DSB Corporate Procurement

DSB Corporate Procurement is the central unit of the Group dealing with procurement. There are 21 employees in this department, which enters into agreements to a value of about DKK 2.6bn on an annual basis.

Our primary areas of responsibility are as follows:

• Corporate Procurement is to ensure utilisation of the purchasing synergies within DSB.
• Corporate Procurement has the overall responsibility for all purchasing activities within DSB, excluding the procurement of new train sets and merchandise for our station shops. These purchasing categories are dealt with by different departments within DSB.
• Corporate Procurement is in charge of ensuring that procurement processes are up-to-date, ethically correct and in keeping with DSB’s guidelines and values as well as statutory environmental and energy regulations.
• Corporate Procurement makes every effort that all procurement sections have access to relevant commercial and technical competencies.

DSB aims to enter into stable long-term partnerships with suppliers based on mutual trust.

Once a (framework) agreement has been entered into, other decentralised procurement units will manage logistics and product requisitions.

The procurement function is divided into three procurement sections:

• DSB Buildings, Maintenance & General Agreements
• DSB Rolling Stock Spare Parts
• DSB IT & Telecommunications

DSB would like to get in touch with potential suppliers living up to DSB's Code of Conduct, DSB's Green Procurement Policy and wanting a stable long-term partnership with DSB. Send us an e-mail in which you present your company and the products that you can offer DSB, and we will forward it to the correct individual within the relevant procurement section.

E-mail: gd@dsb.dk

The section for Buildings, Maintenance & General Agreements enters into purchase and framework agreements on both goods and services.

The agreements are divided into the following categories:

Skilled crafts agreements
This category consists of some 200 agreements with electricians, glaziers, joiners & carpenters, plumbers, painters & decorators, landscape gardeners and locksmiths.

The idea with the skilled crafts agreements is that we always have agreements in place with approved craftsmen and all practical issues, such as hourly rate, terms of payment, mileage rate, safety course and mark-up on materials, have been agreed in advance.

When entering into permanent framework agreements, both DSB and the craftsmen in question benefit from their local knowledge of the DSB destinations.
 
Service agreements
Courier transport by bike, car and aeroplane, furniture transport, bus & coach services (replacement buses and school trips), taxi services, disabled transport services, security rounds, breakdown cover, etc.

Printing services, courses, dispatch of parcels and light goods, translation agencies, laundering of work clothes, publication/communication of advertisements (the Ud & Se magazine), temping agencies, etc.
 
Servicing agreements
Servicing of trucks, ventilation and refrigeration equipment, refrigeration and freezing installations in the Kort & Godt shops, lift hire, automatic doors and gates as well as lifts, disabled access lifts and escalators.
 
Kort & Godt shops
In connection with the refurbishment or establishment of the Kort & Godt shops, the section enters into framework agreements with suppliers regarding refrigeration and freezing installations, furniture, tobacco cabinets, mobile racks, signage, washing machines, coffee makers, microwave ovens, flag holders as well as various catering equipment.
 
Platform fixtures and fittings
We also enter into framework agreements on products included in the platform fixtures and fittings.

Examples: benches, waste containers, waiting rooms and shelters, lit showcases, service walls, bike sheds, etc.
 
General agreements
We enter into general agreements on the following products:

• All forms of paper (paper towels, toilet tissue, copier paper, writing paper and envelopes)
• Stationery and books, diaries, stamps, packaging, disposables, coffee/tea, lamination, etc.
• Office furniture, including fire and burglar-proof safes
• Bags/sacks, including plastic and paper sacks/bags
• Curtains and sun shields, electrical equipment, light sources, cleaning articles, paints and painting equipment, signage, work clothes, uniforms, etc.

Energy and fuel
We cooperate primarily with DSB Production on entering into framework agreements and financial agreements on energy and fuel products, including:

• Refined oil products, including green diesel for trains, car diesel, petrol, heating fuel and servicing of oil firing systems
• Traction current for trains
• Electricity for buildings, etc.
• Natural gas

The section for Rolling Stock Spare Parts negotiates the purchasing contracts for four large production departments in DSB.

Rolling Stock Spare Parts works to achieve a closer partnership with DSB’s strategic suppliers, as we believe it will contribute to generating value within DSB. A close partnership with our suppliers must be based on trust – a quality which Rollig Stock Spare Parts sets great store by.

Rolling Stock Spare Parts welcomes new suppliers capable of delivering at competitive prices. In spite of its necessary focus on price, Rolling Stock Spare Parts still makes high demands on quality.
 
Demands on safety
As an operator, DSB is required to ensure that DSB’s rolling stock and equipment – at all times – comply with the safety specifications, on which the authorities base their approval of the rolling stock and equipment.

When deciding on purchasing train components,  the safety specifications of the particular component shall be retained or improved, and any purchase/modification must be preceded by a safety examination and approval. The object of the safety examination is to assess whether the particular component is safety-critical.

A component is safety-critical, if defects or deficiencies within the component may lead to derailment, collision, fire or personal injury.
 
DtC (Design-to-Cost)
Rolling Stock Spare Parts makes purchasing decisions according to the DtC method. The difference between the DtC procedure and a traditional purchasing procedure is that the DtC procedure has a very precise structure with strong focus on interdepartmental participation and on recognition of the costs of construction, acquisition, operation and maintenance. The DtC purcasing procedure focuses on functionality in relation to the precise specifications.
In addition, the DtC purchasing procedure includes intensive involvement of suppliers’ competencies and resources to find the best solutions for DSB.

LCC (life cycle costs) constitute an important aspect of the DtC procedure. LCC are particularly important for DSB, as the majority of the costs relating to the operation and maintenance during the service life of the train is decided by the choices made during the design and construction phase. As a consequence, Rolling Stock Spare Parts has much focus on  LCC being calculated for every purchase.
 
Rolling Stock Spare Parts welcomes new suppliers of the following products: 
Fixtures and fittings

• Fabric
• Sewing
• Foam
• Self adhesive signs
• Pictograms
• Glass & windows
• Stainless steel
• Spare parts for vacuum toilets
• Plumbing spare parts
• Emergency hammers
• Driver’s seats
• Roller blinds
• Ash trays
• Skirtings and panels

 Rubber parts

• Tubing
• Flexible gangways IC3 and IR4
• Rubber fronts IC3 and IR4
• Special rubber parts
• O rings, sealing rings, etc.

 Motor & spare parts

• Motor spare parts for locomotives
• Wiper systems
• Motor carbon brushes and pantograph collecting strips 
• Filters

Wheels & axles

• Wheels and steel tyres

Transport agreements

• Domestic forwarding
• International forwarding import/export

Pneumatic & exhaust systems

• Pneumatics and control
• Pneumatics spare parts
• Specially designed exhaust systems in stainless steel
• Expansion joints

Brake parts & couplings

• Brake linings
• Brake parts
• Screw couplings
• Automatic couplings

Electrical equipment

• Information systems
• Parts for switches
• Vacuum circuit-breakers
• Power supplies
• Accumulators
• General electronics
• Sensors
• Parts for lamps

IPC (Indirect Production Costs)

• Cleaning articles and detergents
• Train detergents
• Protective articles (gloves, hearing protectors, respiratory protective equipment, anti-fall equipment, goggles, etc.)
• Hand care products
• Parts for plumbing
• Iron and steel
• Tools
• Turning tool
• Bolts etc. including specialist bolts

Miscellaneous

• Smoke detector systems
• Standard and special ball bearings/roller bearings and needle roller bearings
• Train lubricants
• Liquid gas (tank and bottle) as well as other gases, primarily used in connection with welding

IT & Telecommunications handles all IT-related agreements. This section is in charge from the beginning of the project to the signing of the contract. There are the following main areas:

• Projects
• Standard hardware and software
• Consultants

Generally, we aim for long-term partnerships with our suppliers, focusing not only on price but also on reliability of delivery and a smooth order flow.
 
Projects
We invite tenders for many different types of projects, such as new radios for the S-train staff, new sales system for travel agency and much more.
 
Standard hardware and software
Within DSB, we have decided to standardise our purchases of hardware and software to maximise value for money. We use qualifications lists.
 
Consultants
We enter into framework agreements on a number of specific areas, such as project management, SAP and development. In addition, we find specialists, and if any specialist requirements occur, we make the appropriate enquiries. We use qualifications lists.

DSB sets great store by and actively prioritises sound conduct of business.

DSB has drawn up the procurement rules below for the benefit of its external suppliers. These rules are not to be regarded as legal procurement terms and conditions in connection with DSB’s procurement of goods and services.

DSB’s Code of Conduct for suppliers is available under a separate heading on this site.

The staff within the procurement function
All DSB’s procurement employees are – at all times – required to conduct themselves in a correct and professional manner in writing, action and speech.

Chief procurement managers, procurement managers and procurement assistants must remain independent of all suppliers at all times and generally work in accordance with DSB’s values described by the following five terms: makes it easy, value-adding, efficient, committed and responsible.

DSB’s procurement staff are not permitted to receive presents, subsidies or similar from suppliers, if these exceed customary presents at special occasions, unless they consist of minor items that are distributed for marketing purposes, provided their value does not exceed DKK 100.

DSB’s procurement staff may not use DSB’s name to purchase goods and services from DSB’s suppliers for their personal use. Moreover, they must refrain from using their position directly or indirectly to obtain special favours from DSB’s suppliers.

Suppliers
Relations to DSB’s suppliers must be established in such a manner that DSB’s reputation and the brand of DSB is kept intact or improved.

Provided suppliers keep the price level of their goods and services normal compared to the market in general, and provided suppliers adjust the development of their price levels in accordance with the general conditions of their particular markets, DSB does not generally want to make any quick supplier changes – it is not DSB’s policy to “chop and change” suppliers. Naturally, the above only applies subject to current EU procurement rules, according to which DSB is generally obliged to reinvite tenders and thereby subject existing suppliers to competition every 3–5 years.

Agreements on the procurement of goods and services are always based on DSB’s paradigms and in accordance with the terms and conditions laid down by DSB.

Environmental considerations and health & safety parameters etc.
Based on an overall assessment of the financial aspects, environmental considerations and health & safety parameters as well as any other relevant procurement parameters, DSB will purchase products and services that minimise the environmental impact and also ensure that health & safety precautions are made. DSB will make such assessments based on the life cycle of the product or service and not on any short-term financial considerations.

Ethics
In addition, DSB’s procurement staff cannot and without exception, neither directly nor indirectly, buy goods and/or services from suppliers who do not comply with DSB’s Code of Conduct, which can be found under a separate heading on this site.

DSB wants and demands good and responsible business conduct from all parties involved in doing business with DSB. DSB firmly believes that it is of mutual interest that current rules and conventions at all times are complied with.

To trade with DSB, suppliers are naturally required to comply with all international conventions and national legislation prevailing in the country, in which the work or service is conducted.

DSB is a signatory to the United Nations’ Global Compact and we expect that our suppliers - whether signatories or not - share the fundamental principles expressed herein

In practice, this means that DSB makes the following demands:

Suppliers must:

• comply with all current international conventions and national legislation on child labour.
• comply with all current rules on health & safety at work prevailing in the country, in which the work or service is conducted. However, as a minimum, suppliers are required – irrespective of the country of production – to comply with the ILO Declaration on Fundamental Principles and Rights at Work (incl. conventions and guidelines). DSB will individually assess every tender and decide whether or not it will be necessary to make further demands regarding health and safety at work.
• refrain from discriminating their employees directly or indirectly on the basis of race, religion, age, nationality, sexual orientation or gender.
• refrain from exercising force or using involuntary labour.
• refrain from corruption and offering/accepting bribes, and suppliers must direct their sub-suppliers and partners in business to do the same.
• comply with all current environmental legislation prevailing in the country, in which the goods are produced or the service is conducted. DSB will individually assess every tender and decide whether or not it will be necessary to make further environmental demands.

It is the responsibility of individual suppliers to take all relevant and necessary steps and measurements to ensure that they comply with DSB’s Code of Conduct.

At DSB’s request, individual suppliers shall be able to produce all relevant information and documentation to DSB within a reasonable period of time. Moreover, at DSB’s request, individual suppliers shall participate actively in DSB’s follow-up on compliance with DSB’s Code of Conduct through dialogue, questionnaires, systematic reporting, visits to the particular supplier’s address(es) or any other methods of confirmation and control that DSB may decide to use. Suppliers shall be liable for only the costs that they may incur in complying with DSB’s Code of Conduct and in producing the requested information and documentation for DSB.

As of 1 May 2007, DSB’s Code of Conduct will form part of all DSB’s procurement and trading agreements, and if a particular supplier does not meet the supplier’s obligations as described in DSB’s Code of Conduct, DSB reserves the right to cancel its agreement with the supplier in question and demand compensation for the loss that DSB may have incurred as a consequence.

Suppliers shall ensure that any sub-suppliers/sub-contractors that they may use also comply with DSB’s Code of Conduct. At DSB’s request, suppliers are required to notify DSB of their use of sub-suppliers/sub-contractors at any time.

 Code of Conduct.pdf [27 kb]

The environmental objective of DSB’s green procurement policy is to ensure environmental and health & safety assessments of all purchases in DSB

The basis of the objective
DSB’s green procurement policy and its procedure are to be implemented to ensure that environmental and health & safety demands are placed on DSB’s suppliers.

These parameters are to be included in the overall assessment of suppliers and products together with financial factors, quality considerations, functional requirements, etc.

The reason for conducting the environmental assessments is to reduce the environmental impact derived by procurement and projects.

DSB’s green procurement policy is provided below:

The procurement directives lay down the rules by which the players must abide iwhen inviting/submitting tenders all over the EU. According to these rules, the public sector, including DSB, is obliged to call for tenders when offering contracts above a certain limit on the procurement of goods, services or building and construction work.

There are many advantages of having these rules. It is an advantage for organisations in the public sector which – via the tender system – are able to select the best and least expensive goods/services, and it benefits private companies which get the opportunity to compete on equal terms for public contracts all over the EU.
 
Threshold value
The procurement rules set out procedures, with which public sector organisations offering contracts must comply. For instance, they have a duty to call for tender when offering contracts above a certain value (a so-called threshold value).

Thus, these rules mean that an open market of competition is created and companies will have the opportunity of competing for the public contracts offered.
 
Equal treatment
Under the procurement rules, public sector organisations offering contracts must treat the tenderers equally. Thus, they are not permitted to favour local (national) companies. All tenderers must have equal opportunity of winning contracts with the public sector, and the organisation is required to choose the best and least expensive tender. The public sector organisations offering contracts are required to act out the forces of market economy, and the state of competition will therefore decide the winners of the contracts.
 
Know the rules
When a company wants to participate in the competition for public contracts, it is clearly an advantage to know the rules that are set out in EU’s procurement directives. What is required of the company? Which requirements must the tender comply with? What is the procedure for choosing between the different tenders? What are the threshold values? These and many other questions are answered on, for instance, www.ks.dk or www.udbudsportalen.dk. You will gain insight into the procedures (the legal rules) of a call for tenders, step by step. You will find checklists that are particularly relevant for companies needing a general idea of the rules, such as companies participating for the first time in an EU tender process. The checklists show what the tenderer needs to do and the order in which it must be done.
 
Framework agreements
DSB Corporate Procurement usually invites tenders for framework agreements that are entered into on behalf of the entire DSB Group. The framework agreements do not normally commit DSB to purchase a specific quantity of goods.
 
Qualification procedure
DSB Corporate Procurement uses a qualification procedure as a method of obtaining prequalification of suppliers. Via annual notification in TED, DSB ensures that potential suppliers can apply for qualification at any time. Suppliers qualify on the basis of objective criteria and rules laid down by DSB Corporate Procurement.
 
Where do I find the advertisements of the invitation to tender?

In the Supplement to the Official Journal of the European Union (TED) - see www.ted.europa.eu

Forwarding invoices electronically
Invoices can be forwarded to DSB in the following two ways:

Via DSB’s EAN number: 5798000893474

or by e-mail to faktura@dsb.dk (in PDF or Word format)

DSB needs the following information on all invoices:

Order/requisition number

or

Person reference, which must always be stated as the orderer’s e-mail address

The EAN number covers only DSB and not DSB’s subsidiaries, including DSB S-tog.

(At the moment, DSB’s subsidiaries do not receive invoices via EAN number).