Sustainable Supply Chain Management Policy
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1 Sustainable Supply Chain Management Policy CSUS-PO001, Issue 1.1 Sharda Centre, Off Karve Road, Erandwane, Pune, Maharashtra, India Copyright 2013, Tech Mahindra. All rights reserved.
2 Table of Contents 1. OBJECTIVE SCOPE APPLICABILITY ACRONYMS AND DEFINITIONS HIGH LEVEL DETAILED VENDOR EVALUATION AND PERFORMANCE REPORTING PROCESS SSCM PERFORMANCE ASSESSMENTS PROCESS ROLES AND RESPONSIBILITIES REFERENCES DOCUMENT HISTORY... 5 CSUS-PO001I1.1 Business Management System Page 2 of 5
3 1. OBJECTIVE Tech Mahindra s commitment to corporate responsibility is demonstrated by fully integrating corporate sustainability into the way we do and report upon our business objectives and performance. We recognize Tech Mahindra s social, ethical and environmental responsibility extends to our supplier relationships. Our Sustainable Supply Chain Management processes are transparent to our shareholders, suppliers, and stakeholders. 2. SCOPE This policy applies to the sourcing of products or services for Tech Mahindra, including products or services sourced from: local or international suppliers; by tender (Request for Proposal); or by negotiation with a targeted or strategic supplier or a joint venture partner. 3. APPLICABILITY The application of this policy is targeted to sourcing activities with key suppliers (Top 10 suppliers amounting to highest Spend by Tech Mahindra) across the globe Supplying product or services to locations in India. 4. ACRONYMS AND DEFINITIONS Term/ acronym Tech M SSCM RAP GRI SME UNGC SAP Explanation Tech Mahindra Limited Sustainable Supply Chain Management Remedial Action Plan Global Reporting Initiative Small and Medium Enterprise United Nations Global Compact Sustainability Action Plans 5. HIGH LEVEL 1. Engage suppliers that demonstrate a commitment to take account of their own corporate social responsibilities, and with an overall philosophy, approach and specific policies complementary to our own. Suppliers must share our commitment to best practice, continuous improvement, and collaborative approaches, and commit to our requirements as per the SSCM Supplier Code of Conduct. 2. Deal in good faith, ethically and responsibly with suppliers, and build trusting, cooperative and long-term relationships. CSUS-PO001I1.1 Business Management System Page 3 of 5
4 6. DETAILED The detailed policy is given below: 1. Seek higher standards of performance from the top 10 high spend and higher risk key suppliers via our SSCM Questionnaire and, where necessary, Remedial Action Plan(RAP). 2. Adopt an approach that makes efficient use of Tech Mahindra and supplier resources, as per the Tech Mahindra SSCM Code of Conduct for Suppliers. 3. Deliver social and environmental benefits for Tech Mahindra, our suppliers and the broader community, by encouraging practical and effective social, ethical and environmental responsibility by our suppliers 4. Encourage our suppliers to make available cost-effective, environmentally and socially responsible products and services 5. Create other benefits for our company, such as reduced costs, improved risk management, enhanced quality, and product or service innovation. 6. Ensure SSCM does not discriminate against SME or local vendors (where such vendors could meet the needs of Tech Mahindra) 7. Ensure both the accuracy of the information provided by suppliers and improvement of the underlying performance, through the use of audits, third party verification and similar processes. 7. VENDOR EVALUATION AND PERFORMANCE REPORTING PROCESS 1. As part of evaluating potential suppliers, Tech Mahindra assigns weightings to the social, ethical and environmental performance of suppliers within the sourcing process, and through our SSCM Code of Conduct sets minimum standards for all suppliers. During supplier evaluation process, if all other factors are on par between potential suppliers, then the company will give preference to the local supplier or small producer and thus procure goods locally. For consumable and operational services, we prefer to connect with local vendors to supply us with the necessary manpower and other requirements. 2. In addition we undertake detailed assessment of high spend and higher risk suppliers to ensure a more in-depth understanding of the social, ethical and environmental business practices of those suppliers. 3. This assessment process is comprehensive, uses unambiguous criteria and is designed to apply to all business units across Tech Mahindra. 4. In addition to our assessment processes we offer to work with our suppliers, to assist them in improving their SSCM performance and reporting. 5. Where there is a failure to meet Tech M s SSCM performance standards and a supplier is unwilling to agree to remedy the issue, Tech Mahindra will take action to address the situation including contract termination. CSUS-PO001I1.1 Business Management System Page 4 of 5
5 8. SSCM PERFORMANCE ASSESSMENTS PROCESS Tech Mahindra draws on the principles of the United Nations Global Compact to determine its SSCM policy and, acknowledges the Global Reporting Initiative (GRI), (including GRI reporting indicators) as providing the framework for reporting on environmental, social and economic impacts. 9. ROLES AND RESPONSIBILITIES Roles a. Procurement Team, b. Resource Management Group c. Education Services Group. d. Technology Infrastructure Management Corporate Sustainability Team Responsibility 1. Data management of suppliers 2. Providing details of suppliers/vendors for audit purpose 1. Sending out of the Supply Chain questionnaire 2. Facilitating responses from the suppliers QWAY Process Improvements 10. REFERENCES SSCM Supplier Code of Conduct- CSUS-PO002 SSCM Questionnaire- CSUS- CL DOCUMENT HISTORY Version Issue 1.0 Issue1.1 Date 16 th April, th March, 2016 Author (function) Abhineet Gupta Ashwini Chaudhari Reviewed by Approved by Nature of changes Rajith Athrayil/ Anuja Sharma (QWAY) Vidya Jayakrishnan Sandeep Chandna Sandeep Chandna First Integrated Issue Added the point concerning local supplier in supplier evaluation section CSUS-PO001I1.1 Business Management System Page 5 of 5
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