Supplier Selection and Creditor Rights

Every Company has certain requirements when selecting suppliers to be engaged as strategic partners in conducting its business, including the Bayan Group.

Bayan Group divides suppliers into 2 categories, namely:

  1. Primary Suppliers, which must be a business or legal entity, has average to large amount of capital, and has good reputation as well as experience in its sector. This category is particularly engaged to supply products material for Bayan Group in bulk amount and long term. 
  2. Non-primary suppliers are companies and or individuals supplying products or services in short term. 

Requirements for Suppliers:

  1. Is a legal entity or individual. 
  2. Has the product required by Bayan Group. 
  3. Has good experience and reputation in its field.
  4. Offers quality services and competitive price as well as high integrity. 
  5. Has sound financial and operational performance for at least the recent 3 years. 
  6. Others as may be determined according to types of goods/services procurement. 

Mechanism or procedure of Supplier Selection

Bayan Group determines a policy that requires goods or service procurement, whether material and continuous or temporary, to undergo a selection process. This selection process may be performed through open and/or closed tender and/or direct appointment under the condition of good cooperation record. To comply with this policy, Bayan Group performs the following:

  1. Assesses the profile and performance of prospective suppliers.
  2. Determines prospective suppliers 
  3. Contacts or requests the prospective suppliers to participate in goods and service procurement.
  4. Evaluate the documents submitted by prospective suppliers. 
  5. Ensures that the specifications of goods/services required can be met or provided by prospective suppliers.
  6. Negotiates with and selects the supplier. 

Supplier Rights and Responsibilities

Suppliers are entitled to payment of goods or service supplied according to agreement.