Sustainable Procurement and Vendor Management

The company has established operational procedures for the procurement system aimed at serving as a guideline for effective and efficient procurement management. This is to prevent risks and minimize the chance of errors during operations. The importance of both new and existing vendors is recognized, with evaluations conducted on their qualifications, including risk factors and ESG aspects. Additionally, both vendors and employees are developed to enhance their understanding of ESG, enabling them to create mutual benefits for both parties and the organization.

Vendor Selection Process for New and Existing Vendors

For new vendor selection and registration on the Approved Vendor List (AVL), the following process is carried out:
The procurement officer sends the Vendor Registration Application Form to the new vendor.
The procurement officer reviews the qualifications of the new vendor based on the supporting documents attached to the Vendor Registration Application Form. This review is subject to the discretion of the procurement manager, who may request additional information from each vendor depending on the project or procurement budget. For first-time purchases with an order value not exceeding 10,000 THB, vendors may submit documents for procurement to register on their behalf, instead of filling out the application form.
The procurement department selects new vendors using established selection criteria before proceeding with procurement.You can study the criteria for selecting new and existing vendors here >> Download

The Purchasing Department collects and summarizes the vendor evaluation results.

Vendors who pass the evaluation criteria will be registered on the Approved Vendor List (AVL).
Vendors who do not pass the evaluation criteria will be notified by the Purchasing Department as appropriate, and the department will seek new vendors who meet the company’s standards.

Code of Conduct for Vendors

The Code of Conduct for Vendors refers to the guidelines or principles established by the company to build good relationships and shared ethics with vendors and business partners. The purpose is to promote transparency, fairness, and clear ethical standards in business dealings to achieve sustainable growth together.

Please read and understand the content of the Code of Conduct for Vendors here > Download

On-site ESG Audit at Vendor Premises

The company has established criteria for visiting and verifying sustainability practices at vendor sites (On-Site ESG Audit) to ensure that the company’s procurement is conducted responsibly with regard to environmental, social, and governance (ESG) factors as follows:

Scope of Vendors Covered by These Criteria

Critical Tier 1 vendors
Critical Non-Tier 1 vendors assessed by the company as having risk
Vendors with a history of ESG issues
Vendors who have received complaints from customers related to behaviors inconsistent with ESG principles

Frequency of On-site Audits

At least once a year for vendors classified as high risk
Every 2 years for Critical Tier 1 vendors with large contracts but no history of risk
Immediate re-audit if serious deficiencies were found in the previous assessment

Number of Vendors to be Audited On-site

Year 2025: 2 vendors
Year 2026: 3 vendors
Year 2027: 4 vendors

Engagement to Support and Raise Awareness of Sustainable Business Practices Among Vendors

Policy on Payment Terms for Vendors

The company recognizes its role and responsibility in promoting sustainability throughout the supply chain by adhering to ESG (Environmental, Social, Governance) principles in managing vendor relationships, particularly regarding payment terms, which are crucial to the financial stability of all suppliers.

Therefore, the company has established a policy on fair, transparent, and ethical payment terms aligned with sustainable business practices as follows:

Payment terms follow international standards, generally making payment within 90 days from receipt of complete invoices and supporting documents.
Payment term agreements must be clearly stated in contracts or purchase agreements for transparency and auditability.
In cases where vendors face urgent financial constraints or are strategically important, the company may consider expedited payments on a case-by-case basis, subject to approval by the Purchasing Department and management according to the defined hierarchy.
The company will communicate this policy clearly to vendors and regularly review the policy to ensure compliance with applicable laws, regulations, and international ESG practices.

The company has also established procedures for invoice receipt and billing as follows: Download

Actual Average Payment Period to Vendors: 40 days

Promotion and Support for Vendor Sustainability Development

The company focuses on operational practices that enhance vendor capabilities through the following vendor development approaches:

Business Planning with Vendors: Collaborative work between the company and vendors to develop business operations, whether through new projects or various forms of partnerships, aimed at simultaneously elevating the sustainability performance of both the company and its vendors.
ESG Assessment of Vendors: The Purchasing Department conducts ESG evaluations to review vendor performance in accordance with the company’s requirements.
Building Long-term Relationships with Vendors: The company fosters long-term positive relationships with vendors through environmentally friendly purchasing processes, such as procuring Green Paper A4 paper.

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