Performance Management

Procurement Management

The Company and its subsidiaries and affiliates introduced a unified industry procurement standard in October 2009. The Company's procurement tender committee is simultaneously an authorised body for organisation and implementing procurement procedures for its subsidiaries and affiliates.

240

procurement procedures held in 2011

In 2010 about 240 procurement procedures were held worth in total over RUR 1,600 mln (including procurements based on procedures from sole supplier).

Introduction of procurement procedures saved the Company RUR 35.5 mln (a difference between the marginal price and the contract value).

An average value of competitive procurement efficiency equals 12.8%.

The competitive procurement procedures were developed in the Unified industry-wide procurement system based on SAP SRM. The electronic procurement system is held at the electronic trading facilities accredited by the State Atomic Energy Corporation ROSATOM.

0

complaints
in the course of competitive purchasing procedures

The figure for procurement transparency (ratio of procurements made through competitive procedures to total procurements) and the share of electronic procurements exceeded the target values and amounted to 88.99% and 20.06% respectively in 2011. In 2012 the Company plans to hold over 60% of procurements electronically.

In the reporting period no complaints have been filed regarding the violations in the course of competitive procurement procedures organised by JSC "TECHSNABEXPORT".