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Supply Chain Management Supply Chain Excellence

Green Procurement and Logistics

In addition to supply chain management, GC is focusing on a green procurement policy, which is the procurement of goods and services that have less environmental impact than general goods and services. This policy considers the product life cycle from raw materials sourcing, manufacturing, energy selection and appropriate technology, to packaging, transportation, and product usage (or waste) after end-of-life.

GC has established a procurement framework that gives special consideration to vendors offering environmentally-friendly products, in addition to price, quality, and delivery factors. This will deliver mutual benefits for the company, our partners, and society.

Building Green Network

GC recognizes the importance of creating a green network by exchanging know-how with and developing partners to address environmental, social, and governance issues relating to the company's operations. This encourages a value-added supply chain for all parties that also benefits surrounding communities and the environment. The green network is aligned with supplier relationship management as well as GC's Green Industry Level 5 certification by the Industry Promotion and Development Office in 2015.

GC has been conducting training sessions and conferences with suppliers for four years. We want to continuously develop their capabilities and understanding of the requirements for the sustainability of PTT Group's supply chain management approach under our Operational Excellence Management System (OEMS) project.

This system supports suppliers and sub-contractors to achieve good governance in the areas of safety, environment, and risk management. For example, GC suggests and conducts development plans for suppliers that do not pass the performance evaluation, always trains sub-contractors before they start their work, and conducts an annual supplier conference, among other activities.

Procurement of Green Products

The lack or shortage of raw materials is accounted for one of GC's business risks. In order to have a better management on raw material procurement, GC has worked closely with their suppliers in procurement in emergency situation, through monthly meeting with critical suppliers to identify the short term and long term of procurement plan, factory maintenance plan, the monthly performance, the emergency mitigation plan and the procurement of green products.

Green Logistics Programs - Conduct program to improve the environmental performance of its logistics and its fleet management

GC has collaborated with PTT, main suppliers and other company in PTT group on efficient ocean freight transportation in order to make sure that the companies have complied with safety and environment standards and regulations of sea transportation. This matter is considered to be a proactive action in order to reduce the risks to the operation and to reduce the accidents that might have a major impact to society and environment.