Supply Chain Management

• All new suppliers are required to complete a self-assessment on sustainability through the Company’s online platform. Some supplier groups must undergo additional prequalification assessments, including company credibility and financial management capability, technical expertise and technological innovation, quality management systems, and consideration of safety, occupational health, and environmental impacts, including recognized certifications

• The responsible department and/or central procurement unit reviews supplier background in Environmental, Social, and Governance (ESG) aspects, including corporate reputation, country risk, industry-specific risk, product/service quality risk, and delivery/service performance risk.

• Supplier selection is conducted through open bid or electronic auction (e-auction), comparative assessment of three suppliers, evaluating technical capabilities and cost-effectiveness separately, and direct procurement via the e-catalog system for products/services pre-qualified through annual supplier evaluation.

• Selection criteria include quality, price, service, accuracy of terms, quantity, timing, origin, and delivery location. Additionally, each unit sets a limit on the volume of work per supplier to ensure fairness, avoid monopolization, and diversify operational and delivery risks.

• Sustainability self-assessment scores are factored into the supplier selection process, weighted between 30% and 100%, depending on the product or service category.

• All screened and selected suppliers must formally acknowledge compliance with the Company’s Supplier Code of Conduct.  

• Tier-1 Suppliers

  • Procurement transactions show high spending value based on spend analysis, and the supplier demonstrates strong financial stability.
  • The product or service is critical to the Company’s operations, including strategic importance or the potential to support crisis response.
  • The Company has high dependency on the supplier, with limited alternative suppliers in the market.

• Indirect Key Suppliers

  • There are environmental, social, and governance (ESG) risks or opportunities within the supply chain.
  • Indirect key suppliers are identified from the list of key suppliers.

In 2024, Central Pattana had 4,479 Tier-1 suppliers, totaling THB 12.71 billion in procurement value. Among these, 129 were identified as key suppliers, accounting for THB 5.992 billion—representing 3% of total suppliers and 47% of total procurement value.

• Key suppliers are subject to additional sustainability risk assessments based on the following criteria:

  • Possession of a sustainability policy aligned with the Company’s direction
  • Contract duration exceeding one year
  • Potential for strategic collaboration and scalability
  • Contributions to innovation, technology, and circular economy practices
  • ESG risks or opportunities within the supply chain

• All suppliers are evaluated upon each delivery by the procuring department via QR code scanning within the Company’s procurement system (for purchases through the central procurement unit).
• Key and indirect key suppliers undergo document-based sustainability assessments upon request by the central procurement team and/or relevant units.
• High-risk key suppliers are audited weekly or at defined intervals onsite by the responsible units, with random inspections by senior management. These audits cover construction, production, service delivery, and adherence to fair practices, safety, human rights, and the prevention of negative impacts on subcontractors, workers, the environment, and surrounding communities.
• Key suppliers may also be subject to specialized audits by external experts in safety, traffic impact, environmental and biodiversity impacts, and green building standards, according to international standards and the Company’s Supplier Code of Conduct.
• Some suppliers undergo in-depth audits using primary data at their operating sites to assess delivery reliability, development potential, and readiness for future strategic partnerships.

• Suppliers must develop and complete Corrective Action Plans (CAPs) within defined timelines if they fail to meet assessment criteria. Failure to comply may affect their registration status in the following year.
• Clear disciplinary actions are enforced for violations, particularly concerning safety, according to the Safety Evaluation Checklist and the Company’s rules and regulations.

• Suppliers passing document-based or onsite evaluations are compared with peers in the same product/service category for potential development into strategic business partners. The goal is to mitigate supply chain risks and enhance supplier capabilities based on necessity and readiness.

• Suppliers found in violation of the Supplier Code of Conduct or contractual obligations, or who fail audits, are subject to blacklisting until corrective actions are completed and validated by the responsible department and relevant review committees.
• Supplier registry reviews are conducted regularly by each unit in accordance with the Company’s procurement policies and annual supplier retention assessments.