Rotana Corporate Sustainability Report 2017

83 SUPPLIERS SATISFACTION SURVEY In order to further improve our partnerships with our suppliers and develop our internal and external processes in the supply chain network, we have developed and launched a satisfaction survey to measure our suppliers’ satisfaction level in doing business with and communicating with Rotana. The results of the survey will help us to improve our procurement department operations, such as by speeding up purchase order issuance and delivering the results of acceptance inspections. Survey results will be shared in our subsequent Sustainability Report. SUPPLIER ASSESSMENT In order to ensure the highest safety and quality of food and beverage products, a supplier qualification programme was implemented in 2008. The pre-qualification and physical assessment of the suppliers is carried out in line with the guidelines provided by the local Food Control Authority. Rotana’s preference is to have HACCP/food safety certified suppliers or suppliers approved based on their internal quality assurance programme. We have a programme to visit and audit all our food and beverage (F&B) suppliers to assess their environmental sustainability against a set of criteria, the results of which would be considered when making decisions on preferred suppliers to be used. Following the launch of the Rotana Responsible Procurement Code in 2017, Rotana will start surveying its major suppliers via a self-assessment questionnaire which assesses their environmental, labour, social and human rights practices as well as their compliance with the code. Unit 2011 2012 2013 2014 2015 2016 2017 Number of F&B suppliers audits # 22 40 73 74 66 120 104 Average achieved audit score % 74 71 72 70 71 72 75 Number of rejected F&B suppliers (scored < 60%) % 0 2 2 10 6 6 6 Unit 2012 2013 2014 2015 2016 2017 Payments to locally registered suppliers/ contractors USD/ Million 183.4 198 206 218 237 283.12 We contribute to the growth of local businesses in the regions where we operate. Over the past few years, we have become more aware of the environmental and social impact of the products that we select and use from our suppliers. We are also more conscious about making a commitment to developing local markets in the countries in which we operate, through collaboration with local suppliers and contractors and through the purchase of locally produced supplies. We support local businesses and we mainly deal with locally registered suppliers in the base country. However, due to circumstantial exceptions, approximately 10% of our suppliers do not have a local presence and therefore goods are imported directly. • 42% of products governed by corporate agreements or corporate price understanding are manufactured or packaged locally in the UAE. • USD 520 million was paid in the last 2 years to our suppliers and contactors in the countries where we operate, contributing to boosting that country’s local economy. Among the supplies where we have shifted to locally produced products are dairy products, fruits and vegetables, fish, eggs, and collateral printing services, rooms’ amenities, mattresses, and bottled water. These changes have mostly occurred in the GCC countries in which we operate. Local supply