ThaiBev Sustainability

SUSTAINABILITY

Home / Supply Chain

2020

POLICIES & STRATEGY

ThaiBev’s procurement operation is governed by sustainable sourcing policies and supply chain management strategy. It focuses on cost effectiveness and business continuity management with considerations on sustainability risk management and collaboration with business partners.

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

SUSTAINABLE PROCUREMENT POLICIES

Sustainable sourcing policies outline ThaiBev’s commitment and expectations for its procurement personnel and business partners. They are the fundamental principles which ThaiBev expects its employees and business partners to adhere to.

100%

of ThaiBev’s procurement personnel and business partners comply with
ThaiBev’s sustainable procurement policy

ISSUES COVERED

FOR OUR BUYERS Code of Ethics for Procurement Practitioners

	Supplier relationship management
	Conflict of interest
	Business gift
	Negotiation practice

FOR OUR SUPPLIERS Supplier Code of Practice

	Business ethic
	Environmental management
	Human right
	Occupational health & safety

Read the Supplier Code of Practice here

IMPLEMENTATION

FOR OUR BUYERS Code of Ethics for Procurement Practitioners

	Interview
	Sign contract and consent to the Code
	Successfully recruited

FOR OUR SUPPLIERS Supplier Code of Practice

	Read and accept the Code
	Complete the ESG survey for suppliers
	Sign contract with ESG contract clause included
	Audited on-site

SUPPLY CHAIN MANAGEMENT STRATEGY

ThaiBev’s supply chain management strategy is developed in line with ThaiBev Vision 2020 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

Enhance digital capability to improve sustainability compliance and gain insights to supplier’s sustainability risks

Sustainability Objectives

Compliance with Sustainable Sourcing Policies
Assess supplier risks and track supplier performance via online supplier portal: Supplier Life Cycle Management (SLCM)

Supply Chain Transparency
Fully launch CROSS Procurement in 2020 with the modules such as CROSS Source, CROSS Contract, CROSS Buy, and CROSS SRM with clearly defined process flow and traceability

Supplier Capability Development and Collaboration
Require Business Partner Award participants to identify their own critical suppliers and have formalized process to assess their risks

SYNERGY

Foster for more collaboration from both internal and external stakeholders for mutual growth

Sustainability Objectives

Supplier Capability Development & Collaboration
Recognize business partners with outstanding performance through Business Partner Award Program. Collaborate with TSCN co-founders and strategic partners to manage business continuity risk and implement preventive measures during COVID-19

Sustainable Agriculture
Work with strategic business partners to obtain a third-party certification for key agricultural commodities and support local farmers to adopt sustainable agricultural practices

Supply Chain Transparency
On-board business partners to CROSS Procurement to improve their digital capability

INTEGRATED RISK MANAGEMENT

Consider wide array of risks beyond financial aspects from the screening of new suppliers to supplier performance evaluation

Sustainability Objectives

Compliance with Sustainable Sourcing Policies
Monitor supplier compliance with Supplier Code of Practice via SLCM

Supplier Capability Development and Collaboration
Require Business Partner Award participants to implement their own supplier code of conduct with the primary focus on their critical suppliers

Sustainable Agriculture
Set the quantitative target to achieve 100% of responsibly sourced key agricultural raw materials

CENTRALIZED MANAGEMENT

Strive towards process excellence for efficiency, compliance, and transparency

Sustainability Objectives

Compliance with Sustainable Sourcing Policies
Improve corporate governance, transparency, and traceability through centralized online supplier portal SLCM and CROSS Procurement

Supply Chain Transparency
Connects SLCM with CROSS Procurement to integrate procurement data seamlessly into consolidated online database

STANDARDIZATION

Standardize process and professionalize human capital to support growth and business expansion

Sustainability Objectives

Supplier Capability Development
Build supplier’s digital capability through SLCM as part of global procurement platform

Sustainable Agriculture
Apply both international and local standards to the sourcing of agricultural commodities

Supply Chain Transparency
Digitalize and automate procurement processes through multiple online platforms