Supply chain

Supply chain

Optimizing processes and costs

We are more competitive throughout the electric energy and gas value chain thanks to a team of suppliers who share our philosophy, and with whom we maintain relationships based on respect and collaboration.
  • Five employees working at heights at a compression station.

    GEB contractors building and setting up the new Renacer Substation in Mocoa

  • Four construction workers at the new substation.

    GEB contractors building and setting up the new Renacer Substation in Mocoa

Why is it important?


At GEB, we outsource goods and services that are important for the business. The acquisition of the main supplies, materials and services to cover the activities of our core business is managed by the Sourcing area, which is responsible for GEB’s supply chain, covering planning; supplier selection and performance assessment; logistics; and imports of supplies and equipment, and lastly, warehouse management.

Over the last five years we have been working on the continuous improvement of our strategic sourcing, in order to strengthen our goods and services contracting management, aimed at reducing costs and times and improving business efficiency.

Through an interdisciplinary team we carry out the registration, categorization, assessment, selection and training of suppliers. We work hand in hand with the Contract Supervision department, which is the area responsible for providing support for contract performance, and from which we collect lessons learned to incorporate them in our continuous improvement process.

This management structure has strengthened planning and optimization of processes, reduced costs and strengthened commercial relations and the diversification of suppliers, and has also increased contracting transparency and efficiency.

How we manage it

(102-9) (103-2)

We have structured a Strategic Sourcing Model that covers the policies, rules, contracting and contract supervision manuals, contracting procedures manuals, as well as information systems and supplier relations, which enables us to manage the entire supply chain to drive improvement and thereby become more competitive and ensure responsible, sustainable and effective sourcing.

Our supply chain management is aligned with our corporate strategy through established strategic indicators on fulfillment of organizational objectives to measure the effectiveness of planning and the savings or cost reductions obtained through contracting.

We worked on developing a Supplier Management Program in order to add value to the purchasing process at GEB, through direct relationships with assessed and categorized suppliers for the company’s different purchasing categories, which enables us to foresee contracting requirements by signing prior agreements that clear the way for future contracts.

Strategic Sourcing Model
Strategic Sourcing Model

Click on the image to enlarge.

Integration of the Supplier Management Program and the Sourcing Model
Integration of the Supplier Management Program and the Sourcing Model

Click on the image to enlarge.

(102-9) (Own) The suppliers of Grupo Energía Bogotá and its affiliates in 2020
The suppliers of Grupo Energía Bogotá and its affiliates in 2020 GEB TGI CÁLIDDA CONTUGAS TRECSA ELECTRO DUNAS TOTAL
Total number of suppliers 1,205 214 1,152 846 215 3,930 7,562
Local suppliers 1,115 208 1,052 776 208 3,880 7,239
International suppliers 90 6 100 70 7 50 323
Percentage of local suppliers* 93% 97% 91% 92% 97% 99% 96%

* A local supplier is defined as one whose country origin is the same as that where each company’s main operations are located.

(102-9) Click here for additional information on the suppliers of Grupo Energía Bogotá and its affiliates in 2020
(204-1) Proportion of spending on local suppliers in 2020
Proportion of spending on local suppliers in 2020 GEB TGI CÁLIDDA CONTUGAS TRECSA ELECTRO DUNAS TOTAL
Percentage of spending on local suppliers 95.9% 96.9% 97.7% 96.7% 94.6% 17.7% 94.9%
(204-1) Click here for additional details on the proportion of spending on local suppliers in 2020

We have three sourcing committees at different governance levels in accordance with GEB’s structure, which are responsible for promoting, assessing and approving the sourcing policies and the contracts to acquire the goods and services required by the company’s areas to develop their projects and initiatives, in order to contribute to the achievement of their strategic objectives.

Our achievements in 2020


94.4/100 was our suppliers’ average performance assessment score: 910 were classified as good and excellent, while 74 were classified as poor or deficient.

  • We consolidated the stabilization and knowledge of the Ariba platform to manage the procurement process, which we began to implement in November 2019. The following were the results:

registered suppliers
categorized suppliers
guarantees reviewed
assignments of contract supervisors
amendments signed
contractors assessed
contracts settled
active users in 2020
requests in progress
suspensions managed
procedures processed in the system
contracts signed
  • We implemented electronic signatures through the DocuSign tool, which has been consolidated and stabilized in the Group and integrated into the platform for the effects of contracting:

certificates of commencement
certificates of suspension
offer acceptances
framework contract requirements
close-out and termination processes
certificates of resumption
subscriptions and events
  • We began the Supplier Development Plan with strategic activities such as assessments to define categories and criticality, with the purpose of strengthening the supply chains for each process.

  • We completed the changes to the questions for contractor performance assessments jointly with the safety at work culture consultant and the OSH, Contract Supervision and Planning departments.

  • We continue to provide support to TGI in registering and categorizing suppliers in the Ariba platform.

  • (308-1) (414-1) In 2020, 43 % of new GEB suppliers were subject to screening assessments in accordance with environmental and social criteria. See the Annex on the Supply Chain.

  • We performed market intelligence for services in the social management category with advice from a specialist consultant, jointly with the Social and Shared Value Office of the Sustainability Department. We prioritized four critical segments for this area’s needs and identified 44 potential partners for shared value creation programs, resettlement action plans, environmental management plan training, and ethnographic and social marketing studies.

  • We contributed to strengthening contractual planning at GEB.

Our challenges for 2021

We have the challenge of being re-certified with the CIPS Standard Award, which has classified our strategic sourcing model as a world-class practice.

  • Carry out the process of re-certification by the CIPS (Chartered Institute of Procurement & Supply) as a global reference of good strategic sourcing practices, which was obtained by GEB in 2018.

  • Consolidate use of the SAP Ariba and DocuSign tools in some of the controlled affiliates to support their sourcing processes.

  • Manage the suppliers of GEB and its controlled affiliates and implement the Supplier Management Model by categories for the effects of classification.

  • Administer and manage material samples for GEB and its controlled affiliates.

  • Identify opportunities for joint Group negotiations on specific topics of the business lines to achieve economies of scale.

  • Structure a criticality matrix for the contractual requirements of Transmission, in combination with the asset management project.

  • Identify, formulate and measure indicators for the sourcing planning, performance and closing processes and improve the indicators of the selection stage.

  • Create a Vendor List to optimize sourcing management in categories for the operation and management of the core business.

  • Carry out a diagnosis on the status of GEB regarding sustainable purchasing, in accordance with the ISO 20400 standard, and implement changes to narrow gaps.

  • Consolidate requirements planning in the Annual Contracting and Purchasing Plan as a medium-term management instrument.