This page states Azari Holdings’ public policy position. Applicable law, contracts, regulatory requirements and more specific subsidiary procedures may impose additional or stricter requirements.
Define the need
Before approaching suppliers, the business should be clear about the problem, scope, required outcome, budget, timing and material constraints. Poorly defined procurement creates avoidable cost and makes fair comparison difficult.
Specifications should not be written to favour a supplier without a legitimate reason.
Supplier selection
Selection criteria may include capability, price, quality, delivery, financial resilience, safety, security, legal status, responsible-business factors and fit with the operating requirement.
The weighting should reflect the purchase rather than applying one scorecard to every category.
Competition and fairness
Where competition is appropriate, suppliers should receive enough consistent information to prepare a meaningful response. Conflicts, gifts or undisclosed relationships must not distort the decision.
Single-source procurement can be justified where there is a real reason, but the rationale and approval should be appropriate to the value and risk.
Due diligence
Higher-risk providers may require verification of ownership, licences, insurance, references, security, sanctions or adverse information, labour practices or other matters relevant to the scope.
Diligence should focus on information that can change the decision, not become a ritual collection of documents.
Contracting and oversight
Contracts should describe the service, responsibilities, price, change process, confidentiality, security, relevant standards, remedies and exit position with enough clarity for the relationship to be managed.
Critical suppliers should receive proportionate performance and risk monitoring after appointment.
Lifecycle and responsible value
Purchase price is not always total cost. Maintenance, energy, consumables, durability, waste, support and replacement can affect the value of an asset or service over time.
Responsible procurement therefore looks for credible whole-life value where that consideration is material to the decision.