Supply Chain Management

Supply Chain Management Strategy and Sustainability Integration

Governance Structure and Management Approach

BDMS oversees its supply chain under a comprehensive governance framework encompassing strategic direction, responsible procurement policy, supply chain risk management, and business continuity management. BDMS Supply Chain and Resource Management Committee is responsible for establishing strategic direction, overseeing operations, and systematically reviewing supply chain performance to ensure operational efficiency, transparency, and alignment with international best practices.

In this regard, the Committee is responsible for consolidating, monitoring, and reporting progress on supply chain management through designated supply chain representatives to the Sustainable Development Committee, in order to supervise, monitor, and drive the organization toward achieving its sustainability objectives on a continual basis.

Furthermore, performance outcomes, targets, and progress are regularly reported to the Corporate Governance and Sustainability Committee, as well as the Board of Directors, to ensure that supply chain management processes are implemented effectively, fairly, transparently, and in a verifiable manner. This also ensures alignment with stakeholder expectations across all groups and supports the organization’s long-term sustainable growth.

Management Approach

Supply Chain Management Strategy

The organization has established the “BDMS Supply Chain Synergy” strategy as a key framework for enhancing supply chain efficiency and sustainability through collaborative integration across its hospital network and business partners. The strategy encompasses procurement, warehousing, distribution, and inventory management processes in a systematic manner to ensure the availability, accuracy, and adequacy of medical resources in alignment with patient and service demands. This contributes to improved quality of healthcare services, optimized resource utilization, and strengthened supply chain resilience.

BDMS also implements a centralized procurement approach to enhance governance efficiency, strengthen transparency, and support operations in accordance with international standards. The integration of data across all business units enables the organization to analyze trends and undertake strategic planning for the continuous improvement of procurement processes.

In addition, the organization incorporates sustainable procurement principles into supplier selection and evaluation processes by taking into consideration human rights, business ethics, legal compliance, and the management of environmental and social impacts. This ensures that operations throughout the supply chain are aligned with the Supplier Code of Conduct and responsible business practices.

At the same time, BDMS is committed to strengthening strategic relationships with critical suppliers through knowledge sharing, joint capability development, and the promotion of high-quality and environmentally friendly products and services. These collaborative efforts contribute to the development of a sustainable value chain, mitigation of supply chain risks, and enhancement of the long-term competitiveness of both the organization and Thailand’s healthcare system.

Ethics and Supplier Practices

BDMS Supplier Code of Conduct

BDMS has established a Supplier Code of Conduct and communicates it to suppliers to promote mutual understanding, strengthen supplier relationships, and create sustainable value for both internal and external stakeholders. The Company also aims to foster continuous improvement throughout the supply chain across economic, social, environmental, and governance dimensions.

The Supplier Code of Conduct emphasizes transparent, fair, and accountable business practices. BDMS monitors supplier performance through assessment and audit processes to ensure compliance with the Supplier Code of Conduct. In cases where suppliers violate the requirements of the Code and such violations adversely affect BDMS’s business operations, the suppliers may be subject to a review process that could result in removal from the Approved Vendor List (AVL) within the procurement system.

Scope of the BDMS Supplier Code of Conduct

Sustainable Supply Chain Management Approach

• Sustainable Supplier Selection and Evaluation

  The company conducts procurement of goods and services from both new and existing suppliers through a structured process of supplier sourcing, selection, and evaluation in accordance with the company's sustainability criteria and Supplier Code of Conduct, including the registration of approved suppliers under the Approved Vendor List (AVL).

• Supplier Risk Management and Sustainability Enhancement

  The company manages supplier sustainability risks in alignment with the Supplier Code of Conduct through continuous monitoring and performance evaluation, including supplier audits and collaborative improvement programs with suppliers.

• Digital Supply Chain and Artificial Intelligence (AI)

  The company enhances procurement operations through digital platforms and the application of artificial intelligence (AI) to improve operational efficiency, strengthen data analytics capabilities, and maintain long-term competitive advantage.

• Cost Management Excellence

  Effective cost control is implemented throughout the procurement process across all categories of goods and services to improve overall operational efficiency.

• Co-creation of Innovative Products and Services with Suppliers

  The company supports suppliers in developing new innovations and creating shared value, while promoting environmentally friendly procurement practices (Green Procurement) to integrate sustainability throughout the entire supply chain.

Supplier Selection

Supplier Selection Supplier Selection Process

The Company procures goods and services from both new and existing suppliers listed in the Approved Vendor List (AVL). All suppliers are required to undergo supplier sourcing and evaluation processes based on the organization’s sustainability criteria and must strictly comply with the BDMS Supplier Code of Conduct.

Supplier Selection and Sustainability Assessment Criteria

• Price and quality of products and services: 90%

  Assessment criteria include:

  • Product and service quality

  • Pricing and financial stability

  • Customer service

  • Delivery performance

  • Technology and innovation capabilities

  • Manufacturing standards and relevant certifications, such as FDA approval, GMP, PIC/S, ISO 9001, ISO 13485, TISI, or CE Mark certification.

• Sustainability Performance 10%

  Governance Impact

  e.g., compliance with applicable requirements, non-disclosure of information without consent, and the existence of a Supplier Code of Conduct to support sustainable procurement practices.

  Social Impact

  e.g., compliance with labor standards and human rights principles, and certification for occupational health and safety management systems such as ISO 18001 or ISO 45001.

  Environmental Impact

  e.g., implementation of measures to reduce environmental impacts, certification of environmental management systems such as ISO 14001 or Green Procurement, as well as the use of environmentally certified products, such as paper and employee uniforms made from recycled materials, and systematic environmental management practices.

Identification of Critical Suppliers

The Company has established a supplier segmentation and prioritization process, with particular emphasis on identifying critical direct suppliers based on their level of business relevance to the organization, together with the assessment of suppliers’ sustainability risks. This process is conducted with reference to relevant documents and supporting information.

The identification of critical direct suppliers is based on two key considerations:

1. Sustainability Risk Management of Suppliers

   The Company manages sustainability-related risks associated with suppliers across governance and economic, social, and environmental dimensions in alignment with the Company's policies. Supplier risk assessments are conducted based on the following factors:

   

2. Business-Related Factors Management

   The Company has established criteria and processes for supplier selection and prioritization based on the significance of product or service categories to business operations. This enables the Company to effectively manage suppliers that are critical to operational continuity and strategic business objectives.