Procurement and Vendor Governance

At Sime Darby Plantation, our commitment to excellence extends beyond our organisation. We also work closely with our Vendors (such as Service Providers, Suppliers, Contractors and Consultants) to ensure that our values and principles are carried through in every aspect of our business operations.

We strive to continuously build long-term and mutually beneficial partnerships with our Vendors by working towards a common goal – value creation and operational excellence.


Procurement Governance
Strong procurement governance and vendor management are key to achieving Sime Darby Plantation’s operational excellence. The principles of good procurement governance within Sime Darby Plantation are sustained through maintaining and upholding our procurement policies and procedures with help from our available tools and control systems.

Group Procurement Policies and Authorities (GPPA)
As part of the Government Transformation Project, the ‘Red Book,’ prepared by the Putrajaya Committee on GLC High Performance in 2005, lays out the recommended best practice procurement guidelines for use by Government Linked Companies Board members, Chief Executive Officers and Chief Procurement Officers. Sime Darby Plantation has developed a GPPA incorporating the Red Book's procurement objectives, procurement best practices and the Company's corporate objectives. In particular, the GPPA has six objectives:
  • Drive value creation and minimise Total Cost of Ownership
  • Increase procurement process efficiency
  • Enhance transparency
  • Enhance organisation capabilities and governance
  • Improve vendor management, including vendor development
  • Support national development

Code of Business Conduct (COBC)
As our counterparts or business partners, Vendors are expected to adhere to standards of behaviour aligned to promoting a fair, honest and ethical business environment. Sime Darby Plantation’s COBC provides guidance to these standards of behaviour when dealing with or on behalf of the Group.

Read more about our Code of Business Conduct


The Vendor Letter of Declaration
The Vendor Letter of Declaration (VLOD) is a formal affirmation by any Vendor who intends to conduct business transaction(s) with Sime Darby Plantation, that the said Vendor:
  • Will comply with all applicable laws or regulations;
  • Is not involved with any offence of bribery, corruption or fraud; and
  • Will not engage in bribery, corruption or fraud with Sime Darby Plantation

The VLOD is one of the Company’s procedures for the prevention of corruption that applies specifically to Vendors. It is a compulsory requirement for Vendors to sign the VLOD upon registration so as to enable them to be selected as a prospective Vendor and subsequently be included in Sime Darby Plantation’s Approved Vendor List (once pre-qualification requirements and procedures have taken place).
 

Procedures (Vendor Management)
Vendor management is a key area in managing compliance of our overall vendor & procurement governance. All vendors are required to undergo the various processes involved including registration and pre-qualification in order for the Company to establish a quality and comprehensive Approved Vendor List. Sime Darby Plantation’s business needs will be better fulfilled through sourcing via precise vendor selection procedures that has undergone rigorous pre-qualification requirements. Sime Darby Plantation will conduct further evaluation to assess vendors’ range of work categories and nature of business against the business needs. Continuous performance evaluations will be carried out to ensure these business needs are met.

Vendor Management Overview
Vendor Registration & Pre-Q
  • Registration & pre-qualification of vendors to ensure accurate lisitng of vendors profiles, their products/services and qualifications
  • Signing of the VLOD for adherence to Sime Darby's COBC

Approved Vendor List
  • Sime Darby's Approved Vendor List provides a strong, competitive and stable database to facilitate selection for sourcing activities

Further Evaluations
  • Further qualification for specific work categories and nature of business depending on business needs
  • Continuous performance evaluation throughout active period of transactions with Sime Darby

Tools and Control
Apart from ensuring our operational procurement steps are captured through clear terms and conditions with our vendors, Sime Darby Plantation is also continuously implementing electronic procurement (eProcurement) capabilities to help put our policies and procedures in action.

Sime Darby Plantation continues to work closely with our vendors to help ensure that these capabilities are mutually beneficial in our procurement activities. Some examples of our eProcurement tools are the Online Vendor Registration, eTendering, eBidding and Procure-to-Pay modules accessed through our Sime Darby Plantation eProcurement Portal.


Interested to be Sime Darby Plantation's Approved Vendor?
At Sime Darby Plantation, we are always on the lookout for new partners to help us reach our goals. If you are interested in offering your services to Sime Darby Plantation, please visit our eProcurement Portal.
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