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PROCESS EXCELLENCE & GOVERNANCE
50
Axiata Group Berhad | Sustainability & National Contribution Report 2016
PROCESSEXCELLENCE
& GOVERNANCE
Best Practices along the Value Chain
We are committed to maintaining optimal
efficiency and upholding best ethical
business practices throughout Axiata, and
this commitment extends to our third-
party suppliers and vendors. Our robust
procurement practices ensure that our
business partners uphold our expectations
of them in the areas of ethical practice and
sustainability which have been codified
in our Axiata Supplier Code of Conduct.
Additionally, Axiata works closely with its
vendors to minimise procurement costs
by leveraging on Group-wide volumes and
exploring alternative solutions with our
partners.
Some of our ongoing initiatives with
our procurement partners and suppliers
include:
Supplier Code of Conduct
We introduced the Axiata Supplier Code
of Conduct in 2015 requiring our suppliers
to meet our expectations in the areas of:
• Business Integrity and Ethics
• Management Responsibility
• Quality Management System
• Labour and Human Rights
• Health and Safety
• Reliable Supply Chain
• Environment Management
• Disaster Recovery Management
Suppliers are expected to conduct a self-
assessment of their services to ensure
that they meet these stipulations. The
programme has been steadily expanded to
include more of our suppliers and, in 2016,
was expanded to all our suppliers.
Supplier Performance Management
(SPM)
The SPM is a process implemented by the
Axiata Procurement Centre (APC) which
creates a common framework across the
Group to communicate transparent and
objective feedback to our key suppliers
for the purpose of driving continuous
improvement. In the past, SPM was
managed by individual OpCos using
different methodologies and evaluation
criteria.
The Axiata SPM framework assesses
suppliers along four key pillars :
• Commercial
and
Contract
Compliance:
o Supplier’s compliance to contract
terms
o Commercial competitiveness
o Proactive initiative to drive cost
optimisation
• Quality andOperational Performance
o Delivery lead time per contract
o Fulfilment of quality and competence
standards in execution and customer
service
o Resolution of operational issues
o Ease of communication
• Ethics and Sustainability
o Compliance to Axiata’s sourcing
process governance
o Demonstrates integrity in business
relationship
o Commitment to sustainable business
practice
o Commitment to the principles of
Axiata’s Supplier Code of Conduct
• Strategy and Roadmap
o Execution of a sustainable roadmap
aligned to Axiata’s strategies
o Strategic alignment with Axiata’s
business strategies
We
are
committed
to
maintaining optimal efficiency
and upholding best ethical
business practices throughout
Axiata, and this commitment
extends to our third-party
suppliers and vendors.
Recognised
3 suppliers
at our inaugural
Axiata
Supplier
Awards
in 2016 for their excellent
track record and performance