ThaiBev Sustainability

Supply Chain Management	Sustainable Supply Chain Management Governance	Procurement Landscape
Supplier Screening	Supplier Assessment	Capacity Building Program in Supply Chain Management

ThaiBev integrates sustainability in all aspects of its procurement process from supplier screening, supplier qualification, bidding, and supplier performance evaluation. Additionally, ThaiBev has formalized process to identify and review its critical suppliers annually in order to develop supplier relationship management and supplier engagement plan to collaboratively manage risks in the supply chain.

Procurement

billon baht

Procurement Spend

Active Suppliers

	Direct Materials are merchandise that are product components or used directly in the production process. They are not diverse but their procurement spend is high. They are categorized into packaging, commodities and chemicals.
	Indirect Materials are other merchandise not under Direct Materials which ensure business continuity. Procurement spend is not high, but covers a wide range of merchandise such as machinery, spare parts and consumables, etc.
	Active Suppliers are suppliers with more than one business transactions in 2021 with minimum spend over 100,000 baht. This excludes one-time suppliers and inter-related company which ThaiBev holds more than 50% of share.

ThaiBev analyses its procurement spend and suppliers to effectively prioritize commodities and suppliers as well as defining sourcing strategy for each item.

Most of ThaiBev procurement activities are based on online platform meaning that all of the data are maintained and updated systematically on real-time basis, ensuring that any procurement decisions made are based on accurate and up-to-dated information.

SPEND DISTRIBUTION

Direct Materials

Indirect Materials

Packaging
51.5%

Agricultural Commodity
27.5%

Spare Parts
3.1%

Construction
3.9%

Petrochemical
3.6%

Chemical
3.0%

Office & Factory Supply
2.0%

Machinery
1.0%

Marketing Material
1.9%

IT & OA Equipment
1.0%

Material Handling
1.4%

Service
0.1%

ThaiBev believes that a stable national economy begins with comprehensive income distribution to local communities so that they achieve self-reliance. Therefore the Company consequently privileges suppliers operating in the vicinity of its factories.

Not only does this practice contribute to local job creation and add value to raw materials in each locale, it also minimizes transportation-related pollution.


Read More Information about SUPPLY CHAIN MANAGEMENT in Sustainability Report 2023