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Maybank Sustainability Report
2014
Strategic
Procurement
Decreasing Cost and Risk, Increasing Productivity
Strategic procurement ismore than just aligningpurchases against a panel of
suppliers. The approach takenhas enabled all departments to streamline their
purchases, incorporate goodgovernance guidelines, andmake a transition
from ‘ad-hoc’ to long-termstrategic procurement. As a result, wehave
decreasedour overall cost, risk, and increasedproductivity for theGroup.
The inception of Strategic Procurement took place in 2010. We have
now transformed to a centralised framework that ensures competitive
prices, transparency, and benefits of group purchases. The transformation
took into consideration areas such as strategic analysis of spend data,
fair, equitable, and auditable sourcing process, structured negotiation,
comprehensive risk-minded contract execution, and effective supplier
relationship management. As our business expanded, there was a need
to enhance compliance across different procurement teams and increase
transparency and accountability.
For example, each Sector in every country now has a standard approach
to procure products and services. Tender templates, and technical and
financial bids are standard tools that enable easier comparison of multiple
bids and to ensure compliance. In addition, a new extensive catalogue
with standardised pricing is available. Ninety-five percent of new tenders
use the catalogue in the system, making the bidding process more
competitive. This has generated a savings of 20-25% in contract renewals
as well as 10% over the top savings from process efficiencies.
Centralising the procurement function into a seven-step sourcing
process has also brought efficiency. The efficiency is through clear roles
and responsibilities for all stakeholders within the procurement cycle.
Maybankers at all levels can plan their work and be ensured that timelines
are met without compromising commercial and technical interest as well
as compliance. Such sourcing approach improved from no visibility or
traction of project plan to sourcing projects driven by mutually agreed and
committed milestones by all stakeholders.
Apart from system efficiency, we have over the years, empowered various
small businesses. Our procurement system has provided an avenue for
small and medium companies to do business with Maybank, thus ensuring
a fair chance of economic redistribution, be it with large, medium or small
companies.
In 2015, Group Procurement will be reviewing standard terms of contract
to incorporate terms that specifically oblige suppliers to adhere to
requirements of fair labour practices, respect for human rights and non-
discrimination as well as environmental protection.
G4-12, G4-41