Principle and Policy
BFI Finance’s procedure for the procurement of goods and services renders the procurement processes fast and transparent, in accordance with the principles of GCG and without any conflict of interest. The company upholds the principles of honesty and independence of all parties, whether they are involved directly or indirectly in the procurement of goods and services, as well as their performance, character, and work ethics.
The policy governing BFI Finance’s procurement of goods and services as well as supplier relations encompasses:
- Implementation of Internal Memos and Operational Procedures for the procurement of goods and services.
- Procurement of goods and services is based on the procurement value and level of authority, particularly at the branch offices, to accelerate the procurement process. Procurement of goods and services above a certain amount shall be conducted centrally at the head office.
- Major suppliers of goods and services are required to submit complete legal documents to ensure that the rights and obligations of both the company’s and suppliers’ comply with the existing documents.
- Compliance principle, all procurement activities comply with applicable laws and regulations and the company's internal policies;
- The company’s code of conduct and regulations prohibit employees to accept gifts of any kind from suppliers; and
- The company shall conduct periodic evaluations on all suppliers to ensure that they are able to support the company’s activities.
Procurement System
The company’s procurement processes consist of the following stages:
- Planning: formulating the procurement plan;
- Preparation: Terms of Reference (ToR), pre-qualification requirements, procurement documents, strategy in the selection of goods and services providers;
- Selection of goods and services: announcing or inviting certified vendors that have passed pre-qualification, evaluating and negotiating bids, selecting the project winners, contracting; and
- Utilization and management of the company’s assets.
The system run transparently and competitively, by including prospective goods and services suppliers whose ability and performance satisfy the competence requirements of the company. In addition to procurement, BFI Finance also employs other methods, such as auction, direct appointment, and direct purchase, performed both
conventionally and online.
The above policy and system ensure that the quantity and quality of goods and services procured by the company are in accordance with the requirements, and the goods and services are obtained at the most competitive prices, with timely delivery and excellent after-sales service.
Procurement of goods, both at the head ofce and branches, can be monitored real-time through an integrated system that allows monitoring; by the users themselves, the branches, and the head office; starting from the purchase up to asset maintenance stage.
