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Supply Chain Policies & Strategies

Supply Chain
Policies & Strategies

Supply Chain
Risk Management
In ensuring that all products and services are sourced using standardized and environmentally and socially responsible procurement processes throughout the value chain, ThaiBev enforces sustainable sourcing policies and upholds the highest procurement standards, while pursuing high-quality service in delivery, in addition to supplier assessment processes and supplier engagement activities. ThaiBev has developed strategies and systems to manage its supply chain and ensure business continuity, and to avoid negative economic, social and environmental impacts.
SUPPLY CHAIN MANAGEMENT FRAMEWORK
SUSTAINABLE PROCUREMENT POLICY AND STRATEGY
PROCUREMENT ANALYTICS
TRANSPARENCY AND DISCLOSURE

01 Identify Risks
  • Sustainable procurement policy compliance
  • Preliminary screening of suppliers using ESG criteria
  • Material and supplier criticality assessment

02 Manage Risks
  • On-site and proxy audit
  • ESG contractual clause
  • Recognition and capacity building for suppliers
  • Stakeholder engagement

03 Monitor Risks
  • Price volatility and supply continuity
  • Annual ESG performance review
  • Corrective action requests
  • Supplier classification

ThaiBev’s Sustainable Sourcing
Policy and Guidelines for Suppliers
ESG Policies & Guidelines Supplier Code of Practice Environmental Guideline GMO Guideline Sustainable Agriculture Guideline Packaging Guideline Relevant Key Sustainability Issues
Direct Material
Packaging
   
  • Climate Strategy
  • Innovation
  • Sustainable Supply Chain
  • Waste, Packaging, and the Circular Economy
Commodity
 
  • Climate Strategy
  • Community Development and Partnerships
  • Human Rights
  • Sustainable Supply Chain
  • Water Stewardship
Chemical
   
  • Climate Strategy
  • Innovation
  • Sustainable Supply Chain
Indirect Material
Machinery & Spare Parts
     
  • Energy Management
  • Human Rights
  • Innovation
  • Sustainable Supply Chain
Construction
     
  • Employees Wellbeing
  • Human Rights
  • Sustainable Supply Chain
Marketing Materials
     
  • Employees Wellbeing
  • Human Rights
  • Innovation
  • Sustainable Supply Chain
Material Handling
     
  • Human Rights
  • Sustainable Supply Chain
Consumables
     
  • Human Rights
  • Sustainable Supply Chain
IT & OA Equipment
     
  • Climate Strategy
  • Data Security and Privacy
  • Human Rights
  • Sustainable Supply Chain
Services
     
  • Human Rights
  • Sustainable Supply Chain
Mr. Udomsak Rungcharusup, Managing Director of  Pan International (Thailand) Co., Ltd., received ISO 20400 certificate for sustainable procurement from Mr. Jongrak Rojpalasatean, EVP of Management System Certification Institute (Thailand) (MASCI) operating under the umbrella of the Foundation for Industrial Development (FID).
ISO 20400
Sustainable Procurement Guidance
Pan International (Thailand) Co., Ltd., a corporate purchasing and trading company for ThaiBev Group, has received ISO 20400 Sustainable Procurement certificate, marking ThaiBev Group as the first beverage company in Thailand to receive such certification. To be qualified for this certificate, a company’s process of procuring products and services from its critical suppliers and strategic suppliers with high procurement volume and/or supplying key materials has been evaluated.

OVERALL PROGRESS IN
SUSTAINABLE SUPPLY CHAIN MANAGEMENT
 Target achieved     
In procress

Sustainability Commitments 2019 2020 2021 Target Target Year
Compliant Supplier
Number of active suppliers complying with ThaiBev Supplier Code of Practice
85%
100%
100%		 100% 2020
Local Procurement
Number of suppliers whom ThaiBev procures goods and services from operating in Thailand
98%
97%
97%		 95% 2021
ESG Risk Assessment
Number of active suppliers undergo sustainability risk assessment
100%
100%
100%		 100% 2021
Critical Supplier Audited
Number of critical tier 1 and non-tier 1 suppliers being assessed on site by third-party or ThaiBev auditors
100%
100%
100%		 100% 2021
Responsible Sourcing
Volume of key agricultural raw materials responsibly sourced i.e. malt and hops, sugar, broken rice, tea leaves, and palm oil.
64%
100%
100%		 100% 2025
Third-party Risk Assessment
Number of active suppliers being assessed and examined on sustainability risks by a third party or using third-party risk database
100%
100%
100%		 100% 2025
Strategic Suppliers Having Supplier Code of Conduct Implemented
Number of strategic suppliers having their own supplier code of conduct implemented to their tier 1 suppliers (ThaiBev’s non-tier 1 suppliers)
47%
47%
56%		 100% 2030
SUPPLY CHAIN MANAGEMENT
STRATEGY
ThaiBev’s supply chain management strategy is developed in line with ThaiBev's PASSION 2025 and essential to ThaiBev’s aspiration in thriving as stable and sustainable ASEAN leader in food and beverage industry. The strategy comprises of five pillars: Visibility, Synergy, Integrated Risk Management, Centralized Management, and Standardization

VISIBILITY
Integrate suite of digital system into total supply chain management for real-time visibility, including predictive risk management, procurement spending, profitability, efficiency and traceable ESG impacts in the supply chain.

SYNERGY
Engage with business partners to expand the adoption of sustainable business practices and strengthen Thailand’s business sector through multi-stakeholder collaborations and digital solutions.

INTEGRATED RISK MANAGEMENT
Improve overall business resilience and ensure business continuity by having multiple qualified suppliers in place, particularly those supplying critical materials and key agricultural raw materials, giving priority to local sources and strengthening the capability of domestic suppliers.

CENTRALIZED MANAGEMENT
Harmonize the global procurement policy, operating model and technology to maximize values throughout the supply chain, in both economic and sustainability aspects.

STANDARDIZATION
Integrate leading procurement standards into supply chain management (i.e., ISO 20400 Sustainable Procurement) and develop workers’ capabilities with specialized skill sets and increased sustainability awareness.
SUSTAINABILITY OBJECTIVES
IN SUPPLY CHAIN MANAGEMENT
SUSTAINABLE AGRICULTURE
Relevant Sustainability Commitments
  • 100% of ThaiBev’s key agricultural raw materials sustainably sourced
Collaborate with agricultural commodity business partners to promote the adoption of sustainable agricultural practices among non-tier 1 suppliers, i.e, farmers in order to minimize any environmental impacts in the supply chain and improve farmer livelihood and well-being with performance tracking and reporting

Establish purchasing policy and bidding requirement to only procure key agricultural raw materials with the leading third-party certification / standards to reduce risk exposure to any ESG violation from the upstream supply chain

SYNERGY
INTEGRATED RISK MANAGEMENT
COMPLIANCE WITH SUSTAINABLE SOURCING POLICIES
Relevant Sustainability Commitments
  • 100% of active tier 1 suppliers acknowledge and accept ThaiBev Supplier Code of Practice
  • 56% of strategic tier 1 suppliers have their own supplier code of conduct in place
Set the requirement for all tier 1 suppliers to acknowledge and accept ThaiBev Supplier Code of Practice through online supplier portal (Supplier Life Cycle Management or SLCM) during the supplier registration process

Include the requirement to comply with ThaiBev Supplier Code of Practice in the contractual clause to ensure the compliance after procuring any goods or services

Extend the adoption of sustainability to non-tier 1 suppliers by requiring strategic suppliers to establish and implement their own supplier code of conduct

VISIBILITY
INTEGRATED RISK MANAGEMENT
CENTRALIZED MANAGEMENT
SUPPLY CHAIN TRANSPARENCY & IMPACT MANAGEMENT
Relevant Sustainability Commitments
  • Scope 3 emissions tracked and disclosed using the primary data from strategic suppliers
  • 100% of suppliers undergo sustainability risk assessment via SLCM
Work with strategic suppliers to track and disclose ThaiBev’s scope 3 emissions using the primary data in order to measure and improve the visibility to the environmental impacts in the supply chain

Integrate sustainability factors in all aspects of the procurement processes, including supplier qualification, bidding, and supplier performance evaluation

Align the procurement procedures and processes with ISO 20400 Sustainable Procurement for better traceability in the supply chain

VISIBILITY
INTEGRATED RISK MANAGEMENT
STANDARDIZATION
BUSINESS PARTNER DEVELOPMENT & COLLABORATION
Relevant Sustainability Commitments
  • 100% of ThaiBev’s critical suppliers are audited onsite annually
  • 97% of ThaiBev’s procurement is locally sourced
Identify room for improvements from supplier audit data and on-going supplier monitoring

Promote supplier development, private sector competitiveness, sustainable business practices and innovation, and recognize business partners with outstanding performance through Business Partner Award Program

Strengthen local business sector from cross-industry collaboration via Thailand Supply Chain Network (TSCN)

SYNERGY
INTEGRATED RISK MANAGEMENT

More Information about
Supply Chain Management
in Sustainability Report 2021

ThaiBev's Sustainability

ENVIRONMENTAL

SOCIAL

GOVERNANCE & ECONOMIC


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