Critical suppliers are suppliers indispensable to ThaiBev’s supply chain and business continuity. ThaiBev treats critical suppliers as strategic business partners with whom ThaiBev works closely to ensure that all aspects of supply chain risks are being monitored and mitigated. Critical suppliers also play significant role in improving overall supply chain transparency by co-identifying risks beyond ThaiBev’s tier 1 suppliers.
ThaiBev defines its critical suppliers considering both commercial and sustainability factors. The most significant factors which are supplier’s sustainability maturity level and business goal alignment with ThaiBev Group’s vision are given the highest weightage. Suppliers are deemed critical when their total criticality score are equal to or higher than 60.
Business Goal Alignment
Critical Material Supplier
Critical tier 1 suppliers are small in number but contribute to high amount of annual procurement spend. All of them supply direct materials which are component of the products that contribute largely to the company’s revenue.
CRITICAL TIER 1 SUPPLIERS
PROCUREMENT SPEND CONTRIBUTION
ThaiBev performs detailed analysis on critical tier 1 suppliers to define suitable sourcing strategy and risk mitigation plan which includes classification by product category and operating locations.
Non-tier 1 suppliers who supply goods and services to ThaiBev’s tier 1 suppliers are also rated in order to identify Critical Non-tier 1 Suppliers. ThaiBev works closely with its tier 1 suppliers to identify Critical Non-tier 1 Suppliers and assess their sustainability risks to improve the assessment quality and gain more insights to risks in the supply chain.
In 2020, ThaiBev includes the requirement for ThaiBev Business Partner Award Program 2020 participants to identify their own critical suppliers and to implement their supplier code of conduct to these suppliers as well as to have formalized processes to evaluate them.
Participants are able to identify their critical suppliers
Participants have a formalized process to assess their critical suppliers
Participants have implemented supplier code of conduct to critical suppliers