Economic


*The content on this webpage is sourced from Southern Steel Berhad's Annual Report 2024


Supply Chain Management

The Group believes that supply chain management is important for us to remain agile. We aim to manage the supply chain, such that the practices can secure stable supply of materials and services at competitive prices with quality and prompt delivery of the products to meet the customers’ expectation and products’ specifications. 

 

Our Initiatives

 

Supplier Code of Conduct


Our suppliers are the critical partners that influence the achievement of the Group’s business objectives. Active suppliers have been communicated to adhere to the Supplier Code of Conduct and Ethics. The Supplier Code of Conduct and Ethics has been revised with additional sections on Labour and Human Rights, and Environment.

 

Supplier Performance and ESG Assessment


Prior to the supply of materials and services to the Group, the suppliers are required to go through New Vendor Pre-Qualification process, where due diligence is conducted to verify that the suppliers are genuine and appropriate.

 

At the end of each financial year, we will also perform supplier/vendor performance assessment. The current rating criteria is based on:

  • Product Application/Quality/Technical Support

  • Delivery

  • Service

  • Packaging/Labelling

 

At the end of the assessment, the suppliers will be rated as “Good”, “Satisfactory” or “Poor”. Those suppliers under the category of “Poor” will be notified to improve on their performance.

                   

To uphold our commitment to ESG principles, the Group has implemented Vendor ESG Assessment in FY2024. This initiative encourages our suppliers to evaluate their current status in environmental stewardship, social responsibility, economics and governance.

 

The Group invited both existing and new suppliers to participate in our ESG Assessment. Out of 200 existing suppliers invited, 172 responded, resulting in an 86% response rate. For new suppliers, 76 out of 76 responded, achieving a 100% response rate. The summarised assessment response rates are as follows:




The Vendor ESG Assessment highlights that there are substantial room for improvements in all key areas of sustainability. Both existing and new suppliers currently show low levels of awareness in environmental, social, economic and governance aspects. The summarised assessment results are as follows:




Supporting Local Procurement

 

The Group believes that embracing local procurement will contribute to cost optimisation and efficiency, as well as the growth and sustainability of our local economy. The support that we render to local suppliers will also help in creating job opportunities and generating income within the local community.

 

The Group’s spending on local suppliers and overseas suppliers are listed as below:



Innovation Culture

As part of the Group’s commitment to continuously cultivate an innovative culture, we aspire to use the Innovation Competition as an avenue for employees to showcase their talents while serving as a means to boost engagement and motivation. Employees are encouraged to think creatively, adopt sustainability ideas and present their ideas to a broader audience, including senior leaders within the Group. This recognition and exposure can energise and motivate employees, while instilling a sense of purpose and pride in their work.

 

The Innovation Competition has proven to be an effective tool in fostering a culture of continuous improvement and sustainability within the Group. By integrating ESG theme and aligning projects with the United Nations SDGs, the Group not only enhances its innovative capabilities but also strengthens its commitment to global sustainability efforts. The Group will continue to leverage such initiatives to engage employees, drive innovation and contribute to a more sustainable future.

 

The Innovation Competition 2024 Grand Final took place in May 2024, featuring technical presentations from 10 shortlisted teams across the Group. The finalists competed for top rankings in the competition, demonstrating a high level of innovation and commitment within the organisation.


Product and Quality

The Group is dedicated to the production of a diverse range of steel products, essential for various construction and industrial applications. The Group manufactures a diverse array of steel products, with the following core offerings:


  • Steel bar for construction

  • Wire rod for construction and industrial applications

  • Steel mesh for construction purposes

  • Pre-stressed concrete steel wire and strand for construction

  • Steel pipe for construction and industrial applications.


In addition, we operate steel service centres that specialise in custom cutting, bending and forming of steel bars to meet specific construction requirements.




The Group continues to put in rigorous effort and care to ensure strict adherence of our products to both local and international standards agreed upon with customers. We proudly maintained 29 products licensed under the Product Certification Scheme of SIRIM QAS International, demonstrating our commitment to quality and compliance.




The main testing laboratory at SSB is accredited by the Department of Standard Malaysia under MS ISO 17025:2017, General Requirements for the Competence of Testing and Calibration Laboratories. Additionally, SPC houses another accredited laboratory. Each laboratory specialises in various tests, including tensile, bend and re-bend tests on steel bars for concrete reinforcement and steel products; tensile and relaxation tests on strands for prestressed concrete; elemental analysis using arc spark spectrometry on stainless steel, carbon, and low alloy steel products; as well as microstructure and non-metallic inclusion identification on carbon and low alloy steel products.




The Group continues to embark on the journey of progressively certifying its products with the Product Eco-Labelling of SIRIM QAS International and the MyHijau Mark of the MGTC. In FY2023, the Group successfully attained certificates for 8 downstream products of SSM under the Product Eco-Labelling Scheme of SIRIM QAS International. In FY2024, we further attained the MyHijau Mark certification from MGTC for the same 8 products. The Group is committed to acquiring Eco-Labelling certificates for more products across the organisation.