Blocking a Supplier at Sempra Infrastructure (SI)

At Sempra Infrastructure (SI), maintaining high standards of quality, regulatory compliance, and ethics in operations is essential. As part of these standards, SI has clear policies for blocking suppliers who fail to meet established requirements or have significant performance issues. This article explains how a supplier is blocked and the reasons that may lead to this decision.

Reasons for Blocking a Supplier

1. Contractual Non-Compliance:

   • • Failure to deliver products or services according to agreed terms.
     • Failure to meet contractually agreed deadlines.

2. Quality Issues:

   • • Supplying defective products or substandard services.
     • Repeatedly failing to meet SI's quality standards.

3. Financial Problems:

   • • Insolvency or bankruptcy situations.
     • Recurring issues or delays in payments to subcontractors.

4. Regulatory Non-Compliance:

   • • Failure to comply with local, national, or international regulations.
     • Violations of safety, health, and environmental policies.

5. Inappropriate Ethical Conduct:

   • • Dishonest or fraudulent business practices.
     • Undeclared conflicts of interest.

6. Safety Issues:

   • • Significant risks to the safety of SI operations.
     • Serious safety incidents involving the supplier.

Procedure for Blocking a Supplier

1. Problem Identification

• • Problem Detection: Supplier issues or non-compliance can be identified through audits, internal or external complaints, or performance reports.

2. Case Evaluation

• • Evidence Collection: Documentation and evidence supporting the need to block the supplier are collected.
  • Internal Evaluation: The Master Data Management (MDM) team and other relevant departments (e.g., procurement, legal) review the case.

3. Supplier Notification

• • Formal Communication: The supplier is officially notified of the identified issues and the intent to proceed with blocking.
  • Opportunity to Respond: The supplier is given the chance to respond and correct the issues, if applicable.

4. Blocking Decision

• • Final Review: A final evaluation of the situation is conducted, and a decision is made to proceed with the blocking if the supplier has not resolved the issues.
  • Internal Approval: Necessary approvals are obtained from the supply chain management and other relevant departments.

5. Blocking Implementation

• • System Update: The blocking is recorded in SI's supplier management system.
  • Internal Communication: Relevant internal teams are notified of the supplier's blocking.

Workflow

1. Start: Identification of issues with the supplier.
2. Case Evaluation: Collection and review of evidence.
3. Supplier Notification: Formal communication and opportunity to respond.
4. Blocking Decision: Final evaluation and internal approval.
5. Blocking Implementation: System update and internal communication.

Important Considerations

• • Complete Documentation: Ensure all documentation related to the blocking is complete and accurate.
  • Transparency and Fairness: Maintain a transparent and fair process, giving the supplier the opportunity to rectify issues before proceeding with the blocking.
  • Periodic Review: Regularly review blocked suppliers to assess if conditions have changed and if their status can be reconsidered.

Blocking a supplier at SI is a crucial process to maintain high standards of quality, safety, and regulatory compliance. By following established procedures and adequately documenting each step, users can ensure that the blocking is carried out fairly and effectively, protecting SI's interests and integrity.

Any questions regarding the process or documents, please let us know at [e-mail] and we will guide you