Suppliers
NOVATEK is committed to building strategic, long-term and mutually beneficial relations with its counterparties through unbiased and fair practices that seek to benefit all parties involved.
Key supplier identification and supplier assessment for risk exposure
NOVATEK’s supplier pool comprises major domestic and international players. Suppliers are categorized by criticality and rating based on an integral evaluation of the results of supplier qualification and collaboration.
Supplier evaluation for risk exposure considers a variety of factors such as geographic location, size, sector, and supplier profile vis-a-vis required product characteristics. Other considerations include supplier status (manufacturer, official representative, procurement company), company size, available resources, and existing capabilities and experience. The Company also identifies critical suppliers.
Aiming to develop a competitive environment, the Company seeks to expand its supplier pool and regularly conducts market research to attract new manufacturers to bidding. Potential suppliers not meeting the respective supplier qualification criteria are given feedback to improve their production processes.
Supplier evaluation system
NOVATEK manages its supply chain in accordance with high ethical standards and expects its suppliers to observe the principles of open and honest business conduct, business ethics and sustainable development; maintain high standards of environmental protection, occupational health and safety; and respect employee rights (including preventing child and forced labor).
In 2020, seeking to build a sustainable supply chain, the Company approved NOVATEK’s Supplier Code of Conduct, defining the Company’s expectations and recommendations regarding supplier compliance with the principles of the UN Global Compact, the International Labor Organization, the Declaration on Fundamental Principles and Rights at Work and applicable environmental, occupational health and industrial safety laws. Before signing a contract, the Company informs its counterparties about this Code and expects them to comply with it. Our contracts also include the OHS requirements for any supplier to comply with.
To make sure counterparty performance meets contractual requirements for time and quality, NOVATEK runs a rigorous qualification process to investigate bidders’ solvency, relevant experience and capabilities, business reputation, required production capacity and human resources, as well as quality assurance systems in place.
Supplier relations
NOVATEK places a strong emphasis on strategic collaboration with its suppliers and building mutually beneficial long-term relationships. The Company holds regular open forums for suppliers and contractors to keep the market current on its capital construction plans and explain key requirements for potential counterparties.
