Engaging Our Suppliers

A key aspect of our stakeholder  network is our suppliers. Developing  and maintaining successful business  relationships with our suppliers are vital  in achieving our KPIs in three areas; yield  (production of FFB), production cost and  Profit Before Tax (PBT).

These efforts are underpinned by  guidelines of the MSPO and RSPO, which  describes our commitment to respecting  human rights, adhering to national laws,  becoming more inclusive of smallholder  farmers and increasing the traceability of  our supply chain. We encourage all our  suppliers to comply with these guidelines  throughout their operations, including  traders and their third parties.


Sustainable Procurement and Supplier Assessment

We subscribe to efficient, fair and transparent procurement practices. Since 2010, we have established an e-procurement  system to process the purchase of goods and services electronically. The bottom-line benefits of having the  e-procurement system in place includes cost reduction, process efficiencies, improved accountability, spending controls  and compliance.

For contracts valued RM500,000.00 upwards, tenderers are required to bid via our e-bidding system which allows for a  fair and transparent bidding process among our tenderers.

We have held dialogues and briefing sessions to assist our contractors and suppliers to familiarise themselves with our  procurement process. In addition, during every tender site visit, the contractors and suppliers are briefed once again on  the process which include training sessions on the e-bidding system.

The Group also takes cognisance on local contractors and suppliers who contribute to the local economy as well as  involving sustainability practices in their operations, delivery and services.

Within this framework, we know that our suppliers are at different stages of progress towards sustainability. This means  that we work with them in different ways so that, together, we can improve on our Economic, Environmental and Social  (EES) impacts. In practice, this results in a combination of approaches, including proactive engagement which are aimed  at improving standards and responding to challenges that are brought to our attention.

In 2018, TDM assessed seven new suppliers and contractors and 14 existing suppliers and contractors on their  sustainability delivery and services, which also included human rights policies and practices.

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