SUPPLIER MANAGEMENT SYSTEM

SUPPLIER SELECTION AND SELECTION CRITERIAS

Kibar Holding Group Purchasing uses many methods to determine its suppliers to establish long-term relationships and strategic partnerships. All suppliers are expected to have strong governance systems in place. Respect for the environment, workers and the local community are all essential. In the selection of the firm;

  • Development,
  • Its future, stability and continuity,
  • References, reputation and experience,
  • Flexibility and support,
  • Quality assurance,
  • Commitment to responsible supply chains
  • Financial Structure,
  • License, distributorship, agency etc. Authorization Documents
  • The shareholding structure and other factors required by the related business area, if any, are taken into consideration.
  • Acceptance of the Supplier Code of Conduct

All potential suppliers can reach the Group Purchase by filling out the Supplier Identification Form, which is also available on this site. A preliminary interview is held with the company if it is deemed necessary for items that may affect production (automotive supply industry, aluminum semi-finished products, food raw materials and packaging main inputs, sheet metal, chemical, etc.). After this meeting, after determining that the potential company can meet the need, the company is evaluated by the quality and R&D departments and the sample production and testing phase is started with the companies with sufficient scores. Suppliers who are evaluated as positive as a result of these stages are added to the approved supplier list.

In line with Kibar Holding's targets and strategies, suppliers are constantly monitored under the following criteria:

  • Providing price advantage according to market conditions
  • Quality-Logistics performance meeting business expectations
  • Upholding the Supplier Code of Conduct
  • Responding to development / improvement requests submitted by Kibar Holding
  • Keeping up with developing and changing industry conditions
  • Compliance with the terms of the contract 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 addition to continuously providing the best and the highest quality products and services in parallel with ever-changing and developing global conditions, Kibar Holding A.S. is also committed to planning and maintenance of its business operations in line with the principles for social responsibility, environmental awareness, legal compliance and recognition of employees’ rights.

As required by joint accountability, suppliers are also expected to perform their business operations with the same level of responsibility and awareness by means of improving their working environment. Accordingly, each supplier already having a business relationship with our Company as well as those who plan to have such a business relationship are required to adopt and implement the Group’s Codes of Conduct for Purchasing, which are an integral part of Kibar Holding A.S. Codes of Conduct and created for the purpose of improving the efficiency of the relationship with the suppliers.

Kibar Holding A.S. treats all suppliers equally and undertakes to provide its suppliers an opportunity to allow them to act in a fair competition environment in terms of the information to be provided to its suppliers on the condition that Kibar Holding A.S. will observe its corporate interests, whose legal framework is defined by statutory regulations. Kibar Holding A.S. fulfills all of its obligations as soon as reasonably possible and uses its best efforts to prevent, eliminate, and resolve any problems that may arise

.

In line with the general governance principles as provided above, Purchasing Department working principles for suppliers are summarized as follows:

  • Kibar Holding A.S. believes that long-term success depends on close cooperation with its suppliers. For this reason, the quality of relationship with suppliers is of utmost importance.
  • Kibar Holding A.S. requires its suppliers to comply with general statutory rules and principles as well as Kibar Holding A.S. Codes of Conduct for Purchasing.
  • Kibar Holding A.S. expects its suppliers to cooperate for ensuring the Group’s Codes of Conduct for Purchasing.
  • Kibar Holding A.S. appoints its suppliers based on the principles of integrity/accountability.

Kibar Holding A.S. Codes of Conduct for Purchasing are based on the purpose for the standardization of the relationships between the suppliers and employees. These rules and principles are applicable to and binding upon both the purchasing employees and all personnel who may take part in purchasing operations.

When fulfilling their obligations, suppliers are obliged to follow all applicable laws and regulations in force, comply with such applicable laws and regulations, and ensure performance of their operations in compliance with the Labor Law. In this context, suppliers are expected to take into account the following matters and have comprehensive knowledge about working principles.

Human Rights: Suppliers shall commit to respecting Human Rights and refrain from being an accomplice to any violation of such human rights thereof.

Compulsory Labor (Forced Labor): Supplier employees cannot be forced to do labor in any way. This requirement includes compulsory labor in prison, employment in exchange for high-interest debt, and other forms.

Child Labor: The Supplier shall not use child labor. Unless an higher age limit is specified by local legislation, individuals below the age of 15 who have not yet completed their education may not be employed (within the scope of International Labor Organization Contract No. 138) Individuals under the age of 18 may not be employed for jobs posing a risk of death and may not be employed on night shifts due to the fulfillment of their educational needs.

Harassment: Supplier employees should not be subjected to physical harm, or physical, sexual, psychological or verbal harassment or sexual assault.

Bribery: The Company must not offer, give, request or accept payments, payments in kind, bribes, gifts or favours of any kind to win or influence business. The company may not offer any KİBAR personnel, bribes under any names or circumstances.

Compensation: The Supplier must compensate its employees at or above minimum wage specified by laws and legislation, including salary and overtime payments.

Freedom of Association and Non-retaliation: Workers shall be able exchange views with management on salaries and working conditions without fear of retaliation.

Working Hours: Unless otherwise provided in applicable national laws on working hours and save as exceptional circumstances at work, the supplier’s employees shall not work for more than 11 hours a day and more than a total of 60 hours (including overtime) during a work week. Employees should be given at least a day off within every 7-day period save as exceptional circumstances at work.

Discrimination: The Supplier must treat all employees according to their professional abilities without regard to their race, ethnicity, language, religion, sexual orientation, gender, and political and ideological views, during all stages including but not limited to recruitment, promotion, compensation, benefits, training, mandatory dismissal and termination of labor contract.

Local Communities: Suppliers shall respect and work with local communities on charitable projects.

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

In order to ensure corporate sustainability in all areas, Kibar Holding primarily observes its job security, environmental and quality policies. While managing its operations, Kibar Holding takes care to take all necessary measures to protect natural resources and minimize waste.

The Kibar Group companies act with the awareness and responsibility of environmental issues that have become global today, such as population growth in all activities and consequently unconscious use of decreasing natural resources, climate change, decreased biodiversity and increased pollution. Since environmental problems bring serious risks for both the industry and society, Kibar Holding A.S. has adopted the principle of acting consciously and responsibly in this regard.

While structuring business processes in all sectors of the Holding's field of activity, it is aimed to contribute to all stakeholders being environmentally conscious and conscious individuals in order to establish a sustainable future with environmentally friendly practices and necessary measures. In Kibar Holding A.S., adopting the environmental sustainability approach by all our business partners including our suppliers is among our priorities.

The supplier must be able to demonstrate that it fully complies with all legal regulations for environmental protection in all its activities. The supplier shall actively work to maintain and improve levels of biodiversity around their site.

Biodiversity: The Company hereby undertakes to use its best efforts in an effective manner in order to maintain and improve the levels of biodiversity in and around its own facilities and premises thereof.

OHS

In Kibar Holding A.S., precautions and practices for occupational health and safety are considered as an indispensable element of the working and production process. The principles adopted by the group in this framework are listed below and apply to all suppliers:

  • To provide a healthy and safe work environment to its employees to prevent accidents and injuries and, where applicable, healthy and safe residence facilities in accordance with local laws in force. For this reason, the supplier should carry out activities that reduce the risks threatening potential employee safety, and create systematic activities that ensure the health and safety of employees, taking into account the relevant standards and laws.
  • To implement and continuously improve activities related to occupational health and safety,
  • To comply with the standards stipulated by the current occupational health and safety legislation.
  • To determine the dangers in advance and to eliminate them by making risk analysis.
  • To raise awareness and continuously train employees about occupational health and safety

Kibar Holding A.S. requests its suppliers to identify and control any adverse effects that may harm human health, to prevent injury and health deterioration, to continuously improve, to comply with the Occupational Health and Safety Law No. 6331 and the regulations, regulations and communiqués issued thereto. Kibar Holding A.S., which is aware of the fact that the most important factor is to create an awareness of occupational health and safety in the community, demands that all suppliers and employees meet the need for training for occupational safety and create a behavioral culture together with technical knowledge by taking proactive approach in addition to legal OHS training.

Kibar Holding A.S. expects its suppliers to adopt occupational safety and improve their self-control and protection skills by using development / improvement methods in the control and follow-up of occupational safety studies.

In order to ensure the effective implementation of these principles adopted within the scope of OHS, risk analysis studies are conducted in all operational areas of the group and measures are taken to minimize the identified risks.

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.