Supply Chain

Organizational Importance and Commitment

The Company emphasizes building a sustainable collaborative network throughout the supply chain. The management approach focuses on driving business success while simultaneously reducing social and environmental impacts and enhancing stakeholder engagement across all areas.

Opportunities and Impact

Effective supply chain management is a key factor influencing operations, helping to increase profit efficiency and enhance competitiveness, while also creating business opportunities and supporting organizational sustainability. However, poor supply chain management can cause environmental, social, and economic impacts, leading to business disruptions, legal violations, fines, operational losses, and reputational damage. Therefore, careful supply chain planning and management are crucial factors for the organization’s long-term sustainability.

Supporting the SDGs Goals

Goal 9:

Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.

Stakeholders Directly Impacted

Management Guidelines

1. Risk Assessment from Supplier Operations

The Company places importance on effective supply chain management by implementing policies for quality procurement processes, both for central procurement and project-specific procurement. This is achieved through supplier evaluations to ensure that partners have the capability to deliver quality products and services that meet the specified criteria, quantities, timelines, and delivery procedures as defined by the Company. In addition, partners must comply with labor laws, environmental laws, and relevant quality management system standards.

Procedures and Guidelines for Supplier Selection and Evaluation

Preliminary Qualification Screening

Risk Assessment

Submission of Documents for New Supplier Registration

Signing the Suppliers’ Code of Conduct

Vendor and Supplier Registration in the System

Analysis and Prioritization of Business-Critical Suppliers

Supplier Performance Evaluation

The Company analyzes and classifies its trade partners into 5 priority groups as follows:

Suppliers who provide products or services directly to the Company.

Suppliers who provide products or services to the Company’s direct suppliers or to the next tier in the supply chain.

Suppliers with high order volumes, continuous orders, and whose products and services are important to the Company’s business operations or are difficult to substitute with other suppliers.

Manufacturers or service providers critical to the Company’s business operations and difficult to replace by other manufacturers or service providers, who sell to agents that are the Company’s direct suppliers or to the next tier in the supply chain.

Suppliers assessed with a level 4 risk in environmental, social, and governance (ESG) factors, whose operations tend to potentially cause negative impacts on the Company.

Supplier Performance Evaluation