SUPPLY CHAIN MANAGEMENT We rely on a wide range of suppliers to help fulfil the needs of our diverse businesses. Recognising our ability to influence our suppliers, we seek to encourage sound ESG practices across our supplier chain. At the same time, we uphold the highest level of integrity and transparency in our dealings with suppliers as we build strong relationships based on trust. To support the local economy, our preference is to source locally as far as possible. However, we also take into consideration user specifications, quality and compliance requirements, supply chain dynamics and other commercial issues in our vendor selection process. Potential suppliers are invited to participate in a Request for Quotation or Proposal, following which their submissions are evaluated based on their ability to meet our specifications, target price, the quantity and quality of products to be supplied, delivery location and other operational/commercial requirements. Under certain circumstances we also assess the suppliers’ financial health. The recommended supplier is then presented to the relevant procurement approvers and stakeholders for review and approval. Thereafter, a contract may be put in place for clarity of responsibilities and accountabilities for both Capital A and the supplier, with the support of our Legal Team. Critical suppliers, as determined by Group Procurement, undergo an annual assessment to ensure they continuously improve the quality of the goods and services provided while keeping costs low. It is also an annual check-and-balance to ensure that suppliers understand and meet our risk and compliance policies. Types of suppliers we engage with: ICT Food & Beverage (Inflight Food) Facilities, Transportation, Logistics, Ground Service Equipment (GSE) Commercial & Marketing Professional & Facilities Services General Items, Apparel & Merchandise Critical suppliers (specialised and difficult to substitute) Critical suppliers which are difficult to substitute due to stringent requirements of regulatory bodies. Certain suppliers, eg for water can be substituted Choice of suppliers can be quite wide, subject to user requirements Event suppliers are wide but choice of media agency is very selective based on commercial needs Professional services suppliers are mostly specialised, however facilities services are mostly from local suppliers which come from a wider pool Common pool of suppliers • Business integrity and conflicts of interest • Labour practices • Confidentiality and personal data protection • Environmental, health and safety management • Social responsibility • Competitive pricing and terms • Anti-bribery and anti-corruption (included in 2021) Our contracts carry a legal language to mandate suppliers to comply with all applicable laws and regulations. Indicators 2019 2020 2021 No. of local suppliers excluding fuel, aircraft purchase & lessors 3,860 1,779 895 % spend on local suppliers 35 38 38 Total spend on local suppliers (RM) RM622,002,369 RM572,184,262 RM575,651 We have a Supplier Code of Conduct (SCOC) which is communicated and mandated through our Terms & Conditions in our purchase orders (POs) and/or contracts. The SCOC covers: S U S T A I N A B I L I T Y S T A T E M E N T A N N U A L R E P O R T 2 0 2 1 1 1 9
RkJQdWJsaXNoZXIy ODU0MjU5