Supply Chain Management

Supply Chain Management

Development of new technology and innovation can reduce transportation costs and shorten production supply chain including service rendering period. The intermediary of operations has been reduced gradually in importance. During the period, blockchain has increased its roles in monitoring the supply chain of business as it allows the customers to monitor products delivery time or progress on information service rendered by the service providers. However, the Company cannot only consider about factor which is important to supply chain service. The Company therefore places importance on supply chain management in order to reduce risks in various business operations, including but not limited to cost risks in the supply chain, risks of shortage of raw materials and inventory, risks of business interruption, and risks of Environmental Social and Governance (ESG) that may arise from the operations of suppliers. In addition the Group has to also consider about social and environment factors within supply chain of product and service of the Group, such as labor issues and results from negative impacts on society arising from incomprehensive management throughout the supply chains. Therefore, the stakeholders expected that the Group should manage supply chain by taking into consideration social and environment factors, beginning from upstream until downsteam to promote sustainable business growth, the Company has a comprehensive supply chain management approach from the selection process of suppliers, quality control of products and services of suppliers, as well as the annual performance appraisal process. In addition, the Company can also follow up, detect problems that occur, and resolve problems in a timely manner as well as maintaining good relationships with stakeholders throughout the supply chain, consistent with the Group’s commitment to conduct business with suppliers in a transparent manner in response to sustainability action plans. Effective supply chain management can reduce production costs and can help the suppliers to prosper together. It also shows concern for the public and relevant stakeholders both directly and indirectly. Ineffective management of supply chain can make other stakeholders lose confidences in the Group, can tarnish the Group’s image and may reduce customer-base that it may lead to failure on business operations.

The company is the manufacturer of products and provider of services, so its involvement begins from production process to product and service delivery to the consumers. Hence, the Company foresaw importance on supply chain management; as a result, the Supplier Code of Conduct. In addition, it has issued regulations on procurement, including criteria for selection of suppliers, whereby the suppliers’ operations must be in line with the Company’s strategy. Most importantly, they must put emphasis on society and environment and must comply with international criteria and regulations. Working group has been appointed to inspect and ensure that such procurement has been undertaken with transparency and conformity with the relevant rules. The Company specified that its business partners must sign for acknowledgement of the Company’s Supplier Code of Conduct and shall consent the Compay to inspect the production process and service rendering to ensure that they conform to the Company’s regulations. In addition, it is specified that internal audit of all affiliates must be conducted to make sure that suppliers have complied with the criteria or regulations specified by the Company, for instance, companies engaging in food franchise business shall comply with supplier regulations of the franchise’s owner or the companies engaging in marine transportation business are required to have external certified inspector to jointly inspect the operations to make them conform to the international practices.

Supplier Sustainability Guidelines

  1. Procurement by take into account the cost-effectiveness, efficiency and effectiveness, both in terms of quality, price, and service in order to maximize the benefits of the Company.
  2. Procurement with a focus on business ethics, not taking advantage of suppliers, and providing accurate, complete, clear, open information, and treating suppliers equally, including listening to the opinions and suggestions of suppliers.
  3. Procurement with transparency, fairness, and accountability, strictly complying with relevant regulations and laws, including having good risk management and internal control.
  4. Procurement and management of suppliers in a sustainable manner, taking into account environmental impact, social responsibility, and good governance, or good corporate governance (Environmental, Social and Governance: ESG), including supervising suppliers to implement the Supplier Code of Conduct, which is part of sustainable supply chain management.

Selection of the Company’s Suppliers

When it is necessary to supply goods and services, the procurement officer will select a supplier from the Approved Supplier List and perform the following actions:

  1. Provide accurate, clear, adequate, and fair information on procurement requirements for goods and/or services to all suppliers who are qualified for that supply, to give qualified suppliers the opportunity to offer the goods and/or services equally.
  2. The first selection is based on the principle of consideration, focusing on the quality of the goods and/or services, reasonable prices, and other necessary requirements. The first-selected suppliers are required to conduct a self-assessment, covering goods and services, business, social, environmental, and social responsibility aspects, for consideration and approval of the procurement in the next step.
  3. Procurement officers will consider a supplier self-assessment, along with the quality of the goods and/or services, prices, and other necessary requirements.
    • Scores more than 70 percent, it is considered passed, the results will be compiled and presented to the authorized person for approval.
    • Scores less than 70 percent, it is considered disqualified, the procurement officer will notify the supplier of the results, and jointly formulate guidelines to prevent issues that may affect sustainability with the Company.
  4. Approved Suppliers will be assigned a status of Critical or Non-Critical Suppliers, based on the criteria for categorizing suppliers.
  5. After joining the Approved Supplier List, the supplier must pass the Yearly Performance Evaluation through the supplier assessment form by the Company together with the supplier’s self-assessment to follow up on operating results. In addition, during the year, the Company can file complaints and present problems arising from the use or environmental, social, and corporate governance issues. The Company will investigate the facts, consider taking action to solve the problem and giving advice and planning to develop the potential of suppliers together with related parties from all departments and suppliers before reassessment.

Criteria for Categorizing Suppliers

The Company has established criteria for categorizing the types of suppliers, which enables the Company to systematically analyze and formulate procurement strategies, including using it as a data for effective risk assessment related to suppliers by categorizing the criteria for categorizing suppliers as follows:

  1. Critical Supplier
    Suppliers with high contract values, high spend, difficult replacements, and those that are critical to the manufacturing process, and are at very high or high risk. The Company requires this group of suppliers to pass the Yearly Performance Evaluation through the supplier assessment form by the Company together with the supplier’s self-assessment and/or visit the operation site (On Site Audit) through the safety, occupational health and environmental audit procedures, and the Sustainable Practice Audit Assessment.
  2. Non-Critical Supplier
    Partners with medium service usage or low contract value, and with medium or low risk exposure, which the Company requires this group of suppliers to pass the Yearly Performance Evaluation through the supplier assessment form by the Company together with the supplier’s self-assessment and assessment from relevant departments.

Supplier Risk Assessment

An important factor that will increase the efficiency of supply chain management is risk assessment. Initially, the Company has a supplier risk management system consisting of a supply chain risk assessment, a supplier assessment questionnaire provided by the Company and a supplier self-assessment form, in order to identify important suppliers in the supply chain and to check the qualifications of those who will be registered as suppliers of the Company, with details of each issue as follows:

  1. Economic risk issues such as the risk of volatility in raw material prices, etc.
  2. Environmental risk issues such as greenhouse gas emissions, noise and vibration pollution, water use and wastewater emissions, energy use, handling of toxic waste, raw materials or equipment, and the impact on biodiversity, etc.
  3. Governance risk issues such as corruption, tax evasion, fair competition, and intellectual property rights.
  4. Social risk issues such as labor management, human rights, health and safety, and legal compliance, etc.

Thoresen Shipping

Supply chain management is the heart of business operations that drive competitiveness and operations. The company focuses on working together among stakeholders for maximum efficiency and effectiveness including considering the potential business risks, planning to find ways to prevent risks in various related areas, and setting up an action plan in accordance with the circumstances and also take into account the development and promotion of business potential with all business suppliers for sustainable growth by integrating sustainability issues in both governance, social, and environment in supply chain management in order to develop the corporation and suppliers to grow together in a sustainable manner.

PHC

Supplier Audit Standards

PHC, the franchise business of Yum! Brands, Inc., is required to comply with the supplier requirements of its franchise owner in order to fulfill Yum! Brands, Inc.’s mission of being the favorite brand of consumers and deliver 100 percent customer satisfaction. Therefore, to achieve this goal, PHC must adhere to food safety and quality at all stages. It starts with sourcing quality raw materials, good manufacturing process, finished product storage including transportation and distribution of products to PHC stores, quality, and food safety standards from suppliers, focusing on ensuring food quality and safety in every production process. The suppliers must be assessed in the same standard. Such audits are performed only by accredited and approved auditors. In order to ensure the most effective audits, audits are categorized by supplier type as follows:

  1. Food Safety Audit is a comprehensive audit of specific food safety and hygiene requirements.
  2. Quality System Audit is an audit of the production efficiency of products and the quality control system of the suppliers.
  3. Distribution Audit is the inspection of warehouse quality, storage standards to ensure compliance with product type requirements, prevention of contamination during storage, and quality inspection of product shipments that it is transported under the requirements of such goods such as temperature, cleanliness of the car, the hygiene of the carrier, the process of loading and unloading the goods, etc.
  4. Packaging Audit is an audit that covers the safety requirements of packaging that come into contact with specific foods.
  5. GFSI (Global Food Safety Initiative) Certification which is an international standard prepared for the purpose of establishing standards on food safety and hygiene. Where a supplier has established a system of quality standards and has obtained a GFSI Assessment result that complies with PHC’s requirements, the supplier may use that document to waive PHC’s standard audit.

YUM! Remote Audit

Factory audits are the best way to assess a supplier’s performance based on audit criteria. But due to the situation of the outbreak of the COVID-19 virus and changes in the domestic situation all the time causing restrictions on travel and inspection at the factory. Remote Online Audit is a great replacement option in 2021. Remote Audit is performed by an auditor of Yum! Brands, Inc. This program has been developed for the inspection process and details of the various steps to be like an audit at a factory. However, the method of sending and shared screen recordings while reviewing documents have been implemented for transparency. Therefore, online audits are a technology-based method for obtaining complete, concrete information and evidence from a distance and to ensure that manufacturers will always be able to meet and produce products that meet Yum! Brands, Inc.’s criteria, or if there is something that needs to be improved, it can be done in a timely manner.

AIM

The situation of the COVID-19 outbreak is a major problem that affects the world, whether it is the people's sector or the business sector, due to market conditions, including changing consumer behavior. In order for the Company to continue its business in a sustainable and stable manner, in addition to having to adjust to adapt to new situations, it also requires the use of “supply chain management” to manage relationships and the process of working with all stakeholders to ensure smooth operation, quality service, environmental friendliness and can meet the needs of customers along with adhering to good corporate governance, conducting business with a participatory and sustainable approach. Therefore, the company is in the process of studying supply chain management to have potential with all suppliers for sustainable growth together.

Material Sourcing

MaterialSourcing

The Group especially the food & beverage group, is committed to sourcing quality and safe raw materials from producers who are socially and environmentally responsible and place a lot of importance on raw material procurement since customer safety is first priority in the food industry as it costs the trust of its customers. Furthermore, the Company must consider the procurement of raw materials from sources that do not cause any impact on society and the environment, by which supplier must strictly follow as stated in Supplier Code of Conduct of the Company.

Thoresen Shipping

The company works by adhering to the policy framework for procurement of raw materials, goods, including service provider procurement, focusing on quality, speed, good cost management for the best benefits to the company, and to ensure the smooth and efficient operation and is aware of social and environmental responsibilities at the same time with the aim of developing the corporation and suppliers for sustainable and stable growth.

The company that operates the sea freight business which is a business that causes environmental impact both in terms of water pollution and/or air pollution. Therefore, the company is committed to complying with various rules and regulations including the development of work plans as a guideline for the most efficient operation and to reduce the environmental impact that will occur from the operation as much as possible. The company has switched to use low sulfur fuel oil instead of high sulfur fuel oil. Including in the supply of fuel for use in navigation, the company will consider the navigation plan for each trip, based on the amount of fuel, the type of fuel, and the port to refuel as well as inspecting the quality and standards of oil traders both inside and outside the country to ensure the highest standards and quality.

PHC and STC

PHC and STC, a franchise business of Yum! Brands, Inc, must comply with the regulations of franchising, including the procurement and sources of raw materials that must meet the quality standards set by the franchise owner. PHC and STC comply with the policy of procurement by using palm oil and packaging from Yum! Brands, Inc’s plantation forest. Moreover, STC has the policy to use only paper produced from the planted forest, which does not do any harm to the environment. In procurement, every raw material in production processes must pass the Food Safety testing and quality checks following Yum! Brands, Inc.’s policies.

In the procurement of raw materials, the company has a department that is responsible for raw material procurement and procurement to carry out the purchase of raw materials in accordance with the specified standards, including has also established a procurement audit committee which is a different person from the procurement officer to conduct an audit to be transparent. For PHC and STC, the Procurement Manager has been assigned to process raw material procurement, including to monitor the raw materials to comply with the standards of Yum! Brands, Inc.

The company has cooperated with its suppliers in raw material procurement by giving suppliers a certificate to avoid any suppliers with no code of business conduct and awareness to society and the environment. PHC also operates a business with SCG trusted supplier among eco-packaging producers. An eco-packaging is produced from plantation wood and easy to be decomposed. The supplier’s assessment and verification of the source of raw materials used in the production of paper packaging must be certified according to the following standards: Forest Stewardship Council: FSC, Program for the endorsement of Forestry Certification: PEFC, Sustainable Forestry Initiative: SFI. Moreover, the company always examines its suppliers as well as checking raw materials cost annually to ensure that all materials are of high quality, safe, and friendly to the environment.

AIM

Providing management services for reducing non-revenue water and piping installation and plumbing repairs, the main materials and equipment used in the work process are pipes, all types of plumbing pipes such as PVC pipes, HDPE pipes, etc. and equipment for plumbing installation such as joints, elbow joints, etc. The company will purchase such products and equipment from suppliers certified by the Provincial Waterworks Authority and the Metropolitan Waterworks Authority, considering price competition, suitable for use, and environmental considerations.

Quality and Safety of Products and Services

Quality and Safety of Products and Services

Quality and safety of products and services are one of the key factors that can improve quality of life. At present, consumers are increasingly interested in health and prefer healthy products or services, including organic products, such as illnesses from the disease or allergy risks from certain types of food. It is another thing that must be taken into account more as well. Thus, business owners should realize their importance and prioritize the quality and safety of their products more than the quantities of products and services given to consumers.

Thoresen Shipping

Thoresen Shipping is committed to maintaining high quality service standards and responding to customer needs appropriately and promptly. The company has expertise and experience in providing dry bulk marine freight services for main products such as coal, minerals/ores, and grains and in the dry bulk segment, such as steel, fertilizer, cement, agricultural products, etc. With the experience and expertise of the company, it can build confidence and credibility to the company’s customers to ensure that customers receive the best and most efficient service.

PHC and STC

Low-level of food service quality and food safety may have an adverse effect on the lives, health, and safety of consumers. This could impact negatively on the credibility of the Group at last. Moreover, not only time and costs are required to alleviate the aforesaid problem, our employees will be unemployed and will not have enough income to support their family in an event that the company is forced to close its door. Thus, by complying with food safety regulations, the company can reduce the cost-related problems that come with it, improve customers’ health and build customers’ trust. This will surely improve the consumption of our products and services over time and contribute to the sustainable growth of the company.

The company operates its food business under two restaurant franchises, namely Pizza Hut and Taco Bell. Therefore, it has a responsibility to deliver quality food that will not cause our consumers to fall ill. Under the company’s food safety management policy, every branch manager must possess food handler certificates, issued by the Ministry of Public Health. The company also follows laws and regulations on food safety from the Food and Drug Administration (FDA) and terms and conditions determined by our franchisor, Yum! Brands, Inc. In addition, the company is committed to meeting relevant requirements such as various ISO standards, Thai Industrial Standards (TIS), and is committed to continually improving its service quality management system. In-class or online training courses about the quality and safety of food are arranged to all restaurant employees to assure that those food products are clean and safe before delivering to the consumers. For example, the staff is instructed to wash their hands every time they enter the cooking area as well as before the food preparation. Our suppliers are also required to attend classroom training or individual coaching every year to update their understanding of food safety standards for products produced for the company.

In 2021, all of Pizza and Taco Bell’s staff have already completed the quality and safety of food training. Furthermore, 100 percent of Pizza Hut’s suppliers have already passed the food safety standards. Apart from that, the company also buys vegetables from sellers who obtained Good Agricultural Practices (GAP) certification and establishes quality and food safety policy.

Results of the quality and safety of food and services training
Participant in quality and safety of food and services training Percentage of participant in quality and safety of food and services training
2019 2020 2021
Employees 100 100 100
Suppliers 100 100 100

Both PHC and STC are committed to deliver quality and safety food to the consumers to maintain their good health. Thus, the company carries out food safety audits throughout its restaurants and suppliers every year and the company’s branches must be inspected to pass the standard requirements, including food safety standards, brand standards, and national legal standards, on average 2.25 times a year by an accredited third-party audit company with expertise in food quality and safety audits assigned by the franchise owner, to analyze the problems of each store and make improvements.

Due to the COVID-19 situation in 2021, some areas have become restricted areas and entry into those areas is prohibited during the specified months causing some restaurants to have remote standards check (remote check online) depending on the area.

For Pizza Hut, a branch manager is responsible for controlling food quality and safety as well as operating audit process. Consequently, there is a Food Safety Committee consisting of 2 Supply QAs and 2 Restaurant QAs and a meeting about the results of the inspection to find ways to improve and develop services and present to the team leader, store management team and related departments. All the processes are to ensure its operations and quality and safety food before delivering to the customers. Moreover, PHC discloses nutrition information on its website to allow customers to stay informed about their food choices.

Flowchart of Pizza Hut Restaurant Visit
The procedure for handling complaints
Complaints regarding quality and safety of products and services
Number of Complaints (times) 2019 2020 2021
Total numbers of received complaints 430 416 282
Number of resolved complaints 430 416 282

Additionally, the company has established channels for receiving complaints regarding quality and safety of products and services such as call center at 1150, www.pizzahut.co.th or www.facebook.com/pizzahutthailand. The Call Center is in charge of investigating the complaint regarding quality and safety of products and services in the first step and then reports to the Operation Department for further investigation. After the inspection is completed, the company will improve its service and the customer will be compensated by the Operation Department. The company will then summarize the complaints in order to find a way to prevent recurrence in the future.

PHC has passed the Safety & Health Administration (SHA) Standards, which are voluntary standard practice guidelines for entrepreneurs or the prerequisites that establishments must have to protect against COVID-19 which comes from public health measures plus the standard of tourism products. The Ministry of Health and the Ministry of Tourism and Sports have created the SHA symbol to certify the quality of the establishment. And once the badge is received, operators will be assessed, and will also be randomly inspected by agencies under the Ministry of Tourism and Sports from time to time, which consumers can be confident that PHC is one of the establishments that are working to improve the establishment in accordance with the new way of life under sanitary safety standards.

PHC has been approved by the Department of Health as a training organization for operators and food handlers. As operators and food handlers are important people in sourcing raw materials, cooking, and serving clean, safe, and nutritious food, it is imperative to have knowledge and understanding of sanitation principles and personal hygiene including relevant laws. PHC employees are considered food handlers who have undergone such training. PHC therefore wishes to seek approval from the Department of Health to become a training organization which was approved on 11 October 2021, resulting in PHC being able to fully train PHC’s employees and PHC employees can apply the knowledge to practice properly and be able to provide clean, safe food to consumers, as well as having good management in food establishments.

AIM

The company is committed to developing services according to business practices that are participatory and sustainable to improve the well-being of Thai society. The company’s main task is water resource management, which can reduce the amount of water loss that can be caused by using the company’s knowledge and expertise.

Customer Relationship Management

Customer RelationshipManagement

Customers are the core of every business as its operation cannot run smoothly without them. The understanding of customer’s behaviors can increase a number of company’s products that meet the needs of each customer group. Nowadays, over 70% of Thais use internet and smartphones. Thus, it is a great opportunity to bring technology into the scene to improve customer relationship management such as to develop mobile applications in order to advertise, and receive feedbacks along with suggestions from customers from the website and use Big Data to determine business strategies.

As a services provider to customers, the Group recognized the necessity of analyzing customers’ demands and fulfilling their real needs. Therefore, effective customer management will help the Group to gain customers’ trust, retain existing customer base and expand customer reach by encouraging customers to use products and services from the Group more.

The company has established practices toward customers in the Company’s Code of Business Conduct which was enforced in December 2009 and revised in February 2022. After every amendment to the Code of Business Conduct, the Company will communicate to the employees and related parties for acknowledgment every time, along with organizing a knowledge test, details can be followed on the website of the Company: www.thoresen.com

Thoresen Shipping

The company is committed to maintaining good quality service standards and able to respond appropriately and quickly to the needs of customers. In the past year, Thoresen Shipping continues to focus on retaining its existing customer base including expanding new customer base to expand the opportunity to expand the business and increase the competitiveness. Building a good relationship and providing good, efficient, and speedy marine freight services is the main policy of the company’s business operations. In addition, the company is committed to improving the level of service to its customers better in order to provide customers with good service and to achieve maximum satisfaction.

PHC and STC

In Food & Beverage business, PHC franchise has improved its customer relationship management to be more efficient and increased its customer satisfaction. It also relies on an analysis of customer information from Big Data to offer new products and response to real customer’s needs. A campaign features special menus or products according to customer groups. The customer relationship management is carried out by store manager and central office of PHC efficiently.

PHC has conducted assessments and surveys on customer satisfaction via online questionnaires or SMS. The number of respondents and surveys has met with the Yum! Brands, Inc.’s standards. The questionnaire includes questions regarding flavors, visual aspects, prices and other satisfaction factors. Market Research data from PHC’s Marketing and Outsource Department shows the customers’ satisfaction results as follows:

Indicator Customer Satisfaction Survey
2019 2020 2021
% OSAT (GES) 77 79 83

OSAT Overall Satisfaction is the rate showing customer satisfaction with the service

GES is Guest Experience Survey

The score reported is the percentage of the customers who took the test who rate it as highly satisfied.

For STC, there is also a customer satisfaction assessment whereby customers can submit an assessment as detailed at the bottom of the receipt. There are questions in many dimensions such as satisfaction of products, services, cleanliness, safety measures in the situation of COVID-19, etc.

Furthermore, PHC provides the following channels to receive customers’ complaints or suggestions: Call Center at 1150 or the company’s website www.pizzahut.co.th where the data is collected for service improvement. In an event that a complaint regarding services is filed, the store manager will analyze the received problems or complaints in various aspects for instance the cause of the problem(s), the location where a complaint arises, the number of complaints, etc. The company will then summarize the complaints in order to find a way to prevent recurrence in the future and conduct an assessment of satisfaction resulting from the resolved complaints. The company will then summarize the complaints in order to find a way to prevent recurrence in the future. Until now, there were no complaint regarding health and safety from Pizza Hut’s services.

In addition, PHC have a nationwide contest for all branches to participate in boosting customer satisfaction scores as well as other factors that may have a significant effect on customer touchpoints such as service speed and staff friendliness. The company also host a full-day training on GES program (overall program and hygiene topics) and special practices on COVID-19 crisis in order to cooperate with national disease control and ensure customers’ food safety and hygiene from the company.

AIM

The company has managed customer relationships in accordance with the strategy of developing a marketing business that focuses on responding to customer needs and being customer-centric. The company is in the process of studying customer relationship management to create a comprehensive operational guideline to meet customer needs in a sustainable manner.

Technology, Innovation, and Research and Development

Technology, Innovation, and Research and Development

Speediness of present-day technology can change lifestyles and global business operations and such change intensified challenges on undertakings of business. Development of innovation and technology is the heart of business operations as it can elevate competitive edge and make the Company able to quickly and promptly respond to the customers’ demands. Thus credibility and customer-bases of the Group can be increased and operating costs can be saved. The Group has a policy to promote innovation for the development and efficient operation of the corporation and continually formulate innovation strategies in accordance with the direction and business development plans of the Group.

Thoresen Shipping

The company has developed systems and applied technology to transport goods related to the marine freight services. This makes the delivery of goods faster and on time and can respond to customers’ needs more quickly. Technology has been applied to help increase the security of business operations and assigned to communication and technology departments to conduct research studies on new technologies to be used in operations such as installing CCTV to prevent pirates. In addition, the company also recognizes the importance of innovation and technology development for society and the environment, including strictly complying with environmental regulations to help reduce the impact on the environment that will occur by installing a Ballast Water Treatment system from an experienced US supplier on the company’s ships to ensure that the ballast water is always clean and does not harm the environment before it is released into the sea. In addition, NS Enterprise software for operation and maintenance management is also used to collect procurement data, scheduled and major maintenance, personnel management which helps to gather central information of the company. In addition, there are training for users to develop software to make it easier to use and develop various systems according to international requirements.

PHC and STC

With regards to restaurant business of PHC and STC, Research & Development Department and Communication & Technology Department have been assigned to research and develop products as well as to explore new technology for improvement of services. PHC has implemented production technology to reduce costs and increase convenience and service channel for easier accessible to products via Food Application by cooperation with Grab Food and Food Panda. In addition, POS system, i.e. e-wallet or wallet qr code, has been developed since the year 2019 to respond to the Cashless Society Lifestyle which has tendency to grow swiftly in the same direction all over the world and improve the company's website and the new POS (Point of Sales) system to support the growth of food business in new ways both sales and payment channels. Big Data System has also been developed in order to be accessible to the customers’ requirements and package program has been used to analyze the customer’s information (Customer Relationship Management).

In aspect of product development, the Group is determined to develop products continually. For the restaurant business, PHC has studied global trends by experimenting with real customers and global success of Pizza Hut Businesses in various countries. The company has cooperated with the customers on development of more varieties of products and development of manufacturing technology. Data of food delivery business, i.e. Grab Food, Lineman, Food Panda have been used to analyze the customers’ demands and behaviors such as small serving for one person etc., to strengthen confidence on rendering services to customers as food can be delivered on time and to help the company’s supplier on business expansion. PHC has developed production process by using smaller ovens which can reduce amount of used oil, save electricity cost and oil. Study on production process and procurement of good quality raw materials for producing heat used for making pizza has been conducted in order to develop quality and taste of food. Manufactures and farmers have also been inspected.

AIM

The company has the opportunity to bring high technology to optimize the production of tap water and drinkable mobile, with an experienced team, together with government agencies to help people affected by floods in many areas affected by disasters during the year 2011, such as Phetchaburi Province, Ayutthaya Province, Songkhla Province, etc.

Anti-Corruption Practices

Anti-Corruption Practices

As corruption remains a major threat to the world, every organization should realize the importance and collaborate in fight against it. All forms of corruption results in higher production costs and leads to a decrease in profit if product prices remain unchanged. On the contrary, if the Group would like to increase product prices due to higher costs, the demand for products may decrease. If the Group recognizes the importance of anti-corruption, it not only benefits from an increase in profit by reducing costs but also an improvement in the Group image and a rise in demand for products. The Group believes that all stakeholders are pleased to join or invest in the companies with good corporate governance and anti-corruption policy. With such belief and business collaboration, the Group can expand its business steadily.

The Group conducts business ethically and is committed to its responsibility for all stakeholders. To provide an anti-corruption practice guideline, the Board of Directors approved the Company to introduce the Anti-Corruption Policy from 2010 onwards. A revised policy is issued from time to time to ensure that it covers and is in line with current state of business conduct. For further information, the revised policy is disclosed at www.thoresen.com. Moreover, the resolution of the Board also approved for participation in Thai’s Private Sector Collective Action against Corruption (CAC). The Company and PHC announced its intention in CAC on 8 November 2019 and 25 February 2020 respectively to show determination to operate on transparency basis and to give all stakeholders confidence in its business conduct concerning anti-corruption.

The Company has officially been certified as a member of Thai Private Sector Collective Action Against Corruption (CAC) by Board of CAC on 30 September 2021. In addition, the Company also asks for cooperation from suppliers to fight against all forms of corruption and invites them to join the anti-corruption network.

The Company established various channels for receiving corruption complaints via letter, e-mail, or directly to the Internal Audit Department. Once the complaint is filed corruption complaints, the Internal Audit will be responsible for the pre-inspection. Then it will be reported to the Audit Committee for further consideration for the inspection result as well as an appropriate penalty in an event that a breach of the Anti-Corruption Policy is found. In the previous year, there is no corruption activity found in the Company. We aim to remain free from any forms of corruption at all times.

Channels for reporting and inspection in case of violation with the Anti-Corruption Policy

Performance on Anti-corruption
Number of Complaints (times) 2019 2020 2021
Number of complaints concerning corruption received 0 0 0
Number of complaints concerning corruption with proven guilty 0 0 0

Thoresen Shipping

The Company is determined to operate its business under the framework of good corporate governance, morality, along with social responsibility and all groups of stakeholders by operating the business in accordance with the rules and regulations of both the public and private sectors and operate with honesty, fairness, and transparency to build trust among suppliers and stakeholders in all sectors.

PHC

“Sustainable success will occur from the cooperation in management and operate with transparency, fairness, accountability, and determination to perform the right and righteous actions whether there is a surveillance person or a surveillance mechanism in place or not.”

Message from Mr. Wutichai Ratanasumawongs, General Manager
PHC Thailand

PHC has officially been certified as a member of Thai Private Sector Collective Action Against Corruption (CAC) by Board of CAC on 20 July 2021.

AIM

The company has an ideology to conduct business with integrity by adhering to social responsibility and all groups of stakeholders in accordance with good corporate governance as well as policies and practices towards the various stakeholders of the company to ensure that the company has appropriate policies, responsibilities, practices, and operating requirements to prevent corruption in all business activities of the company and so that decisions and business operations that may be at risk of corruption are carefully considered and acted upon.