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What we buy
Procurement categories
The services and products procured by KPN are divided into the following procurement categories:
- Construction, Engineering & Facility Management: This category covers the hire of contractors and advisers for construction, expansion and service of the fixed, mobile and broadcasting network and the technical buildings, including all the necessary materials and equipment.
- Marketing, Media, Call Center & Logistical Service.
- Professional Services: This category covers the hire of external personnel, consultancy, HR services such as training courses, recruitment & selection and HSE services, travel and lease vehicles and industrial clothing.
- Information Technology: This category covers all the products and services relating to IT, for internal business operations.
- Network Access & Customer Premises Equipment: This category covers products and services for KPN’s own network as well as mobile phones and modems for customers.
- Energy Management: This category covers the procurement of electricity, gas and water.
- There are also a number of non-procurement categories – financial obligations that fall outside the scope of procurement, such as traffic of and via other telecom operators, hire of buildings and mobile cell sites, relationship with banks and public authorities. The management of the relations in these categories is done elsewhere in the KPN organization.
KPN has selected approximately 25 strategic suppliers, 650 preferred suppliers and 8000 other suppliers. Around 85% of the total procurement volume is placed with strategic and preferred suppliers.
Conflict minerals
One of the dilemmas faced by our sector is how to deal with ‘conflict minerals’ that are used in the manufacture of ICT equipment. We do not want to use conflict minerals in our mobile phones, but we are still trying to decide exactly how and where to take action. This is a complex issue involving many interests, and we are a small user of these minerals in global terms. This does not discharge us from our responsibility, however. Areas in which conflict minerals, such as tin, tantalum (coltan), gold and wolfram, are extracted include war zones in the Congo. Some of the revenue reaches warring parties in these areas. Together with other international ICT companies that are members of the EICC and GeSI organizations, KPN supports initiatives to prevent human rights violations and the financing of armed conflicts by mineral extraction. A mineral mapping program, which can show systematically the origin of minerals, is currently being drawn up in cooperation with social organizations. KPN can also make use of this program when it has been finalized, thereby responding to the call made by MakeITfair, an organization which is campaigning for the ICT sector to be more transparent about the origin of minerals.
