The procurement practice in Tropicana comes under the oversight of Group Procurement. Tropicana’s approach to procurement is guided by the Group’s procurement policy. To maintain product quality, we emphasise e ective procurement measures that facilitate e ective engagement with suppliers who align with the Group’s commitment to product quality and service excellence. FAIR SELECTION & CONTINUOUS ASSESSMENT We strive to procure our resources and building materials from suppliers who share the same commitment to product quality and adherence to regulatory standards. Taking into consideration their job history, cost of service and ability to meet deadlines, we enforce stringent selection and evaluation methods to ensure that our suppliers are contracted based on merit. SELECTION • Product sourcing via the Approved Suppliers List (“ASL”) SURVEY • If products are unavailable on the ASL, the Group will conduct open market research for alternatives • Upon the identification of suitable vendors, the new vendors will be required to complete the Vendor Survey Form (“VSF”) SELECTION • Shortlisted vendors are surveyed and selected based on financial security, labour costs, compliance, product pricing and quality CONTINUOUS ASSESSMENT • Suppliers are periodically assessed for their performance and compliance based on the criteria outlined in the Group’s SOP The Group remains uncompromising in our stance on product quality and service excellence which extends to the suppliers we engage with. In the event that contracted suppliers fail to meet the performance benchmark set by the Group, the following consequence is applied: • Probation Supplier – Suspended from tender participation for a specified period • Not Acceptable Supplier – Removal from Approved Suppliers List (“ASL”) list SUPPORTING THE LOCAL MARKET We manage our procurement costs through sound contract management by maintaining product pricing and continuously monitoring resource availability to manage the lead delivery time of the products we procured. Cognisant of our operational needs, the Group remains steadfast in procuring 100% of our products from the local market. Our local market and manufacturers are those companies registered in Malaysia and are local distributors of imported items. We continue to endorse the hiring of local suppliers as a means to stimulate the recovery of Malaysia’s economy while ensuring the Group maintains a steady supply of products required to maintain our operations. FY2021 FY2022 FY2023 Amount spent on local suppliers for Group Procurement RM 10,428,942 RM 23,409,032 RM 15,202,065 Amount spent on local suppliers for Building Materials RM 9,469,581 RM 11,390,080 RM 21,761,596 PROCUREMENT PRACTICES 131 TROPICANA SUSTAINABILITY STATEMENT
RkJQdWJsaXNoZXIy NDgzMzc=