Apart from directors and employees, third parties that work with or on behalf of the company are also subject to the relevant policies as listed in the ABC Manual. Joint venture companies in which MISC is a non-controlling co-venturer and associated companies are also encouraged to adopt similar principles and standards. Further details can be found at www.misc.com.my. CREATING VALUE MISC is committed to creating value in the marketplace together with our vendors, suppliers and customers. Sustainability principles applied in our marketplace initiatives have resulted in a more competitive and strong, valuedriven supply chain, apart from eliciting greater engagement and service value for our customers. Vendor/Supplier Management Competitive Procurement Engagement and collaboration with suppliers are essential towards procurement excellence. MISC focused on joint growth and value creation with key suppliers for strategic partnerships by becoming the customer of choice, focusing on value, leveraging on supplier capabilities and sharing of business requirements. MISC’s marketplace initiatives in 2014 reflected our ongoing efforts to remain competitive, improve efficiency and effectiveness whilst maintaining good governance and transparency. MISC continued to focus and develop broader set of strategies to drive performance by having strategic partnerships with key suppliers to develop sourcing strategies within the Group to achieve maximum cost savings via Economies of Scale (EOS). MISC also continued to enhance its procurement processes and functions to become leaner and robust, to support the business effectively and efficiently. At the same time, MISC also promoted sustainability by working with vendors and suppliers that meet our social and environmental standards. Monitoring and assessment exercises are also carried out once a vendor has successfully secured a contract to ensure that expectations are met. MISC also complies with the stipulated legislation in relation to our vendors/suppliers such as the Personal Data Protection Act (PDPA) 2010. Supplier Relationship Management (SRM) Programmes The Supplier Relationship Management (SRM) Programmes for vendors/suppliers were established to provide a structured form of engagement. The programmes provided for monitoring of vendor/supplier performance and deliverables to ensure that there are no gaps between their deliverables and our expectations. The SRM programmes carried out in 2014 included the following: • Quarterly Supplier/Vendor Engagement Programme (SEP/VEP) Supplier Engagement Programme (SEP) for existing suppliers and the Vendor Engagement Programme (VEP) is conducted for new vendors to enhance working relationships while providing opportunities for information sharing from all parties. • Quarterly Delivery Assessment Exercise (DAE) Delivery Assessment Exercise (DAE) is a physical assessment conducted by the procurement team on board vessels and at the vendors’ premises for both bunker and non-bunker vendors/suppliers. This assessment measures their performance on quality, cost, delivery and reliability of services as agreed in the scope of work. In 2014, 10 DAE activities were conducted successfully where all vendors’/suppliers’ performance were satisfactory. • Vendor Performance Assessment (VPA) Vendor Performance Assessment (VPA) is conducted annually to gauge vendor performance and to facilitate selection of potential vendors. Inability to meet the requirements of the VPA will form the basis of further action under vendor consequence management. In 2014, 11 VPAs were conducted on selected vendors/suppliers covering bunker and non-bunker and we are pleased to report that the assessed vendors/suppliers met MISC’s specifications and requirements. p 97 MISC BERHAD - Annual Report 2014
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