44 ....................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 75% suppliers with TPTO support 10% suppliers addressed to reduce single source dependency 10% suppliers addressed to reduce import dependency 50% suppliers addressed for lead time reduction Total number of vendors registered Number of vendors undergone quality audit Number of KSM vendors undergone HSE screening 130 97 97 For imported supplies, cargos are consolidated for Inland Container Depot, Hyderabad Reduced movement of 35-40 trucks every month with a volume of 200MT to 300 MT every month For inland supplies, consolidating the cargos at one common point by redefining logistics contract Reduced movement of 100 trucks per month with a volume of 150MT to 200MT Reduction of emissions in logistics We take responsibility for a reliable supply chain as our customers rely on it for the development and manufacture of their products. They have expectations that we demonstrate appropriate oversight and management of the supply chain, in order to manage the timeline and ensure the products reach the patients who need them. Supplier relationship management plays a prominent role. We are geared up by undertaking supplier segmentation and have created further support through the Third Party Technical Overview group (TPTO) mechanism. The TPTO group is formed by constituting stakeholders from key functions -- SCM, PR&D, AR&D and CQA so as to jointly identify and shortlist strategic partners who commit to transparency and collaborative processes as we procure specific key starting materials (KSM) and critical raw materials.. Suppliers supported through TPTO supply us: • Key starting materials and critical raw materials which are commercially not available • Materials with no history of manufacturing by Sai’s approved CRO partners • Materials not available through catalogue companies Through the TPTO group, we have outlined specific areas of intervention to ensure sustainability success in our supply chain. The functional objectives are derived based on the basic principles of PSCI and UNGC which broadly covers the areas such as Ethics, Human Rights and Labour, Health and Safety, and Environment and Management Systems. Additionally, we are in the process of defining the Sustainable Procurement Framework which brings together the various standard operating procedures currently implemented for the management of the supply chain. A specific focus is undertaking vendor evaluation and qualification across competencies of Quality, Environment & social responsibility, Technology, Innovation, Continuous Improvement and Business continuity. During the qualification process, our initial environmental and safety touch points include -- statutory clearance as the base document, the number of incidents in the last three years, and site visits to ascertain environment and safety parameters. While we work with our suppliers, our decisions regarding inland logistics also demonstrate our environmental responsibility. We have created Product-specific engagement Initiatives with our suppliers to build long-term partnerships and mutual growth which makes us credibly meet our customer commitment: • Encourage the supplier to make downstream and upstream products • Offering to procure a range of products to retain and engage the supplier • Convert transactional supplier to strategic supplier by moving to vendor-managed inventory as part of strategic initiation Supply chain sustainability Supplier Evaluation (HSE & Quality focus) 4. Sustainability continuum in the supply chain
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