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Management of sustainable supply chains
Progress against Plan
 
Plan 2017 Target​ 2017 Accomplishments ​2018 Target
​On-site audits Conduct on-site audits on 9 hydrocarbon suppliers and 100% audits on critical indirect procurement supplier Conducted on-site audits on 11 hydrocarbon  suppliers, and 100% audits of critical supplier groups ​Conduct on-site audits on 13 hydrocarbon suppliers and 100% of critical suppliers
​Reduce major accidents from transportation to zero by 2020 ​0.05 times per 1,000,000 km ​0.049 times per 1,000,000 km ​0.05 times per 1,000,000 km
Value creation through Hydrocarbon Supply Chain Management 65 million baht was generated by managing hydrocarbon supply chain to add value, increasing customer satisfaction and reducing environmental impacts 82 million baht was generated by managing hydrocarbon supply chain to add value, increasing customer satisfaction and reducing environmental impacts ​65 million baht was generated by managing supply chain to add value, increasing customer satisfaction and reducing environmental impacts
PTT Group Strategic Sourcing Increased in value by 23% of product and service spending, from a collectively procurement  to create added value and synergy within PTT Group ​Increased in value by 18.69% of product and service spending, from a collectively procurement  to create added value and synergy within PTT Group ​Increased in value by 17% of product and service spending, from a collectively procurement  to create added value and synergy within PTT Group
​Supplier satisfaction in working with procurement functions ​ ​ Hydrocarbon Suppliers​
Achieve 90% satisfaction rate in 2017 92.4% satisfaction ​90% satisfaction
​Non-hydrocarbon Suppliers ​
Achieve 85% satisfaction rate in 2016 ​85% satisfaction ​85% satisfaction
​Local Procurement​ Procure more than 95% of products and services locally ​95% goods and services locally procured ​Procure more than 95% of products and services locally
 
 
Environment Social and Governance Suppliers Assessment
In 2017, nine 20 Ethanol/ B100 suppliers received corrective action plans covering individual safety, safety training program from a supplier’s company, and safety standard and restriction at Ethanol car-distribution point as well as appropriate personal protective equipment during Ethanol car-distribution. For fire safety plans, suppliers reviewed and installed a fire system covering the control room and storage tanks as well as random audits on the availability of fire-fighting equipment. Details of the audit informing companies of the audit date and auditor name were posted as future reference information. In addition, PTT provides its suppliers with suggestions to create a safer environment and community.
 
The Fatty Acid Methyl Ester Biodiesel (B100) inventory management
In 2017, PTT encouraged supply chain sustainability through supporting national alternative energy policy by managing the Fatty Acid Methyl Ester Biodiesel (B100) inventory to maintain palm oil market stability and minimize impacts on raw material overstock. These could sustainably drive supplier forward with PTT and correspond to PTT Pride and Treasure vision.
 
The PTT-PTTGC Logistic Improvement project
The PTT-PTTGC Logistic Improvement project, a partnership between PTT and a refinery of PTT Global Chemical, is to improve the efficiency of product supply and delivery. The project comprises efficiency improvement for PTT’s logistic management system and the oil loading process for trucks at the refinery to increase the volume loaded. The project began with brainstorming on how to improve truck loading from refinery plant and PTT logistic management system and continuously operated within trial process. These resulted in increasing the number of truck loading by 78% compared to conventional logistics and better respond to the demand for improved loading efficiency. The improvement reduced logistics costs by approximately 6.4 million baht per year.
 
Sustainable Materials Sourcing
PTT  demonstrated its commitment to sustainable materials sourcing in alignment with the public sector’s efforts, by developing a Sustainable Procurement Requirements Manual encompassing 23 procurement classifications. The Manual supports various departments in systematically applying environmental requirements accurately and appropriately, along with disseminating knowledge and understanding on environmentally-friendly procurement to suppliers and employees. This includes organizing seminars for suppliers, communicating examples of environmental requirements and knowledge sharing on different types of eco-labels. Moreover, five suppliers were successfully aligned into Green Industry program of Department of Industrial Works as from the PTT’s promotion and encouragement in 2017.
 
PTT Procurement Management
The Procurement Management Committee is responsible for ensuring that procurement processes are fair and transparent. This is accomplished through assessing the efficiency of procurement processes to develop as a standard in performance evaluations, which include assessing work stages in the procurement process, approval authority, and accuracy of payment documents. Moreover, PTT provides consultations on procurement practices to support organizational learning, which will lead to further collaboration and streamlined approaches to procurement and ultimately achieve the goal of a transparent organization under the vision of Pride and Treasure of Thailand.
 
Procurement Officer Capacity Building
PTT and PTT Group companies reviewed and planned employee capacity building programs throughout the year to train procurement staff to respond to organizational changes effectively. Over the past year, PTT announced the use of the PTT Group Sustainable Procurement and Supplier Management Policy and Sustainability Performance Assessment Form to procurement staff, relevant departments, and suppliers. PTT further trained procurement officers on skills to effectively and easily use the work system that was recently developed to support organizational procurement process and management. This allows for shorter duration spent, and a more systematic and effortless approach. It also enables employees to work more efficiently and effectively overall.
 
Procurement Spending
Tier1 Supplier (No.) 
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Value of Procurement Spent (Billion Thai Baht)
 
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