Page 72 - SD RATCH EN

72
Sustainability Report 2020
RATCH Group PCL.
2. Contract management
Contracts are the legal document that binds RATCH and suppliers, indicating both parties’ mutual agreements to conditions. RATCH ensured the criteria and conditions specified in the contracts complied with laws and the Company’s rules. All suppliers must endorse the criteria and contractual conditions before signing. In 2020, no suppliers breached contracts.
3. Supplier performance assessment and supplier grouping
RATCH requires the assessment on suppliers’ performance in 4 aspects - quality, quantity, delivery and operational practices of suppliers or contractors. The Company sends recommendations to the suppliers who failed in the assessment, for subsequent improvements. Suppliers who pass the assessment are registered to the desirable supplier database, which serves as pre-qualification and ensures more efficient and faster procurement process.
Suppliers are divided to 5 groups, according to contract period, procurement value, qualification assessment result, performance assessment, as well as type of products and services.
Suppliers in 2020
No. of suppliers
%
Suppliers under performance assessment
138
100
Suppliers which failed the assessment (RATCH recommended improvements before they could make new bids.)
0
-
Blacklisted suppliers
0
-