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:
