Sustainable procurement remains one of the opportunities identified as part of our stakeholder engagement designed to embed sustainability in the Group. We believe sourcing and engaging suppliers who support our Group’s code of business ethics, commitment to environment stewardship and standards for labour can help us attain our sustainability ambitions.
While we have been unable to meet our sustainable procurement target, our focus remains on going beyond our current basic levels of supplier compliance to ensuring integration of sustainability practices. We plan to improve our procurement process and ensure that the Group is on a journey towards a sustainable supply chain. Integrating sustainability across key dimensions of the procurement process requires strategy & planning, sourcing and category management; supplier relationship management; workforce transformation; process excellence and technology as well as risk management which include identifying and quantifying risks existing in the sourcing and procurement from a sustainability perspective.
Supplier Relationship Management
The deepening of our supplier relationships continued in 2018. Focus areas of improvement include
- Initiating more agreement with vendors on strategic partnerships.
- Leveraging technology to automate our procurement process, enhance collaboration and provide a platform for easy supplier life-cycle management.
We have continued enhancing our strategic vendor partnership programs, and driving better performance with the implementation of the Oracle E-Business Suite, which provides a platform for the automation of our procurement processes (from Procure To Pay) This technology has enabled us to achieve:
- Visibility of our entire supplier base;
- Easier supplier collaboration and engagements;
- Enhanced value measurement for our supply chain through scientific, data-driven management; and
- Improved ability to track and measure supplier performance and provide timely feedback, which is measured objectively and is transparent to all parties.