Ansaldo STS considers the supply chain management process a critical factor for the success of its business. Strategic procurement management requires a broad vision of the process along the entire value chain, from the definition of product specifications and service to delivery. Ansaldo STS’s management method is interfunctional and provides for the involvement and approval of all bodies concerned by the overall logistics.

Given that it designs, builds and operates transportation and signaling systems for railway and urban rail transport, Ansaldo STS’s supplies include:

  • Materials – purchase of electronic cards, mechanical and plastic parts, wayside equipment, cables, racks, cabins, industrial PCs, on-board equipment and electromechanical components.
  • Services – facility management and HSE, payroll services, professional and ICT services, logistics services and travel.
  • Business services – engineering and development services and RAMS activities (reliability, maintenance, availability and security).
  • Turnkey projects and subcontracts – the award of a turnkey contact relates to systems that interact with the rest of the technologies for the specific contract such as: installation systems, telecommunications systems, auxiliary braking systems, power supply and systems, supervision and control systems, depots for equipment, signaling systems, rails and civil works.

2016 orders by supplier on a geographical basis were as follows:

The number of active suppliers in 2016 increased from 3,017 to 3,250. They are analyzed by geographical area and order size below:

  • 60% are European suppliers;
  • 18% are suppliers in Asia Pacific;
  • 21% are suppliers in North/South America;
  • 2% are suppliers based in other areas.

The economic benefit of working with Ansaldo STS can be measured by considering its suppliers’ workforces. Accordingly, the following should be considered:

  • 43% of Ansaldo STS’s orders are for high labor-intensive services (100%);
  • 35% of its orders are for turnkey contracts and subcontracts which have an average labor intensity factor of 50%;
  • 22% refers to supplies of materials with a medium labor intensity factor of 20%.

Therefore, the labor intensity factor of Ansaldo STS’s orders is roughly 65%: about €571 million paid to suppliers is to cover their labor costs.