Supplier Chain Policy

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1. OUR MISSION

1.1. The mission of Manteecorp (Pty) Ltd

Manteecorp (Pty) Ltd is dedicated to the highest quality of customer service delivery with a sense of warmth, friendliness, individual pride and company spirit. To our employees, we are committed to providing our employees a stable work environment with equal opportunity for learning and personal growth.
Creativity and innovation are encouraged for improving the concern, respect, and caring attitude within the organization that they are expected to share externally with every Manteecorp (Pty) Ltd customer.

1.2. Key Values

A key component of providing the highest quality of customer service and a stable work environment are low prices. In order to keep our prices low we must keep our cost low. We are therefore dedicated to finding ways to lower our costs and increase our productivity and quality. We value suppliers who have the same focus and look internally for ways to improve their process and service, and readily pass on cost savings to Manteecorp (Pty) Ltd.

Manteecorp (Pty) Ltd is also dedicated to creating to creating an environment to trust and respect for its customers, employees, and suppliers. Employees are expected to maintain the highest ethical standards and conduct business with integrity, and in a manner that excludes considerations of personal gain. We require the same ethical standards and conduct from our supplier. We value diversity and seek to create an environment that encourages it, both in the workplace and among our suppliers.

1.3. The mission of the Procurement Department

While adhering to the company mission statement, we are committed to maintaining Manteecorp (Pty) Ltd through effective and efficient procurement, delivery of the highest quality and performance of products and services, sound management practices - ensuring that we spend our valuable capital wisely.

2. THE WAY WE DO BUSINESS

It is important that everyone involved in the procurement process; procurement department, their internal customers, our suppliers and potential suppliers, all have a common understanding of the procurement process at Manteecorp (Pty) Ltd. This understanding helps ensure that our goal of maintaining high customer service is maintained at Manteecorp (Pty) Ltd:

(a) All suppliers are treated fairly and impartially during the evaluation and selection process. We use more than one selection process depending on company requirements and supply market conditions. Each selection process, however, is focused on the most efficient way to achieve the same result-the best value combination of quality, reliability, and cost for Manteecorp (Pty) Ltd at the lowest total cost.

(b) We pursue a proven strategic sourcing methodology that includes cross-functional teams, identification of total cost drivers and detailed requirements, market research, competitive binding where appropriate, and continuous improvement in quality and processes. We expect our suppliers to initiate cost reductions, quality improvements, or process efficiencies. We consistently make our supplier selections and conduct our ongoing performance evaluations based on, but not limited to best value, delivery capability, integrity, financial strength, supplier diversity, and commitment to continuous improvement of products, service, and process.

(c) All projects with supplier spending of $350, 000.00 or greater, and all spend categories or supplier relationships with annual spend of $350, 000.00 or greater must be evaluated utilizing the company’s strategic sourcing process, unless granted exemption by the Executive Chairman and or Chief Executive Officer. If a contract currently exists, this process will begin in conjunction with the approaching expiration date of the contract.

(d) During formal sourcing events, only invited suppliers are allowed to participate. Invited suppliers must follow the sourcing process as outlined at the beginning of the sourcing event. Additionally, suppliers must follow all established procurement procedures or Order Routine Specifications (ORS) when doing business with Manteecorp (Pty) Ltd. Failure to adhere to these processes will result in the supplier being ineligible to bid or do business with Manteecorp (Pty) Ltd.

(e) Our goal is to measure the effectiveness of each supplier program. We regularly re-evaluate programs, and are willing to consider new suppliers that provide improved value to Manteecorp (Pty) Ltd. We value long term relationships with our suppliers when their loyalty is evidenced by competitive, proactive service to Manteecorp (Pty) Ltd.

(f) We expect our suppliers to cooperate in regularly proving accurate metrics and reporting that allow us to measure performance and address any deficiencies.

(g) We support disadvantaged, small, minority-owned, and women-owned businesses when they can meet our quality and cost objectives. We have an active supplier delivery program at Manteecorp (Pty) Ltd. We require that all information obtained regarding Manteecorp (Pty) Ltd business, that is not readily available to the public, be considered confidential and not for disclosure to others.

(h) We prohibit supplier’s use of Manteecorp (Pty) Ltd name or logo for any purpose without specific written authorization from procurement department. This includes the use of any of Manteecorp (Pty) Ltd’s trademarks, signage and markings thereof

(i) We pay suppliers on-time 15-30days in accordance with our contractual agreements when products or services have been received and we are presented with an accurate invoice. And accurate invoice bears the appropriate purchase order number and must match the purchase order in all material respects.

3. COLLABORATIVE PROCUREMENT – ROLES AND RESPONSIBILITIES

In order to make the best possible purchasing decision for Manteecorp (Pty) Ltd, we utilize a strategic sourcing process that includes cross-functional team led by a designate of the Head of Operations. The customer leader may be asked to provide designate in certain circumstances. The leader of the cross functional team is responsible for the coordination of the strategic sourcing process and for assuring that all applicable steps have been executed. Approvals for supplier selection and awarding business are made jointly by the team led by the Head of Operations. The primary role of each group is described below

3.1. The role of the procurement department

With regards to the procurement of goods and services for Manteecorp (Pty) Ltd, the following are considered:

(a) To work with internal customers to develop requirements for spending.

(b) To maintain expert knowledge of the supply markets and develop the best strategy for procuring goods and services.

(c) To communicate requirements to suppliers and ensure that proper metrics are in place to measure contract performance.

(d) To work with customer departments and planning to coordinate agreements on negotiated savings attributed to strategic sourcing activities.

(e) To coordinate the creation of the contract, and its review and approval, by all key stakeholders.

(f) To monitor supplier performance and resolve issues that arises.

(g) To establish and maintain company procurement policy and procedures.

(h) To communicate and train employees on company procurement policies and procedures

(i) To decrease transaction cost related to procuring goods and services, while maintaining excellent customer service.

(j) To monitor contract expiration timing and coordinate evaluation activity.

(k) To work with customer departments to identify savings opportunities and with the finance department to set annual savings targets through a category planning process.

(l) To develop control and reporting to detect and reduce off contract spend.

3.2. The role of internal customer

In cooperation with the procurement department, the following are considered:

(a) To ensure that all eligible spend follows the strategic sourcing process.

(b) To define spending requirements through the development of annual operations plan.

(c) To define the functional requirements necessary for sourcing.

(d) To create the business case and secure approval for capital assets or project authorization requests

(e) In cooperation with the procurement department, incorporate agreed upon negotiated savings from sourcing events into the annual operations plan.

(f) To work with supplier to resolve day to day operational issues.

(g) To report persistent supplier performance issues to the procurement department.

(h) To reduce contract spending by utilizing only approved suppliers, and to provide monthly reporting on progress in achieving contract compliance.

(i) To work with procurement team to gain procurement transaction efficiencies and improve controls.

4. THE APPROVAL PROCESS

In addition to understanding the roles surrounding the procurement at Manteecorp (Pty) Ltd, it is important for everyone involved to understand the approval process for supplier selection, commitment, and payments. The Manteecorp (Pty) Ltd authorities for the procurement process are as follows:

(a) Only the Executive Chairman and or the Chief Executive Officer or their designated, can make a commitment to supplier or execute a contract.

(b) Manteecorp (Pty) Ltd does not authorize oral commitments to suppliers unless those commitments are approved by the Executive Chairman and or Chief Executive Officer. Department ordering is authorizing the appropriate Department Head and his or her designates.

(c) Ordering must be authorized in accordance with company guidelines for the annual approvals, as defined in the corporate schedule of authorities with the company.

(d) Cash payments to suppliers can only be made through the accounts payable at the finance department.

5. OUR PROCUREMENT ETHICS

Manteecorp (Pty) Ltd expects all internal and external participants in the procurement process to observe the highest standards of ethical conduct. We expect business to be conducted in accordance with the Manteecorp (Pty) Ltd code of ethics (presented in separate document) and with our company procurement ethics as stated below:

We expect all Manteecorp (Pty) Ltd employees involved in the procurement process to maintain the highest level of integrity and objectivity in the decision making process; therefore, we discourage employees and suppliers from doing anything to compromise or appear to compromise objectivity. Below are guidelines for maintaining objectivity.

5.1. We do not allow the following:

(a) Acceptance by any employee of any cash or cash equivalent (such as loans, gift certificate or vouchers, stock or shares, etc) from a supplier or anyone affiliated with a supplier.

(b) Acceptance of any gift as part of an agreement to do anything in return for a gift.

(c) Investment or business dealings between an employee and a supplier which could influence an employee to make decisions resulting in personal enrichment or financial advantage for the employee or close relatives and friends, unless approved in writing by the Chief Executive Officer. Customary commercial relationships available to the public or to all employees (such as banking, credit card, or stock brokerage accounts) are not considered incidents of personal enrichment.

(d) Acceptance of any gift having a value which would create a perception of impropriety or which would compromise the employee’s duty of loyalty to Manteecorp (Pty) Ltd. All questions regarding the appropriateness of any supplier gift should be directed to the Chief Executive Officer for approval assessment.

(e) Any activity that will create an actual conflict, or even the appearance of conflict in decision making between the personal interests of the employee and the best interest of the company.

We allow the following (except during sourcing activities with the supplier involved):

(f) Customary small gifts, such as promotional items, as long as the market value of the gift, individually or in the aggregate, is not such as to create a perception of impropriety or affect the employee’s duty of loyalty to Manteecorp (Pty) Ltd. All questions regarding the appropriateness of any supplier gift should be directed to the Chief Executive Officer for approval assessment.

(g) Occasional supplier sponsored business meal or outings that provide team building or business development opportunities, provided that the expense is reasonable and not more than employees could have justified had they incurred the expense directly. All their meals or outings must be specifically approved by the Chief Executive Officer.

(h) Solicitation of promotional items only for giveaway or raffle at company sponsored charitable or employee events.

5.2. Compliance procedures
Suppliers are responsible for their own employee’s compliance with the Manteecorp (Pty) Ltd code of ethics and procurement ethics. Questions of interpretation should be directed to the supplier’s Manteecorp (Pty) Ltd commodity contact. Manteecorp (Pty) Ltd employees are responsible for their own compliance with the Manteecorp (Pty) Ltd code of ethics and procurement ethics and should be directed to the Chief Executive Officer. Reports of suspected violations and disclosure of any material transaction or relationship that reasonably could be expected to give rise to the conflict of interest should be directed to the Chief Executive Officer.

We do not allow retaliation against those who, in good faith, report misconduct by suppliers or employees. Suppliers and employees are expected to cooperate in internal investigations of violations of this code. Suppliers who violate our ethics standards will be barred from doing business with Manteecorp (Pty) Ltd. Employees who violate our ethics standards will be subject to disciplinary actions, which may include termination of employment.

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