Supply Chain Management

The Group’s diversified businesses are supported by a wide range of suppliers and contractors. Many of the policies within the Group are implemented in close collaboration with the Group’s business partners. Through regular dialogue and cooperation, the Group and its partners are able to deliver sustainable value to all stakeholders.
 

Sourcing Responsibly and Engaging Suppliers

The Group addresses supply chain challenges through risk management, responsible sourcing, supplier engagement and oversight.

Approach to Supply Chain Management
The Group’s procurement activities follow a set of fair and transparent tendering process. Tenderers are required to declare any conflict of interestand take a firm stance against fraud and misconduct. Supplier relationships will be suspended or terminated if contravention is found.

The Group strives to bring a positive influence in the business community by setting expectations in environmental, social and governance related matters with key suppliers. For instance, ASW, the world’s largest international health and beauty retailer, has been upholding the Business Social Compliance Initiative (“BSCI”) Code of Conduct since 2008. With a goal to drive compliance, fair business practices and environmental performance, suppliers have been invited to acknowledge and endorse the BSCI Code of Conduct. ASW joined the Mekong Club, an association that provides valuable information and resources to combat modern slavery. The retail group is rolling out training for its employees as well as its suppliers.

Since 2017, UK Power Networks has introduced a new Supplier Relationship Management (“SRM”) framework approach with an active policy reinforcing the importance of Health & Safety in all aspects of work activity. It includes equipment supply and installation, seeking and sharing innovation, technological advances and continuous improvement. The SRM framework has been introduced across business units including Victoria Power Networks. Apart from adopting the SRM, UK Power Networks has paused the normal operations during safety stand-down days to engage in safety education. Meetings are held to monitor Lost Time Incidents and Very Serious Incidents. Regular project review and site safety inspections are also carried out.

Delivering Safe and Quality Products and Services
ASW builds trust with its customers from the get-go, starting with managing the reputation of OB products. For example, in PARKnSHOP, the five-step process guides the OB development cycle at the business unit level:
  

  • Social and governance:
Protect operations against unfair business practices
  • Supplier due diligence:
Encourage suppliers to adopt responsible operations and practices and comply with health, safety and worker welfare guidelines
  • Quality Assurance:
Ensure the quality, value and safety of products
  • Distribution:
Provide products that comply with all legislations in their distribution markets
  • Customer care:
Listen actively to customer feedback and respond to complaints
 

By providing guidance to suppliers of OB retail products and helping them meet the ASW expectations on product safety and quality requirements, suppliers are steered towards developing more sustainable and responsible products. In an effort to pioneer higher standards of health and hygiene, PARKnSHOP has set up Asia’s first multi-temperature distribution and processing centre, as well as Hong Kong’s first dedicated Food Safety Laboratory.