ThaiBev Group’s spend analysis is crucial for the supply chain visibility. It helps us to determine the suitable sourcing strategy for each merchandise category and how we manage our suppliers as well as manage risks in the supply chain.
CHALLENGES AND MANAGEMENT STRATEGIES
DIRECT MATERIAL
Merchandise that are product components or used directly in the production process
CHALLENGES
High volatility in commodity
Non-substitutable suppliers
MANAGEMENT STRATEGY
Secure supply
Build strategic and collaborative partnership
Category is not diverse but contributes to high procurement spend
INDIRECT MATERIAL
Other merchandise not under Direct Materials which ensure business continuity
CHALLENGES
High number and variety of suppliers
SME capability and compliance
MANAGEMENT STRATEGY
Supplier rationalization
Leverage procurement volume
Process automation
Procurement spend is not high, but covers a wide range of merchandise