Thanachart Group manages its supply chain from the process of selecting partners, considering their work history, the capabilities of the service teams provided, the quality of products or services, pricing, and the formulation of agreements specifying work scopes and terms. This includes providing services continuously and comprehensively, incorporating emergency response plans. Additionally, there is an evaluation of performance to gather information for considering future contracts.
These practices adhere to Thanachart Group's risk management policy, policies regarding the use of outsourcing, policies for outsourcing information technology services, and procurement regulations. Key operational guidelines of the Group’s member companies can be summarized as follows:
Vendor Selection
The selection of vendors involves assessing their knowledge, expertise, experience, and relevant capabilities related to the specific product or service. This evaluation considers factors such as value for money, efficiency, effectiveness, and overall performance in terms of quality, price, and the provision of the most beneficial services. Continuous monitoring of vendor operations is conducted, along with checks for both internal and external integrity to prevent any fraudulent activities. Employees are required to remain unbiased and impartial when selecting vendors, avoiding personal interests and ensuring that the selection process is fair. Information about vendors is gathered to verify the list of board members/managers within the Group to prevent conflicts of interest in transactions with vendors. Furthermore, vendors must have an impeccable legal record, free from litigation or actions that reasonably suggest an intention to violate laws, regulations, or relevant provisions related to anti-corruption, human rights, labor practices, or environmental management. The Company places emphasis on considering green procurement practices to minimize environmental impact, such as opting for products made from natural or environmentally friendly materials.
Identification of Importance and Risk Management from Business Partners
The Company categorizes its business partners into groups and prioritizes their importance based on business relationships. Guidelines are established for managing the risks associated with each group of business partners, considering factors such as the quality of service provided, dependence on partners, and expertise in specific business areas. For instance, in the securities trading operations system, there is a structured process of monitoring, reviewing, evaluating performance, and reporting, aligning with the importance of the system and services from various business partners. This approach ensures seamless and continuous operation of the business by selecting high-quality partners, suitable for the nature of operations and services provided. The Company also emphasizes appropriate diversification of key business partners and actively manages relationship with them to maintain stability.
Examples of Key Trading Partners of the Group’s Member Companies in 2025
Business Ethics of Partners
Aiming for business partners to conduct their business in accordance with legal requirements and business ethics, contracts are stipulated to ensure that the business partner controls and supervises Directors, executives, employees, hired personnel, operations, or other individuals subject to the control of the contracting party, to strictly comply with laws, regulations, or terms related to anti-corruption, human rights, labor practices, and environmental resource management.
Additionally, to monitor compliance with business ethics, a self-assessment method is employed by business partners. This self-assessment covers issues related to sustainable operations in environmental, social and governance dimension.
Example of Submitting Self-Assessment to Partners in 2025
Credit Term Setting
Thanachart Group Emphasis is placed on financial liquidity management, both within the Group’s member companies and business partners. This involves setting appropriate trade credit terms with partners after the delivery of goods or services. In 2025, the Company ensured timely payments to business partners in accordance with the established credit terms.
Examples of Trade Credit Terms Stipulated by Some of the Group Companies in 2025