Suppliers

Served by a huge chain of suppliers, Ziraat Bank procures a volume of products and services ranging from cleaning materials to training and advertising from different companies.

G4-DMA, G4-12, G4-EC9, G4-EN32, G4-EN33, G4-LA14, G4-LA15, G4-HR4, G4-HR5, G4-HR6, G4-HR10, G4-HR11, G4-SO9, G4-SO10

As the center of one of Turkey’s geographically most extensive service networks, Ziraat Bank is also served by a huge chain of suppliers as well.

Just for the ordinary conduct of the everyday operations of its branch and headquarters units Ziraat Bank must procure, from a huge number of companies, organizations, and individuals, a volume of products and services ranging from office supplies to cleaning materials, from food and beverage services to employee transportation, and from maintenance & repairs to training and advertising. Likewise for the conduct of its core business activity, banking, it must also procure an extensive lineup of critical and essential products and services ranging from IT services to payment-card printing and from premises security to legal and valuation services.

Insofar as is possible, Ziraat Bank procures the everyday materials and services -mainly cleaning supplies, food and beverages, and transportation services- that its branches need from local suppliers.

In 2014, Ziraat Bank paid out about TL 267 million to suppliers located all over the country. Summarized details of these procurements, suppliers, and payments are given in the chart below. During the reporting period, the majority of Ziraat Bank’s direct procurements were made from suppliers based in Turkey.

Breakdown of Ziraat Bank’s procurements, suppliers, and payments in 2014

Ziraat Bank’s approach to supply chain management

In the management of its supply chain, Ziraat Bank engages in a statutorily-mandated tendering process that is scrupulous, cost-competitive, and transparent. When selecting suppliers from which to procure goods and services, simultaneous consideration is given to several interacting parameters.

Before purchasing products or services from an existing supplier and in order to identify potential suppliers from which procurements might be made in the future, attention is given to the following issues, the determination of which involves a visit to the supplier’s business premises:

• Previous performance if any
• Technological capabilities
• Financial standing (based on turnover, tax-assessment base, etc)
• Management profile
• Employee qualification and training levels
• Nature/location/area of business
• Reliability
• Market position
• Machinery & equipment park
• Environmental policies and practices
• References
• Delivery capabilities
• Evidence of service quality and/or quality management competencies (ISO certification etc).

Ziraat Bank identifies any environmental and/or social risks inherent in its goods and services procurements and stipulates these in its technical specifications. Examples of the Bank’s adherence to this practice are to be seen in the requirement that cleaning service provider employees’ garments must not contain azo dyes or other carcinogens, that thermal paper be used for the printing of ATM and POS receipts, and that IT equipment be rated as energy-efficient.

TL 267 million
Ziraat Bank paid out about TL 267 million to its main suppliers.

When selecting suppliers, Ziraat Bank gives attention to their compliance with universally accepted criteria and laws pertaining respect to human rights.

Full compliance with laws and regulations in all aspects of supply chain management

Ziraat Bank seeks to be in full compliance with the requirements of laws and regulations in all aspects of its supply chain management and such compliance is an integral part of all of the contracts that the Bank enters into with its suppliers.

When selecting suppliers, Ziraat Bank gives attention not only to their compliance with laws and regulations pertaining to human rights and to workplace and employee health and safety standards but also to their attitudes towards the prevention of compulsory labor and exploitation, of child labor, of discrimination, and of similar abuses. If the Bank uncovers any evidence of any violations of such universally accepted criteria, it severs its contractual relationship with the supplier and may even impose sanctions such as banning the suppliers from bidding in future tenders.

During the reporting period, Ziraat Bank was not knowingly working with any supplier whose activities were subject to investigation for reasons involving human rights or environmental issues.

In addition to being governed by contractual law in general, Ziraat Bank’s relations with its suppliers are subject to the particular rules set out in “Regulation Concerning the Outsourcing of Support Services by Banks and the Authorization of Organizations Providing Such Services” published by the Banking Regulation and Supervision Agency. Ziraat Bank periodically reviews its suppliers’ performance to be sure that they are in compliance with the requirements of this regulation.

A detailed list of suppliers subject to this regulation is given on page 74 of Ziraat Bank’s 2014 annual report.

In the period ahead, Ziraat Bank will be giving attention to making its suppliers increasingly more aware of the environmental and social aspects and ramifications of its sustainability policy and to expanding the scope of that policy’s applicability.