with the Procurement Committee and the Executive Committee, have overall responsibility for managing all supply chain processes.
The responsible management of the supply chain is both a necessary condition for the sustainable development of INTERAMERICAN, as well as a competitive advantage over similar companies. The benefits for the organization are summarized as follows: