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Supply Chain Management Green Procurement and Logistics

Supplier Relationship Management and Capacity Building

GC places importance on building good relationships and collaborating on capacity development in supply chain management operations through efficient communications with suppliers and contractors. The company also organizes activities related to Integrated Intelligence Supply Chain Management (IISCM) which focus on enabling suppliers and contractors to develop good management in safety, environment and sustainable risk management. For example, conducting pre-task contractor trainings, hosting the Annual Supplier Conference, offering advice, planning capacity development for suppliers who did not pass the assessment, and providing assistance, encouragement and support to maximize operational efficiency.

Supplier Development

GC communicates, trains, and organizes supplier capacity development programs concerning regulations, the company’s business direction, human rights and technical knowledge support to enhance supplier capacity and enable them to conduct business in line with the company’s Sustainability Goals.

Supplier Conference

The main goal of the Annual Supplier Conference is to communicate with suppliers on the company’s vision, action plans, legal regulations, the company’s strategy and business direction, selection process, Approved Vender List (AVL), evaluation, and performance monitoring. It also provides an opportunity for the suppliers and GC to exchange information and opinions to improve and develop a more efficient procurement process.

Training on Decarbonization and Road Map

The objective of this program is to urge suppliers to recognize the importance of reducing emissions, implement effective environmental management and reduce greenhouse gas emissions rate in line with the company’s Net Zero Target. The program also empowers suppliers to set their own goals and action plans by providing close consultation from the company and offering knowledge and technical support through trainings and other technical capacity development programs, such as Greenhouse Gas Accounting, to enable the achievement of established targets.

Furthermore, GC builds relationships with business partners and organizes capacity development trainings in many areas, such as pre-task safety for contractors, using the Ariba Network to view and confirm purchase orders, bidding through RPA (Robotic Process Automation), and relevant international standards, i.e. ISO 9001, ISO 45001, ISO 14001, and ISO 50001. GC also encourage suppliers to join the Collective Action Against Corruption (CAC), etc.

Supplier Collaboration

In terms of supplier collaboration projects, GC has formulated a supply chain management strategy for critical suppliers with PTT. Furthermore, the company has cooperated with PTT Public Company Limited, GC’s major supplier, and other PTT Group companies to manage the shipping system for quality assurance in order to ensure that the vessels meet the industry’s highest guidelines for operation, safety and environment. This proactive approach is part of risk management to avoid or reduce accidents that cause widespread impacts.

Oil Industry Environmental Safety Group Association: IESG

GC has collaborated with PTT as part of the member of Oil Industry Environmental Safety Group Association (IESG), a non-profit organization, which is established by companies in oil industry to emphasize on safety and environmental management in Thailand. As a member, GC would advocate for preventing negative impact on environment and safety aspects in oil industry and provide supports to other members as well as to the government.

GC is also a member of Oil Spill Response Limited (OSRL), which are established to mitigate the international oil spills incidents. The environmental responsibilities of OSRL members have covered more than 160 locations around the world. As part of the organization, GC has prepared and set the oil spills contingency plans according to the international standards.

Relevant Projects

Collaborative Projects for Sustainability

GC has developed projects with suppliers to save energy in transporting waste for disposal by reducing the travelling distance. Furthermore, the company has reduced the thickness of packaging, such as Stretch Hood Film, Steel Drum, to cut down on the use of materials and costs. In terms of technology development, GC has exchanged information and implemented new technologies in the collaborative enhancement of work efficiency as well as shared information on working safely together.

Group Integration Supply Chain Management and Optimization (GISMO) and Petrochemicals and Refining Integrated Synergy Management (PRISM)

GC has collaborated with PTT group to develop Integrated Intelligence Supply Chain Management (IISCM)GC has collaborated with PTT group to develop Integrated Intelligence Supply Chain Management (IISCM).

Group Logistics Management: GLM

GC has worked with Thai Oil Group on Chemical Co-Sales and Swap in order to reduce the small vessel transportation, which can reduce the GHGs emissions from the activity. PTT Phenol has also adjust the packaging size of jumbo bag from 750 kg. to 850 kg, which can reduce the transportation trip and reduce the GHGs emissions for 36.7 Ton of CO2 equivalent and reduce the expenses by 4.9 million baht.GC has worked with Thai Oil Group on Chemical Co-Sales and Swap in order to reduce the small vessel transportation, which can reduce the GHGs emissions from the activity. PTT Phenol has also adjust the packaging size of jumbo bag from 750 kg. to 850 kg, which can reduce the transportation trip and reduce the GHGs emissions for 36.7 Ton of CO2 equivalent and reduce the expenses by 4.9 million baht.

Eastern Procurement Network: EPN

GC has taken part in the EPN Network which comprises of 17 members from the leading companies in industrial sectors. The Network will hold regular seminars on procurement management. The benefits from this network are to gain better practices, exchange ideas in supply chain management, as well as increase the bargaining power as collective buyers and emphasize on the specific spare parts or catalyst procurement, which can be considered as part of the Business Continuity Management (BCM).

Supplier Satisfaction Survey

GC builds relationships and continuously develops our suppliers. The company also operates a transparent and verifiable business while constantly improving the operating system so that it corresponds to the current situation in order to enhance operational efficiency and create supplier satisfaction. Consequently, the result of the Supplier Satisfaction Survey consistently indicates good and excellent supplier satisfaction levels.