Critical suppliers are active direct (tier-1) material suppliers with high sales value greater than RM1 million per annum and/or irreplaceable suppliers. Direct material suppliers are suppliers who supply packaging materials, raw ingredients and auxiliary materials. Irreplaceable suppliers include single-source suppliers.
On annual basis, we will conduct a vendor performance evaluation for all critical suppliers, including sustainability. Non-compliant or underperforming suppliers must demonstrate that they are committed to taking necessary corrective actions within a predefined period, or risk having contracts terminated.
The Group works closely with our suppliers and conducts regular audits to ensure standards and practices for food safety and the environment are maintained throughout the value chain. All suppliers performances are assessed monthly and audits are done for medium and high risk suppliers 2 times a year based on quality, delivery, service, food safety compliance and certification systems including quality, environmental and occupational health and safety.
Non-compliant or underperforming suppliers must demonstrate that they are committed to taking necessary corrective actions within a predefined period, or risk having contracts terminated.
For food safety, we assess a range of quality assurance and food security criteria to safeguard the health of consumers and the safety of workers in our supply chain. Our criteria for assessing suppliers include the implementation and monitoring of good manufacturing processes, use of protective clothing, food safety management systems, & chemical management.