Framework agreement: the easiness of an open order

Today is the 6th birthday of the renewal of the framework agreement - an open contract containing all the prices of the spare parts - between Magaldi Power and ENEL. In fact it was April 2004 when ENEL, the biggest Italian utility, signed with Magaldi the first “framework contract” for the supply of spares and services to its coal fired Power Stations located in Fusina, La Spezia, Genova, Bastardo and Sulcis. Torrevaldaliga, recently converted from oil to coal, will be added soon. Since then, the life of their Purchasing department and of our Service department changed dramatically; minimal bureaucracy, no more enquiries and proposals, same codes, same descriptions, “frozen” prices in the SAP system.