SECTION 2: OUR STRATEGIC CONTEXT 46 OUR INITIATIVES In 2023, we have placed efforts to improve aspects of our supply chain. In FY2023 126 suppliers signed the COCETP. 63.52% of supplier spending were local, with businesses in the countries where we operate. Local suppliers accounted for RM70.3 million or 63.5% of total RM110.7 million procurement spending. In 2022, we established the Stock Provision Policy to optimise inventory levels and reduce aged stocks. Our buying and operational finance departments implement a future buying plan that utilises weekly sales data. This plan helps manage procurement effectively and prevent overstocking of ageing products. However, while it aids procurement, existing overstock may still require active sales events to reduce wastage. 1 Procurement Planning The working environment at the warehouse is crucial in the areas of health and safety, therefore, we ensure that we enforce stringent procedures to prevent hazards. This includes standard operating procedures (SOPs) such as, but not limited to, consistent housekeeping, verbal briefing and reminders and issuance of official warnings to employees if they are found operating in a dangerous manner. In 2023, we also established the Code of Conduct & Ethics for Employees that prohibits thefts, fraud and pilferage. We also utilise technology to reduce manual data entry and conduct internal audits for warehouse processes. 2 Warehouse Workplace Improvements This includes requirements related to anti-bribery, data protection, whistleblowing and other key principles. By implementing this code, we aim to ensure that our supplier relationships adhere to strong ethical standards. Beyond the code, we also actively support the sustainability initiatives of our trade brand partners. We showcase their sustainable products through our marketing efforts, promoting more sustainable options to customers. Additionally, where possible, we prioritise appointing local suppliers and vendors for trade and non-trade goods and services within our operational regions. This supports responsible sourcing and reduces the environmental impact of our supply chain. 3 Supplier Code of Conduct In 2023, we developed the Code of Conduct and Ethics for Third Parties (COCETP), outlining our ethical and governance expectations for third-party suppliers. SUSTAINABILITY STATEMENT
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