Vonovia’s procurement activities are split primarily into construction services, construction material and material costs (indirect materials and services).
When it comes to construction services, the supplier qualification process is a very careful one based on clearly defined criteria. One important aspect from our perspective is that our suppliers and subcontractors not only accept our Business Partner Code, which we revised and expanded in 2018, as binding, but also put the principles set out in the Code into practice on a daily basis at Vonovia’s construction sites. The Code stipulates, in particular, that corruption must be combated, that illicit employment must be ruled out, that the legal minimum wage must be paid and that valid German regulations on occupational safety, employee rights and the environment must be observed. We also make sure that demolition materials and rubble are disposed of in a professional and environmentally friendly manner and that construction periods are kept as short as possible.
By predominantly purchasing construction materially centrally via Vonovia’s procurement department, we can keep the risk of hazardous or poisonous substances being used at a minimum. In order to protect our employees and tenants alike, we ensure material safety using the systematic TÜV Rhineland Toxic Materials Management System (TOGs®). All information is recorded, evaluated and documented centrally in an online toxic materials register. This provides us with an ideal basis within our own craftsmen’s organization for conducting risk assessments and developing operating and handling instructions. We are also collaborating with our suppliers to further develop our standard materials on an ongoing basis in order to ensure both their safety and the provision of comfortable homes for our customers. The introduction of a flush-to-floor shower area in 2018 is one successful example of this.
The procurement team is working hard on efforts to standardize materials and services in order to optimize supply and ordering channels. More than 80% of Vonovia’s indirect materials are supplied using an e-catalog system and delivered to the various Vonovia locations after being bundled. Efforts are made to raise awareness among all partners with which framework agreements have been concluded for indirect materials and services regarding the handling of confidential or inside information, data protection aspects or conflicts of interest.