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PROCUREMENT ISSUES |
Given the nature of its business, SLT relies on a variety of suppliers and a complex inventory of products to run its operations successfully.
Potential threats in this area could arise from – supplier delays or default, product obsolescence and inappropriate inventory situations.
Mitigatory measures include the adoption of a consistent policy framework across the entire procurement cycle, with all purchases being evaluated by Permanent Evaluation Teams (PETs).
In order to avoid product obsolescence and supplier default, multiple vender sourcing has been adopted across the majority of our core commodity requirements. In addition, inventory shortage and the risk of over-stocking which could arise due to uncertain demand patterns, is being managed through inventory buffering and the use of material requirement planning and forecasting software.
To minimise possible risks due to undue delays, product standardisation and supplier short-listing practices have been introduced.
Fundamental risks could also arise as a result of materials and equipment failing to conform to required quality standards. SLT manages this risk through an extensive process of quality inspection and control that sweeps across the entire procurement cycle. |
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