Supply Chain Management
Supply Chain Management
Management Frameworks
Ditto (Thailand) Public Company Limited is committed to ethical business conduct, guided by strong governance principles, and prioritizes sustainable supply chain management in line with international benchmarks. This strategy is designed to encourage its trading partners to adopt the company's sustainability practices, addressing the operational impacts on governance, economy, environment, society, occupational health, and safety. Additionally, it champions anti-corruption policies, upholds good governance, and manages supply chain risks to facilitate steady business development and ensure mutual growth and sustainability
- Committed to efficiently managing the supply chain and supporting capacity building in alignment with the company's growth strategy.
- Deliver quality products and services to customers on time.
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Promote environmentally friendly green procurement.
Beyond standard procurement practices - Operate with transparency, efficiency, and auditability.
Supplier Ethics and Partner Relations
Ditto (Thailand) Public Company Limited is committed to upholding corporate governance, human rights, social, and environmental principles. To facilitate sustainable business growth, the company has established a Business Partner Code of Conduct, which aims to ensure its partners conduct their operations responsibly towards economic, community, social, and environmental considerations, while also promoting transparent and ethical business practices.
Key Partner Analysis
Ditto (Thailand) Public Company Limited is committed to sustainable supply chain management, driving environmental, social, and governance (ESG) efficiency to strengthen collaborative efforts with strategic partners. For 2023, the company has classified its key partners based on two distinct evaluation criteria.
Key Performance Highlights 2023
Promoting Membership in Anti-Corruption Alliances
The company has formally declared its intention to join the 'Thailand's Private Sector Collective Action Coalition Against Corruption' (CAC), showcasing its dedication to conducting business with strong governance, managing with integrity and ethical principles, and prioritizing the fight against corruption. The company extends invitations to partners to participate in the CAC network and distributes its Business Code of Conduct and anti-corruption guidelines.
Vendor Sustainability Assessment and Operations
Ditto (Thailand) Public Company Limited evaluates the sustainability risks of its business partners, assessing corporate governance, economic, social, and environmental risks of key suppliers through ESG self-assessment questionnaires. This initiative supports the group's sustainable supply chain management, focusing on business, environmental, and social considerations. Risk assessments are prioritized using predetermined criteria, and partner management strategies are tailored to the identified risk levels, in accordance with established guidelines.
Overall Assessment Results of Partner Corporate Governance, Economic, Social, and Environmental Risks
According to the cumulative evaluation of corporate governance, economic, social, and environmental risk factors using ESG risk assessment criteria, the company's major partners are operating in alignment with commendable standards.
- Level A - Very low risk: 20 entities
- Level B - Low risk: 4 entities
The risk assessment outcomes vary across individual risk categories, as outlined below:
- Evaluation of Corporate Governance and Economic Risk Assessment
- Level A - Very low risk: 19 entities
- Level B - Low risk: 5 entities
- Evaluation of Social Risk
- Level A - Very low risk: 19 entities
- Level B - Low risk: 4 entities
- Level C - Moderate risk: 1 entity
- Evaluation of Environmental Risk
- Level A - Very low risk: 15 entities
- Level B - Low risk: 4 entities
- Level C - Moderate risk: 2 entities
- Level D - High risk: 3 entities
To improve partner operations in managing risks across various areas, the company proposes the following recommendations/corrective actions:
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New Approved Vendor
For the selection of new partners, the company emphasizes sustainable new partner management approaches to enhance management efficiency and minimize long-term risks. Alongside the standard partner registration form, new partners are required to complete an ESG self-assessment questionnaire to evaluate risks before participating in the procurement of goods and services. This ensures partners conduct business with a commitment to social, environmental, and ethical standards.
7 key partners were selected in 2023 and completed the ESG (Self-Assessment Questionnaire) evaluation.
The ESG (Self-Assessment Questionnaire) evaluation for new partners, as per our supply chain management procedures, will be officially applicable from 2024. All new partners must successfully undergo this evaluation and confirm their understanding of Ditto's Business Code of Conduct for Partners before procurement activities can commence.
Results of On-site Partner ESG Audits Conducted During the Year
The company has established on-site partner audit criteria in accordance with supply chain management practices. As 2023 is the first year for developing these criteria, the company is currently refining the on-site partner audit guidelines and standards. Therefore, on-site partner audits were not conducted in 2023.
Trade Credit Policy and Terms
Ditto (Thailand) Public Company Limited treats all creditors with impartiality, fairness, and transparency, adhering strictly to terms and agreements to maintain creditor confidence. The company establishes fair payment terms for its partners, emphasizing liquidity and cash cycle management for business continuity. Ditto (Thailand) Public Company Limited’s credit term policy ranges from 7 to 60 days, with details provided in the financial statements as follows:
As per the summary table, the 30-day credit term experienced a 9-day delay in payment receipt. This was attributed to partners submitting invoices outside the agreed-upon timeframe. The company's 2023 invoicing, check collection, and payment transfer schedule, announced on November 22, 2022, resulted in payment receipts exceeding the stipulated period.
Supply Chain Management Policies and Implementation
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Supply Chain Management Policies and Implementation
