Sustainable Procurement Management
Sustainable Procurement Management
Our close relationship with our business partners allows us to improve the standard and quality of our raw materials through knowledge sharing and activities that expands our notion of sustainable business development and growth

Management approach
Through our sustainable procurement policy, we work closely with our business partners and stakeholders to create awareness and understanding of responsible approach towards sourcing of raw materials and development of internal processes to manage and monitor potential areas that may result in human rights or environmental violations in our supply chain.
Policy : Sustainable Procurement Policy
Stakeholders :
Customers, Communities, Suppliers, and Business Partners
Short-term goals :
- More than 99.5% of raw materials and packaging are according to specifications
- More than 95% of raw materials delivered according to schedule
- Procure 153 million THB of Green Products per year
- At least 63 million THB procured locally
Long-term goals :
- Improve internal processes to increase efficiency of procurement
- Utilize data analytics to better manage procurement processes
2022 Key Performance(s) :
- 97.99% of raw materials and packaging delivered according to schedule
- 100% of raw materials and packaging quality are according to specifications
- Green Products Procured: 129 million THB
- Local Procurement: 74.5 million THB
Local Procurement
In 2022, we made efforts to expand our support for communities near our factory. In addition to promoting local products, we also broadened our concept and approach to community support. This included procuring and utilizing contractors from the surrounding communities of our branch factories in Thailand, amounting to a total of 74.45 million baht. This figure indicates a decrease compared to the previous year, which aligns with the economic and market conditions.
Total Local Procurement (Million Baht)
Green Procurement
We are dedicated to continuously promoting the procurement of environmentally friendly raw materials, products, and services for use in our production processes and operations. However, in 2022, the value of green procurement amounted to only 129 million baht, representing a decrease from the previous year. This decline can be attributed to changes in the government’s policy, specifically the reduced use of Natural Rubber Modified Asphalt Concrete. Consequently, the demand for raw materials used in the production of such products significantly decreased
Total Green Procurement (Million Baht)
Supplier Management
We are committed to the consistent management of our business operations, which encompasses the establishment of policies and guidelines for sustainable procurement. Our goal is to enhance the value of goods and services from producers, service providers, and suppliers, focusing on value improvement from production to delivery, while also championing social responsibility throughout our company group’s value chain
Vendors are categorized based on risk and their capacity to meet our established standards. This includes suppliers exclusively servicing us or those operating in a market with fewer competitors, as well as vendors supplying raw materials or primary packaging crucial to our production processes. Our key suppliers fall into two primary categories:
Primary Key Suppliers (Critical Tier 1 Suppliers): These are direct suppliers listed in our vendor database, providing goods and services to us. We continually evaluate these suppliers based on predetermined criteria, encompassing quality, pricing, delivery performance, labor standards, social responsibility, and environmental considerations. In 2021, this category comprised 43 suppliers, constituting 5% of all vendors.
Critical Non-Tier 1 Suppliers: These vendors supply goods or services to our Primary Key Suppliers (Critical Tier 1 Suppliers). No suppliers met the criteria for this category in the 2021 assessment.”

Sustainable Supplier Selection and Evaluation
Assessment Topics | % of Critical Tier 1 Suppliers (2022) |
---|---|
Delivery Capability | 100% |
ESG Onsite | *0% |
ESG Self Assessment | 10% |
* ESG evaluations cannot be conducted at the vendors' operational sites due to the COVID-19 pandemic. This situation has resulted in vendors not allowing site visits
Developing and Supporting Suppliers

Supply Chain Management During and After the COVID-19 Pandemic
Title | 2020 | 2021 | 2022 |
---|---|---|---|
Average Payment Periods (Days) | 82.81 | 50.63 | 44.01 |
- Financial Support : Assisting the Construction Business Partner. In response to a partner within the construction business group facing financial liquidity challenges, we provided assistance. By introducing and endorsing this partner to the same financial institution as our company’s group, we instilled greater confidence in financial institutions regarding our trading partners. This approach facilitated visibility into the partner’s financial path, leading to risk assessment and reduction. Consequently, our partners were perceived as having reduced risk exposure, leading to favorable lower interest rates. This support resulted in decreased financial costs for our partners. Furthermore, financial institutions benefitted from new client acquisitions, creating a mutually advantageous scenario that decreased risks associated with collaborative operations.
- Operational Efficiency : Streamlining Procurement. Our procurement department effectively managed overall orders for both the asphalt and construction businesses. This encompassed total orders and estimates for the purchasing agency, ensuring a comprehensive view for each project’s requirements throughout the project lifecycle. This transparency allowed partners to plan production, delivery, and other operations efficiently. By providing advanced information, we aided partners in better preparing and executing their processes. This initiative ultimately contributes to enhanced project management and smoother collaborative efforts