Supply Chain Management Strategy

EGCO Group is determined to ensure the sustainable procurement of products and services, which is implemented with operational excellence, transparency, and fairness. The principles of good governance, environmental management, and social responsibility are applied to the issues deemed important by the company and aligned with international operational guidelines. Partners, suppliers, and stakeholders are encouraged to acknowledge and adopt EGCO Group’s procurement policy and align their practices with the company’s operational framework as provided below

1. Determine supplier qualifications and supplier selection process to ensure that the suppliers can deliver products and services that meet the requirements on time and agree to comply with the Supplier Code of Conduct.
2. Establish a supplier selection process and undertake a preliminary risk assessment to ensure the transparency and fairness of the process. This process also allows EGCO Group to understand suppliers’ potential risks and, therefore, be able to determine sufficient measures to mitigate such risks.
3. Monitor suppliers’ operations to ensure that the quality of delivered products and/or services meets the order requirements.
4. Establish approaches to address complaints or evidence of the non-compliance with Supplier Code of Conduct.
5. Communicate and understand all parties involved in the business operations throughout the supply chain, subsidiaries, joint venture companies, as well as suppliers/business partners.

The implementation of supplier management is reported to the President and the Board of Directors, who lead the Business Update Meeting every 3 months. This is to provide operational updates and receive suggestions and directions for improving the ESG SCM Program, thereby contributing to the maximum benefits for both the company and its suppliers