Port Services Supplier Governance Standard

Purpose

The purpose of this standard is to provide guidance of our general requirements to all our Suppliers focusing on Operational and ESG standards in achieving Competition, Value for Money, and Fairness.

Competition: Competition promotes efficiency and effectiveness in all expenditure and contributes to the competitiveness of Suppliers. Promotion of competition includes price, product, and service.

Value for Money: In most procurement activities, there are at least three broad types of benefits, service quality, costs and risks mitigation which need to be considered at the planning stage.

Fairness: All Sub- Agents and Suppliers shall be dealt with equally, with integrity, fairness, courtesy and in a professional manner.

ESG: Every person working for and on behalf of Wilhelmsen Port Services or for Wilhelmsen Port Services’ customer is responsible and authorised to perform work in a safe, secure, and eco-friendly manner in compliance with the supplier code of conduct. All Sub-Agents and Suppliers are an integral part of the Wilhelmsen Port Services business performance,and we expect a standard QHSSE performance of all Sub-Agents and Suppliers in line with Wilhelmsen Port Services ESG requirements.

Selection process

Starting from the RFQ/RFP, the supplier will be evaluated based on their compliance to OFAC, financial status and if there are any known claims.

After that, the supplier will be evaluated from a safety, quality and price competency perspective to ensure that the supplier meets our safety standards, provide quality service and provide value for money.

Once the supplier passes the due diligence check and meets our safety and quality standards, a legal compliance check will be conducted on the supplier to ensure that the supplier meets our legal requirements.

Once all the compliance checks have been completed, the supplier will either be selected or rejected based on the results of the checks.

Risk based Approach

All Suppliers and Sub-Agents are classified in three risk groups based on the service category, OH&S risks, compliance with Port Services Governance standard and spend. Selection, review, onboarding and performance monitoring activities are defined as per the overall risk level.

Performance Review

A periodic review will be conducted on all suppliers and sub-agents and the objective and targets of this review are:
• Operational performance – Compliance with KPIs / SOP, customer satisfaction, order processing, communication, and invoicing accuracy.
• ESG Performance –Control measures of Environment impacts, Safety statistics, customer complaints, investigation / action implementation, operational control, etc
• Business risks – Compliance, OFAC and other external factors that may affect business continuity.
• Review records and verify validity (records collected during selection and onboarding process)

Supplier Requisition and Selection Workflow

This standard is endorsed and approved by the Wilhelmsen Port Services, Head of Business Process & Supplier Compliance on 29th March 2022.