Home / Sustainability / 2017 Sustainability Report / Creating and Sharing the Value of Growth for a Sustainable Future Sustainable Sourcing
GRI 204-1 GRI 308-1 GRI 414-1

ThaiBev prizes integrity, accountability, transparency, and fairness, abiding by its Business Codes of Conduct. Corporate governance is one of the key factors that improve organizational efficiency involving the relations between executives, board members, management, staff, and other stakeholders. Corporate governance creates important structures acting as mechanisms to determine business objectives, to determine the methods for achieving those objectives, and to monitor operating results. Consequently, the Company emphasizes principles of good corporate governance and appropriate risk management plans following sustainable development guidelines.

Sustainable sourcing is an essential foundation for a sustainable supply chain as it is the first step in the life cycle of ThaiBev products. This is why the Company takes great care in selecting raw materials, goods, and services used in the manufacturing process. The Company has established a Supplier Code of Practice in order to communicate its expectations of suppliers, such that potential production, environmental, social, and business impact is minimized. A standard for screening suppliers is also established, with strict quality control taking into account environmental and social impact.

To ensure that consumers receive high quality products, ThaiBev has standardized its sourcing process, which evidences environmental and social responsibility throughout the supply chain. In addition, sustainable sourcing contributes to job creation, increases income in local communities, and stimulates the domestic economy.

Procurement Spend from Critical Suppliers Critical suppliers contributed to

of the total procurement spend in 2017
Commercial Risk Management in Sourcing
Risk management is one of the mechanisms that propels sustainable sourcing in an efficient direction. From the selection of raw materials to the performance assessment after purchase from suppliers, risks are assessed on the basis of pricing and available supply of goods and services, as well as suppliers’ capacity in delivering goods and services.

The Company identifies its critical suppliers based on sourcing risk levels and the results are brought to bear on risk mitigation strategies.

Categories of Suppliers
The Company classifies its suppliers by merchandise category into two groups; namely direct materials and indirect materials. The procurement spend on direct materials sourced amounts to 75% of the total procurement spend in 2017.

75% Direct Materials
consists of raw materials, packaging, and fuel. This includes malt, glass bottles, plastic bottles, corrugated cartons, and fuel oils.
25% Indirect Materials
consists of construction, machinery, spare parts, information technology equipment, office and factory consumables, point-of-purchase and point-of-sale products, and services. This includes filling machines, date coding machines, computers, stationery, and personal protective equipment.

Sustainability Risk Management in Sourcing


Of new suppliers are screened using environmental and social criteria
To ensure that suppliers meet the expectations of the Supplier Code of Practice, ThaiBev incorporates the factor of sustainability, encompassing good corporate governance, the environment, and society as part of the sustainable sourcing process.

From screening of suppliers prior to purchase, and performance assessment after purchase to monitoring and improving their performance continuously, sustainable sourcing enhances the efficiency of supply chain management to support corporate growth.

2017 Sustainability