OVERVIEW PERFORMANCE SUSTAINABILITY FINANCIALS APPENDIX Supplier Management Perennial Holdings conducts stringent screenings of all potential suppliers and vendors (mainly service providers for property cleaning, security and maintenance) to ensure that sustainability is integrated throughout their business and supply chain. A rigorous four-step process, tailored to specific projects and their requirements, is used for these evaluations. For major projects such as AEIs, Perennial Holdings employs the approach illustrated below. 1. PRE-QUALIFICATION Perennial Holdings has in place an internal vendors’ assessment for all suppliers. New suppliers must present relevant financial statements, track records and ISO certifications. They must also meet respective guidelines such as: i) Police Licensing and Regulatory Department minimum B grade (for security suppliers). ii) BCA and ISO certification (for builders and electrical vendors). iii) Current suppliers have to pass Perennial Holdings’ internal vendors’ assessment (minimum average grading). 2. CALL FOR TENDER Potential suppliers will undergo a second screening for projects which require calls for tenders. For projects that require calls for tender, potential suppliers must undergo two screenings. Should there be any deviation from the Pre-Qualification list, senior management’s approval will be sought. Operations Team will determine the required scope of work and evaluate suppliers based on the price and quality of materials used. Vendors are required to meet specified requirements set out in the tender documents to ensure the quality of their goods and services. For example, security officers must possess the Workforce Skills Qualifications (“WSQ”) Certificate in Security Operations, have relevant working experience and be physically fit. Cleaning service contractors should also be certified by WSQ/National Skills Recognition System (“NSRS”) or at minimum possess a Cleaning Business License from National Environmental Agency (“NEA”). 3. EXECUTION All suppliers and vendors are mandated to comply with relevant laws and regulations in their countries of operation (e.g, Employment Act and WSH Act in Singapore and Law of the People’s Republic of China on Work Safety in China). Suppliers are also required to ensure that service employees hired have received relevant service delivery training to ensure that these employees possess a positive working attitude. 4. REVIEW Supplier performance is closely monitored via activities carried out during work, such as: 1. Site inspection – To certify that work is carried out in a manner that safeguards workers’ health and safety. 2. Proper handover – Work carried out by contractors should be endorsed through proper handover documentation featuring sign-off from all parties. 3. Internal audit – Internal audit team will work together with independent external consultants to audit operational processes to ensure that standards are met. 4. Regular engagement – Regular meetings are held with suppliers and contractors for updates on projects and construction works. Figure 11: Perennial Holdings’ Supplier Management Process Execution Review Pre-qualification Pre-qualified vendors 4 3 1 2 Call For Tender PERENNIAL HOLDINGS’ SUPPLIER MANAGEMENT PROCESS Potential suppliers will undergo a second screening for projects which require calls for tender. Input will be sought from Operations Team on the required works to evaluate suppliers based on their price and quality of materials used. Vendors will have to meet the specified requirements set out in the tender document upon award of contract. Perennial Holdings has in place an internal vendor’s assessment for all suppliers. Only pre-qualified suppliers will be invited to tender, for which they will be required to prepare relevant financial statements, track records, ISO certifications and meet respective guidelines (applicable for security suppliers, builders and electrical vendors). All suppliers and vendors are mandated to comply with relevant laws and regulations in their countries of operations (e.g. Employment Act and WSH Act in Singapore and Law of People’s Republic of China on Work Safety in China). They will also be accountable for ensuring their employees receive relevant training for their required works. Supplier performance will be closely monitored based on the activities carried out during the course of work. This includes site inspection, proper handover, internal audits and regular engagements. 107 ANNUAL REPORT 2023
RkJQdWJsaXNoZXIy NTM2MDQ5