Integrated report 2019
Logo Budimex

Supply chain

GRI: [ 102-8, 102-9 ]

The business model in which we act as a general contractor means in practice outsourcing many activities and operations and simultaneous coordination and control of the work of a number of subcontractors and suppliers. It is a network of partners who act to succeed through cooperation and coordination by our engineers and managers. At the same time, the most important actions and decisions, which means those based on key competences, remain within our scope. This way of operation allows flexible resource management and adjustment to current needs. It also allows us to react to changing market situation. It offers the possibility of adjusting resources to the size and nature of the order portfolio. All this ensures in higher cost efficiency. In total, Budimex itself cooperated with 17,198 suppliers in the past year. At the same time, due to the diversified characteristics of works which change in the course of a project, the number and specialisations of the involved subcontractors and personnel also change.

However, such business model means greater responsibility for the operation of subcontractors’ networks. As a result, we feel obliged to verify the external entities performing works on our behalf. This is important in terms of quality and safety of the works. Long-term relationships based on mutual trust and up-to-date knowledge about suppliers who provide services on the market constitute the company’s unique capital. Thus, on the one hand, supply chain management requires effective selection of partners and their ongoing monitoring and, on the other hand, evaluations, providing feedback, and training for persons working on construction sites. Within this scope, the ability to support suppliers in identifying and reducing shortages is also important.

Our supply chain includes, apart from the subcontractors on construction sites, also the entrepreneurs who supply our companies with basic materials and raw materials and who provide selected specialist services. These include, among others, suppliers of steel and reinforcements, concrete, aggregates and cement, road barriers, railway rails, road bitumen, or fuels. We also use external transport and security services.