41 3. Embed sustainability priorities into the day-to-day procurement process We consider the sustainability aspects during supplier selection when awarding contracts to key suppliers. Sustainability is integrated into contract management, and a culture of continual review and learning from the contract is implemented and lessons from current experiences are applied in future sourcing considerations. We are ensuring that third party manufacturing sites are audited for HSE and based on the feedback we go ahead with our partnership. In the reporting year, we did not go ahead with one of the manufacturing sites as they fell short of our HSE expectations. We qualify our vendor through a methodical process of evaluation, qualification and onboarding. Our implementation process involves five key steps: Identification, evaluation, qualification, provisional approval, and final onboarding of vendors. We evaluate the competencies of our key suppliers in specific areas and the questions for which we seek inputs are: Quality: Do they meet product quality as per pre-agreed specifications. Environment and Social Responsibility: Are prescribed guidelines met with zero tolerance. Technology: Does the supplier have core competency in terms of adequate infrastructure and a pool of talented and qualified professionals. Innovation: Is there aptitude to absorb new technologies and ability to keep pace as per market dynamics. Continuous improvement: Is the supplier able to demonstrate periodic review of all processes and implement improvement plans as required. Sustainability and dependability: Is there a business continuity plan in place at the supplier organisation? Supplier Sustainability Diversification • Supplier Code Conduct • Supplier Evaluation through PSCI Guidelines • Periodic Supplier Risk Assessment • Supplier Relationship Management • Third Party Technical Overview Team • Working on geographically diversifying our procurement • Searching for domestic alternatives to the current suppliers 63% 35% 2% Location of key suppliers Others (USA, Taiwan, Japan) China India 32% 58% 10% Micro Small Medium In the reporting year: • No. of KSM suppliers during the beginning of the year, April 2023: 153 • No. of New KSM suppliers added in FY 2024 (April 2023 to March 2024): 5 • No. of suppliers registered (Overall) in the year FY 2024 (April 2023 to March 2024): 85 We are consciously working towards cultivating supplier relationships in the local region. The SCM team is also focused on creating supplier diversity in the various services we source from local partners. Total number of vendors registered 96 Percentage of new suppliers that were screened using social criteria 20 Number of vendors that underwentquality audit 30 Number of new suppliers that were screened using environment criteria 34 (It is being done only for KSM vendors)
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