50 Our philosophy is to engage with the suppliers to maximize the shared value, beyond just cost, by creating new opportunities and at the same time reducing the associated risks. We also use the power profile grid to understand the supplier’s strengths and determine the value we can add to the relationship. Measuring risk across six attributes with a process of supplier self-rating and our assessment, we derive the Supply sustainability score, which is mapped to an overall risk rating of high, medium, and low. For each attribute classification, we have defined the competencies and ratings. The attributes include the six areas of HSE, Labor practices, Quality, Financial stability, Capacity and Management credentials, and other partnership-oriented factors like openness, reliability, responsiveness, strategic aspects, negotiation style, and supply chain architecture. In the reporting year, we carried out a Quality audit for 13 critical raw material suppliers with no major observations and 30% of the new vendors underwent HSE screening. Sustainable supplier engagement For a customized raw material required in one of our commercial projects, we developed a domestic supplier to localize our supply base, reducing lead time and inventory. As we worked through the engagement, we addressed challenges across quality and price factors to secure the supply. With a partnership approach we enabled the supplier on two critical aspects: 1. Process upgradation to meet Sai’s quality requirement. 2. Application of the OE model (Operational Excellence) where we enabled improved product yield and productivity in manufacturing to make the price competitive. Risk assessment Statutory (HSE, Labor, Litigation, Ethical practices) Quality - Right First Time, Specification Catastrophic risks Financial stability Contractual & capacity Management risks Making supplier engagement long term
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