SUPPLIER MANAGEMENT SYSTEM

SUPPLIER SELECTION AND SELECTION CRITERIAS

While determining its suppliers with which it is to establish long term relationships and strategic partnerships, Kibar Holding Group Procurement Organization uses many methods. In selection of the firm, the following factors are taken into consideration: The firm’s;

  • Development,
  • Future, stability and going concern structure,
  • References, reputation and experience,
  • Flexibility and support,
  • Quality assurance,
  • Financial structure,
  • Authorization certificates such as license, distributorship, agency, etc.; and
  • Partnership structure and, if any, such other factors as are required by the line of business.

All potential suppliers may access the Group Procurement Organization by filling in the Supplier Identification Form which is also accessible over this website. In terms of items that may affect the production (automotive subsidiary industry, aluminum semi-finished products, food raw materials and packaging main inputs, sheet metal, chemical, etc.), a preliminary meeting is held with the firm if deemed necessary. Following this meeting, after determining that the potential firm may respond to the need, the firm is evaluated by the Quality Assurance and R&D Departments and sample production and testing stages are proceeded with the firms having the necessary scores. The suppliers evaluated to be positive as a result of these stages are added to the certified suppliers’ list.

In line with the targets and strategies of Kibar Holding, suppliers are monitored within the scope of the following criteria on a continual basis:

  • The fact that the supplier provides price advantage according to the market conditions;
  • The fact that quality-logistics performance meets the group companies’ expectations;
  • The fact that the supplier acts in accordance with the Environmental Rules and Code of Conduct;
  • The fact that the supplier responds to the development/improvement demands communicated by Kibar Holding;
  • The fact that the supplier keeps pace with the developing and changing sector conditions; and
  • Compliance by the supplier with the terms of the contract it has signed with Kibar Holding

CONTRACT MANAGEMENT

Signature of Kibar Group Framework Contract with supplier is the prerequisite of the procurement process. Supplementary contracts may also be signed specific to purchases to be made after these contracts.

All the pages in the original copies of the purchase contracts should have been signed by suppliers according to their list of authorized signatures. Suppliers are absolutely required to share their list of authorized signatures.

In works requiring advance payment, a letter of guarantee the amount of which is as much as at least the advance amount is received from supplier.

Within the scope of the contract having expired or for which no extension protocol has been made, no purchase is made. For purchase, a new contract is made or an extension protocol is made for the new period.

ORDER, RECEIPT AND INVOICING PROCESS

The subjects to which our suppliers should attach particular importance in these processes are listed below:

  • Transacting absolutely with consignment invoice in goods deliveries and writing the numbers of order and receipt onto such consignment invoice;
  • Writing the numbers of order and receipt onto the invoice upon completion of the work in terms of service invoices;
  • Communication of the invoices to the Financial Affairs Department of our respective group company so that the above-mentioned numbers will be complete and not sending any invoice to Purchase teams;
  • Sending the e-invoices to be made out with “Commercial Scenario”;

Since invoices not being in compliance with the above conditions will be sent back to be corrected/to which numbers are to be added by Financial Affairs Department/Documents Office, nor will they be accepted to the system and payment delays will be experienced with invoices with missing records, particular attention should be paid on this subject.

Issuance of invoices of the goods and services the deliveries of which are completed and the acceptances of which are realized in accordance with the contract and orders is provided by our suppliers as specified above.

SUPPLIER PERFORMANCE EVALUATION

In line with the actions we determine after Supplier Performance evaluation, the development of our suppliers being our most important business partners is carefully monitored by Kibar Holding Group Prorcurement.

IKibar Group companies carry out the evaluation and inspection activities for measurement of the performances of all suppliers on a periodical basis. Suppliers are classified and evaluated in line with the “annual procurement volume” at certain periods and the criteria determined. In line with the actions we determine after supplier performance evaluation, the development of our suppliers is carefully monitored by Kibar Holding Group Procurement.

CODES OF CONDUCT

In parallel with the continually developing and changing world conditions, Kibar Group companies not only render the best and finest quality service at all times, but also plan and continue its activities within the framework of social responsibility, environmental consciousness and respect to employee rights. As a requirement of joint responsibility, our suppliers are also expected to operate with the same responsibility by developing their own environment with this consciousness. Being an integral part of our Codes of Conduct formed with a view to enhancing the efficiency of relationships with suppliers in line with this and in addition to this, the Procurement Codes of Conduct are expected to be adopted and implemented by each supplier with which we are to work and we are currently working.

Provided that the corporate benefits the framework of which has been determined by legal arrangements are based upon, Kibar Group treats all its suppliers equally and undertakes to provide its suppliers with the opportunity to act within a fair competition environment in terms of the information they are to obtain from the Group.

In consideration of the general governance rules specified above, the basis for working with suppliers for Procurement Units has been summarized as follows:

  • Kibar Group is of the belief that success may be obtained with its suppliers in the long run. Therefore, the quality of relationship with the suppliers is exceedingly important.
  • Kibar Group obliges its suppliers to comply with the general legal rules and Codes of Conduct.
  • Kibar Group expects its suppliers to act together regarding ensuring the Group Rules of Conduct.
  • Kibar Group determines the suppliers with which is to work based on the principle of trust.
  • Kibar Group’s Procurement Rules of Conduct are based upon the purpose of setting standards for relationships among suppliers and employees. These Rules are not only binding upon the purchasing agents, but also upon all employees to be able to take role in procurement activities.
  • While performing their obligations, suppliers are required to observe, comply with the related laws, legislation in force and make sure that it operates in compliance with the Labor Law. Within this scope, the headings given below are expected to be taken into consideration and made dominant over the working principles by suppliers:

    Forced Labor: Not any employment should be implemented using force on supplier employees in any way. This requirement comprises also forced labor application in prison, employment against debt with high interest or other forms of employment of this kind.

    Child Labor:: Supplier should not employ child labor. So long as a higher age limit is not determined in local laws, any person not having completed his/her compulsory education and being under the age of 15 (except for situation specified in ILO Convention No.138*) should not be employed. Employees under the age of 18 should not be employed in works posing risk and at night works with a view to meeting the education needs.

    Abuse:: Supplier employees should not be exposed to corporal punishments or physical, sexual, psychological or verbal abuse or assault.

    Indemnity: The salaries of supplier employees including profit and overtime pays should be equal to the minimum level specified in the laws and regulations in force or above such level.

    Working Hours: Unless national laws specify less maximum working hours and except for extraordinary lines of business, supplier should not request the employees to work more than 48 hours a week on a regular basis and more than 60 hours in total (including overtimes) during a working week in total. Except for the extraordinary lines of business, the employees should be on leave minimum one day within a period of every seven days.

    Non-Discrimination: Supplier should act towards all employees according to their skills and qualifications without any discrimination with respect to race, ethnic origin, language, religion, sexual preference, gender, political and ideological opinions in its decisions with respect to employment including, but not limited to, employment, promotion, benefits, training, forced dismissal and termination of job.

    Health, Safety and Environment: Supplier should provide its employees with a healthy and safe working environment for prevention of accidents and injuries and, where applicable, healthy and safe facilities of residences in accordance with the local laws in force. For this reason, supplier should realize activities to decrease the potential risks threatening the safety of employees and form systematic activities guaranteeing the health and safety of employees by taking into consideration the relevant standards and laws. Supplier should also be in the position to be able to prove that it also complies with all the legal arrangements with respect to protection of environment fully in all its activities.

QUALITY PRINCIPLES

Our suppliers should develop, document, and implement a Quality Assurance System to comprise all their processes, and review the efficiency thereof and ensure its consistency.

Our suppliers should have accessible and measurable quality targets for meeting, monitoring and continually improving the material and service conditions.

In order to review, improve and update the quality management systems, review meetings are held every year. Continual development is targeted in all processes with the excellence model target in the quality assurance system. Furthermore, suppliers and customers are encouraged to participate in this proactive process in the Holding and all of the subsidiaries.

Compliance of Kibar Holding Group Companies operating in a wide range of industries with the Quality Assurance certificates they have is followed up with continual and regular internal controls and, if appropriate, improvement studies are carried out. The part taken by our suppliers being one of the pillars of the quality management systems and the studies carried out towards suppliers in this process is of prime importance.

ENVIRONMENT

Kibar Holding primarily oversees the occupational safety, environmental and quality policies in its activities in order to ensure the corporate sustainability in all areas in which it operates. While managing its operations, Kibar Holding takes care to take all the necessary measures in order to protect the natural resources and minimize the waste quantities.

In all of their operations, Kibar Group companies act with the awareness and responsibility of the environmental problems having become global problems today such as population increase and unconscious use of natural resources decreasing depending thereon, decreased biodiversity and increased pollution. As environmental problems have brought significant risks together for both the sector and society, Kibar Group has adopted acting responsibly and consciously on this subject as a principle. While structuring the business processes in all industries which fall within the area of activity of the Holding, one aims at contributing in all stakeholders being conscious individuals sensitive to environment in order to build a sustainable future by means of environmentally friendly practices and necessary measures. Adoption by all our business partners including our suppliers of environmental sustainability understanding in Kibar Group is among our priorities.

HSE

The measures and practices with respect to occupational health and safety in Kibar Group are considered to be an indispensable element of the working and production process.

The principles adopted by the Group within this framework are listed below:

• To implement and continually improve the activities with respect to occupational health and safety;
• To comply with the standards provided for by the occupational health and safety legislation in force;
• To identify beforehand the hazards by carrying out risk analyses and to ensure that such hazards are removed; and
• To raise awareness among employees regarding occupational health and safety and to train them on a continual basis.

Kibar Group expects its suppliers to determine any kinds of negative effects that may be harmful to human health, keep such effects under control, prevent injuries and deterioration in health, ensure continual improvement and compliance with Law No. 6331 on Occupational Health and Safety and the regulations, statutes and communiqués issued depending thereon.

Being aware of the fact that the most important factor is training for occupational health and safety awareness to be formed within the society, Kibar Group requests all its suppliers and employees to meet the training need with respect to occupational safety with a proactive approach along with legal HSE trainings and create a behavioral culture together with know-how.

Kibar Group expects its suppliers to use the development/improvement methods in control and follow up of the occupational health and safety efforts for all their employees to adopt occupational safety and enhance their skills to control and protect themselves.

With a view to ensuring the application of these principles adopted within the scope of HSE in an efficient manner, risk analyses are carried out in all areas of operation of the group and measures are taken in order to minimize the risks identified.

R&D

Kibar Group attains many goals it has set such as raising the productivity, decreasing the source usage and waste production, decreasing the costs and risks while enhancing the product quality and diversity, production of new technologies and products and attaining a more competitive position in world market in the long run thanks to the R&D activities shaped taking into consideration the expectations and requests of its stakeholders.

The fact that all the activities in Kibar Group are in the quality providing added value towards the needs and expectations of customers on a continual basis is supported with the understanding “innovativeness”. By means of people oriented innovativeness understanding, one starts out from the improvement of life qualities of all stakeholders including our suppliers, mainly employees and customers.