Supply Chain Management
Management Frameworks
We are committed to conducting business with integrity, adhering to good governance principles, and focusing on sustainable partner management in line with international standards. We encourage our partners to align their operations with our sustainability practices, considering the impacts of corporate governance, economic factors, environmental stewardship, social responsibility, occupational health, and safety. We promote anti-corruption policies, support operations based on good governance, and manage risks across the entire supply chain to ensure stable business growth, fostering shared prosperity and sustainability.
- Efficiently managing partners and supporting capability enhancement aligned with the company's growth strategies.
- Deliver quality products and services to customers on time.
- Promoting Green Procurement beyond general procurement, favoring environmentally friendly purchasing.
- Operate with transparency, efficiency, and auditability.
Ditto's Business Partner Code of Conduct
We prioritize our partners' adherence to corporate governance, human rights, and social and environmental responsibility, as these significantly impact our long-term business operations. Therefore, we have established a Business Partner Code of Conduct. Our aim is for our partners to operate responsibly towards the economy, community, society, and environment, and to conduct business together with transparency, ethics, and good governance.
Ditto Business Partner Code of Conduct
(Supplier Code of Conduct)
Key Partner Analysis
In 2024, the Company has implemented a classification system to identify and prioritize suppliers that are critical to our operations. Suppliers are assessed and categorized into two main types based on the following criteria:
Critical Tier 1 Supplier
ㆍProvide essential goods or services that are integral to the Company’s
business operations (Critical Component Suppliers)
ㆍServe as sole-source suppliers with no viable alternatives (Non-
Substitutable Suppliers)
ㆍRank within the top 80% of total contract value in 2024 (High-Volume
Suppliers)
Critical Non-Tier 1 Supplier
This group includes suppliers that are not directly engaged in business with the Company but are still considered critical. They are evaluated
based on the same criteria used for Critical Tier 1 Suppliers.
Key Operational Performance for 2024
In 2024, the Company engaged with a total of 367 suppliers, with total
procurement value amounting to THB 1,018,948,113.82. Based on
predefined criteria, the suppliers can be classified into the following groups:
Critical Tier 1 Suppliers
ㆍ26 suppliers, representing 7.08% of the total supplier base
ㆍAccounted for 80.85% of total procurement value in 2024
.
Critical Non-Tier 1 Suppliers
ㆍ6 suppliers identified as critical but not directly contracted with the Company
Sustainability Risk Assessment of Suppliers and Follow-up Actions
In 2024, the Company assessed sustainability-related risks of its critical Tier-1 suppliers and newly engaged suppliers with procurement value exceeding THB 1 million. The assessment was conducted via a self-assessment ESG questionnaire covering business operations, governance, environment, and social responsibility.
Overall ESG Risk Assessment Results in 2024 (ESG Self-Assessment)
In 2024, the Company conducted an Environmental, Social, and Governance (ESG) Risk Assessment of its business partners using comprehensive evaluation criteria covering all relevant dimensions. The results revealed the proportion of suppliers exposed to risks in the areas of governance and economic performance, social responsibility, and environmental impact, as follows:
Distribution of Supplier Risks across Governance, Economic, Social, and Environmental Dimensions
The assessment revealed that three suppliers were identified as high risk, specifically in the areas of corporate governance and environment. Corporate governance risks stemmed from a lack of sufficient governance policies, insufficient systematic and effective risk management systems, and a lack of channels for receiving complaints. Regarding environmental risks, most suppliers lacked specific environmental operational and management requirements, as well as community engagement in sustainable development. No suppliers were found to have economic or social risks.
The Company actively monitored and managed the high-risk suppliers, particularly concerning environmental issues where most lacked clear policies or guidelines. We provided recommendations and guidelines for policy development and operational procedures for suppliers to adopt.
Regarding on-site audits, the Company did not conduct any in 2024, as the criteria and guidelines for such audits are currently under development. However, the Company has scheduled these audits for 2025 to ensure efficient and continuous assessment and monitoring of supplier ESG performance.
New Approved Vendor Selection
In line with the Company's policy and guidelines for sustainable new vendor management, aimed at enhancing management efficiency and reducing long-term risks, all new vendors must undergo a supplier assessment process and acknowledge our Business Partner Code of Conduct. For new vendor registration, in addition to completing the standard registration form, we send an ESG Self-Assessment Questionnaire to new vendors with procurement values of THB 1 million or more. This ensures a comprehensive risk assessment for all, along with their acknowledgment of our Business Partner Code of Conduct, ensuring business operations are founded on social responsibility, environmental stewardship, and ethics.
In 2024, a total of 33 new vendors with procurement values of THB 1 million or more were required to undergo the ESG Self-Assessment. All of them (100%) completed the risk assessment questionnaire. This group included 15 critical new vendors.
Support for Anti-Corruption Network Participation
The Company has declared its intention to join the "Thailand's Private Sector Collective Action Coalition Against Corruption (CAC)." This reflects the Company's commitment to operating under good governance principles, ensuring honest, ethical, and moral management. We place the utmost importance on combating fraud and corruption. We extended invitations to 44 trading partners, comprising key and new partners with purchase order values exceeding THB 1 million, to join the CAC network. Concurrently, we disseminated our Business Code of Conduct and anti-corruption guidelines. All key trading partners (100%) have accepted the invitation. Currently, the Company is in the process of preparing documentation to apply for CAC membership certification from the Thai Institute of Directors.
On-site ESG Audit Results for the Year
The Company has been developing criteria for on-site supplier audits as part of its supply chain management guidelines. 2024 marked the first year for developing these audit criteria, which are currently undergoing further development. Therefore, no on-site supplier audits were conducted in 2024. However, suppliers were monitored after being provided with policy development and operational guidelines for adoption.
On-site Supplier Audit Criteria
Supplier Engagement in Sustainable Business Development
The Company organized training and workshops for our suppliers and business partners, including Netbay Public Company Limited and TEAM Consulting Engineering and Management Public Company Limited. These sessions focused on sustainable business operations, with external experts invited to provide insights. The goal was to equip our employees, management, partners, and business allies with knowledge, understanding, and approaches for conducting business with consideration for Environmental, Social, and Governance (ESG) factors. This initiative aims to make partners feel supported and valued as key allies, beyond merely being suppliers of goods/services. It fosters cooperation towards shared goals and long-term mutual growth.
วันที่ 8 กรกฎาคม 2567 July 8, 2024: Workshop on ESG Performance Evaluation Criteria and Indicators for Sustainable Business Management at The Grand Fourwings Convention Hotel (Srinakarin Road). This seminar provided insights into the concepts and principles of corporate sustainability development, ESG assessment, and their application in business, enabling analysis of long-term business risks and opportunities from a sustainability perspective.
November 27, 2024: "Corporate Strategy Primer" Training at Lancaster Bangkok Hotel. The Company's management team and business partners gained an understanding of the meaning, role, and importance of corporate strategy for business success. This prepared them to address trends in Digital Disruption, ESG, and Sustainability, striving for long-term success in a rapidly changing business environment.
The two main seminars in 2024 provided the Company and its business partners with opportunities to exchange knowledge and experiences. We jointly set ESG targets and carbon reduction guidelines. A key outcome of this collaboration is the development of a "Carbon Credit Business Plan" and its extension into joint business operations in a Green Business model. This initiative combines the strengths of companies with technological and innovation capabilities with those possessing resources like forest areas or potential for carbon sequestration, to collaboratively develop projects that can generate and sell carbon credits under T-VER certified standards. This cooperation also leads to the formation of long-term business partner networks focused on sustainable mutual growth, with a shared goal of creating economic value while caring for the environment and society.
Trade Credit Policy and Terms
Ditto (Thailand) Public Company Limited treats all creditors equally, fairly, and transparently, strictly adhering to terms and contracts to maintain creditor confidence. We set fair payment terms for our partners. The Company prioritizes liquidity and cash flow management to ensure business continuity. Our policy establishes credit terms ranging from 7 to 60 days. The details of Ditto (Thailand) Public Company Limited's credit terms, as reflected in the financial statements, are as follows:
From the summary table above, the 30-day credit term shows an 11-day overdue period. This is because partners submitted invoices beyond the stipulated timeframe. The Company announced its bill submission, check collection, and bank transfer schedule for 2024 on November 23, 2023, which resulted in payments being received beyond the designated terms.
