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CAPACITY BUILDING
PROGRAM IN SUPPLY CHAIN MANAGEMENT

Supply Chain
Management

Sustainable Supply Chain
Management Governance

Procurement
Landscape

Supplier
Screening

Supplier
Assessment

Capacity Building
Program
in Supply Chain
Management
ThaiBev implements capacity building program in supply chain management which includes both ThaiBev’s suppliers and buyers. The program focuses on building supplier’s and buyer’s knowledge and awareness on sustainable development. The objective is to ensure that both suppliers and buyers have the knowledge and skills to integrate sustainability into the procurement processes and understand the ESG impacts from upstream to downstream in supply chain.
SUPPLIER DEVELOPMENT PROGRAM
Definition
The implementation of capacity building program in supply chain management for ThaiBev’s suppliers. The development focuses on building supplier knowledge and awareness on sustainable development and to ensure that suppliers have the knowledge and skills to integrate sustainability into the procurement processes and understand the ESG impacts from upstream to downstream in supply chain.
Scope
100% of significant suppliers
Output
Corrective actions from significant suppliers with high ESG risks and development plan for significant suppliers
100%
of suppliers with high risk have corrective action plan
Corrective Action Request
Suppliers that are identified with high risks or have non-compliance issues from the supplier assessment are required to submit correction action plan within the designated timeline. Their corrective action implementation is also monitored and reviewed by ThaiBev auditor. ThaiBev will also provide feedback and support to suppliers during their corrective action implementation where required.
100%
of significant suppliers covered in supplier training and knowledge sharing program
Supplier Training and Knowledge Sharing Program
ThaiBev organizes training and knowledge sharing program for suppliers via Thailand Supply Chain Network (TSCN). The program is organized on a regular basis with the aim to develop supplier capability and increase supplier’s awareness on sustainable development. The program includes both sustainability and business topics.
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100%
of local critical suppliers participating in ThaiBev Business Partner Award
Business Partner Award Program
ThaiBev invites critical suppliers and strategic suppliers to participate in Business Partner Award Program annually to recognize the suppliers with an outstanding performance. The Business Partner Award criteria include quality, commercial, delivery, project development, and sustainability. Sustainability is weighted 20%.
Supplier Training and Knowledge Sharing Program
Climate-related Engagement with Other Partners in the Value Chain
ThaiBev collaborates with Thailand Supply Chain Network (TSCN) co-founders to implement the supplier development program by sharing the know-how and expertise from the leading companies in sustainable development practices via Thailand Sustainability Academy (TSA).

In 2023, the TSA successfully organized the first training classes on the topic of “The Power of One: Taking Action to Reduce GHG Emissions" Strategic suppliers with high GHG emission intensity and contribution are invited to participate in these classes, i.e., packaging and key agricultural commodity suppliers. The objectives of the training is to equip suppliers with the knowledge to identify, measure, and reduce greenhouse gas emissions within their operations. More than 70 attendees from 49 companies have participated.
ESG BENCHMARK FROM SUPPLIER ASSESSMENT
ThaiBev prioritize the enhancement of Environmental, Social, and Governance (ESG) performances throughout the supply chain, and provide access for all active suppliers to ESG benchmark from ESG Program results (Supplier Assessment result). ThaiBev ensure that suppliers are aware about the existing gaps in their ESG practices and are equipped with the necessary knowledge to improve their performance in these areas. This collaborative approach allows ThaiBev to foster transparency, encourage responsible practices, and drive positive change across our supply chain, ultimately contributing to a more sustainable and socially responsible business ecosystem.
Supplier Category Corporate Governance Environmental Management Social Sustainability Supplier Management Audit and Certification Carbon Footprint Reduction and Tracking Water Consumption %Score
1. Agricultural Commodity 100% 88% 85% 92% 67% 58% 100% 95%
2. Chemicals 67% 88% 65% 83% 92% 58% 100% 86%
3. Construction 75% 67% 67% 50% 50% 38% N/A 58%
4. Machinery 63% 67% 100% 50% 100% 63% N/A 70%
5. Material Handling 75% 67% 100% 100% 100% 38% N/A 78%
6. Office & Factory Supply 63% 67% 25% 50% 25% 50% N/A 48%
7. Packaging 100% 100% 100% 100% 100% 83% 100% 98%
8. Petrochemical 100% 75% 85% 75% 83% 58% 60% 89%
MAJOR NON-COMPLIANCES
ThaiBev identifies non-compliance issues founded and sets out mandatory requirements for the assessed suppliers to submit corrective action plan within the designated period if non-compliances are found. ThaiBev monitors the progress of the corrective actions and shall suspend, exclude, and/or terminate any suppliers who fail to resolve major non-compliances within the agreed window of time until further actions are properly taken and satisfy ThaiBev’s requirements.
ZERO
Suppliers terminated IN 2023

Unethical Business Practice

Illegal Activities

Negligence to Health and Safety

Human Right Violation

Non-compliance against Food Safety Standard

Deviation from Product Specification
BUYER DEVELOPMENT PROGRAM
100%
of buyers participating in
the buyer development program IN 2023

Buyer Training
ThaiBev implements buyer training programs which include both commercial and sustainability acumen. Sustainability courses focus mainly on:
  • Sustainable Procurement which follows ISO 20400: 2017 Sustainable Procurement – Guidance
  • ThaiBev Business Code of Conduct which is a mandatory training course with minimum threshold where all employees, including buyers have to pass

On-the-job Training
ThaiBev sets sustainable procurement-related KPIs to ensure the adoption of sustainability in the procurement process. The buyers need to consider ESG impacts in their choices of products and services in addition to commercial and quality factors. The KPI progress is monitored by the management who is responsible for providing recommendation and guidance in order to successfully implement sustainable procurement practice.
Read More Information about
SUPPLY CHAIN MANAGEMENT
in Sustainability Report 2023


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