Entergy 2013 Annual Report Download - page 45

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Entergy Corporation 2013 INTEGRATED REPORT 44
ECONOMIC
Providing Service to Our Customers
Supply Chain Management
In providing power to our customers, we purchase approximately $2.9 billion annually in
materials and services. A robust, sustainable supply chain is essential to our ability to serve our
customers. Our management approach to maintaining and further developing a healthy supply
chain includes a defined supplier code of conduct, initiatives to build a more sustainable supply
chain and a program for encouraging and facilitating greater supplier diversity and programs.
Our supplier code of conduct sets ethical and compliance standards of behavior for companies
that work with Entergy. All suppliers are expected to conduct business in a manner consistent
with our code of conduct.
BUILDING A SUSTAINABLE SUPPLY CHAIN
Supply chain sustainability initiatives are focused on improving the safety and environmental
performance of our suppliers. We have incentive and non-incentive scorecards that target
multiple performance indicators for the company and our key suppliers, including sustainability-
related measures. Although specific scorecard measures differ based on the services and
products provided, standard metrics used to align contractor performance with company
objectives include safety, budget, radiation protection, schedule, reliability and human
performance. In general, criteria are assigned to each of these metrics and the vendor may
meet target, exceed target or fall below target. Financial incentives and disincentives are
tied to targets.
SUPPORTING SUPPLIER DIVERSITY
Our Entergy supplier diversity and development initiative is designed to ensure the inclusion
of a diverse base of suppliers capable of meeting the company’s various procurement needs.
Through this initiative, Entergy gains a supplier base that reflects the communities we serve
and benefits from higher quality products and services resulting from increased competition
and a higher level of service and flexibility. Since its inception in 1987, Entergy’s supplier
diversity initiative has accounted for more than $3 billion in contracts and purchase orders
awarded to diverse suppliers.
“Our Entergy supplier
diversity and
development initiative
is designed to ensure
the inclusion of a
diverse base of
suppliers capable
of meeting the
company’s various
procurement needs.”
“Since its inception
in 1987, Entergy’s
supplier diversity
initiative has accounted
for more than $3 billion
in contracts and
purchase orders
awarded to diverse
suppliers.”