Suppliers Management
Suppliers or business partners are considered stakeholders who play an important role in driving the organization's business continuity. Consequently, the company has implemented transparent, fair, and verifiable procurement guidelines. These guidelines are integral to the selection criteria for business partners, encompassing considerations such as business ethics. The company has also established a process for monitoring and evaluating suppliers to preemptively address and mitigate risks that could impact the quality of service, image, and operations, whether directly or indirectly. Moreover, the company fosters an environment encouraging partners to maximize their potential, cultivating strong and enduring business relationships for long-term success.
100% of Critical Tier 1 suppliers assessed risks according to ESG principles.
The average payment time to suppliers is 25 days,
aligning with the company's 30-day guideline.
Code of Conduct for Suppliers
Business Ethics
- Conduct business by following the law with transparency and accountability.
- Treat stakeholders fairly.
- Maintain the privacy of stakeholders.
- Comply with intellectual property laws.
- Information is disclosed in cases that may give rise to conflicts of interest.
- Encourage suppliers to make responsible purchases.
- Inspections are conducted upon discovery of mistakes related to supplier.
Human Rights and Labors
- Respect differences and treat workers equally without discrimination.
- Do not accept the benefits of forced labor and oppression of labor in any form.
- Prohibiting the use of child labor
- Appropriate and fair wages and compensation for employees and workers.
- Not hiring illegal workers.
Occupational health and safety
- Comply with laws and occupational health and safety standards.
- Providing a safe working environment and equipment according to occupational health and safety principles.
- Do not neglect actions in the workplace that may cause harm to employees.
- There are preventive, corrective and remedial guidelines for occupational health and safety risks.
Community and Environmental
- Complying with national and local environmental regulations while conducting business operations.
- Assessing the community and environmental impact of business operations.
- Encouraging suppliers to adopt socially and environmentally friendly products, services, or processes.
- Promoting supplier certification for sustainability standards relevant to their business processes.
Suppliers risk management
Suppliers Selection
The company follows systematic guidelines for screening suppliers. Criteria for selecting business partners include:
- Price and quality of products or services
- After-sales service and warranty
- Business verification with no history of corruption within the organization
- Performance on corporate social and environmental governance (ESG)
Suppliers Priolitization
Company has grouped suppliers into 2 categories:
- Critical Tier 1 suppliers based on the top 20 orders.
- Critical Non-Tier 1 suppliers which are the suppliers other than Critical Tier 1 In 2023, the company has a total of 155 suppliers who are Critical Tier 1 and Critical Non-Tier 1 suppliers accounting for 12.9 percent and 87.1 percent, respectively.
Suppliers Risk Assessemnt
The company conducts regular satisfaction and risk assessments across various areas involving suppliers, aiming to promote and support sustainable business operations. Criteria for assessment encompass economic, social, and environmental dimensions:
- Economic dimensions include the number of suppliers in the market, product quality, and delivery speed.
- Social dimensions involve labor compensation and welfare, human rights, workplace safety, and compliance with regulations.
- Environmental dimensions focus on waste management and greenhouse gas emissions reduction.
In 2023, a risk assessment of Critical Tier 1revealed no issues with our suppliers.
Sustainable joint development
The company facilitates suppliers to share their opinions and suggestions, Including organizing projects and activities to enhance business operations and foster sustainable development. In 2023, the company invited current and new suppliers to join the Private Sector Action Coalition Against Corruption (CAC) via email. Out of 31 business partners contacted, representing 20 percent, accepted the invitation to become members.
