Supply chain management (suppliers, contractors and partners)
Downer, including Spotless, has over 30,000 suppliers in Australia and New Zealand. The chart shows the percentage of spend by supplier category across the Downer Group.
Downer relies on the relationships with our supply chain to successfully deliver work for our customers. We want our suppliers and contractors to share our values and reflect our expectations when doing business with and for us. Downer undertakes a comprehensive prequalification process to ensure our suppliers and subcontractors meet our high standards of business conduct. This includes background checks on financial health, health and safety standards and policies, human rights policies, environmental policies, and adherence to Downer’s terms and conditions.
Infrastructure markets are dynamic, constantly changing and developing. Demand for social and economic infrastructure is growing rapidly and governments are seeking new ways to meet that demand. Australian and New Zealand Governments have recently seen urban infrastructure as a key driver of job creation in the economy. Government and the private sector are focusing on innovation for greater efficiency with infrastructure delivery. The recent infrastructure boom and delivery of ‘mega’ projects has challenged traditional procurement models due to the scale and complexity of the infrastructure required to be delivered. This has created more opportunities for joint venture and partnership arrangements.
Downer enters into joint ventures and partnering arrangements with other companies that are committed to doing business in a responsible and ethical manner. Unfortunately, in FY19 one of Downer’s partners, German company Senvion, went into administration. Downer partnered with Senvion in the delivery of Stage 1 of the Murra Warra Wind Farm located near Horsham in central Victoria. Senvion was responsible for the manufacture, transport, erection and commissioning of the project’s turbines while Downer is responsible for the balance of plant works. Following this unfortunate event, Downer has undertaken a comprehensive review and adjustment of its risk management processes, particularly around joint and several liability. For more information refer to Downer’s 2019 Annual Report.
