Supply Chain Management

Supply Chain Management Strategy and Sustainability Integration

Governance and Management Structure

BDMS manages its supply chain under a comprehensive governance framework encompassing the formulation of responsible procurement strategies and policies, risk management, and the enhancement of business continuity throughout the supply chain. Environmental, social, and governance considerations are integrated into procurement and supplier management processes to support efficient, transparent, and sustainable business operations.

The BDMS Supply Chain and Resource Management Committee is responsible for setting strategic direction and operational guidelines, overseeing the implementation of strategies and policies, and monitoring, reviewing, and reporting supply chain performance and material risks to the Board of Directors. The Committee also oversees and ensures the continuous development and improvement of responsible supply chain management processes in accordance with the principles of transparency, fairness, and accountability to all stakeholder groups.

The BDMS Supply Chain and Resource Management Committee oversees the identification, assessment, prioritization, and monitoring of risks throughout the supply chain. It also establishes preventive and mitigating measures and reports on risk status and the effectiveness of risk management measures to the Board of Directors, thereby facilitating timely decision-making and responses to emerging situations. Particular attention is given to risks that may affect the quality and safety of products and services; the availability of medicines, medical supplies, and medical equipment; and the continuity of healthcare services. BDMS also enhances suppliers’ capabilities to enable them to grow alongside the Group, in compliance with applicable laws, national guidelines, and relevant international standards.

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 reviewed and updated its Supplier Code of Conduct to establish principles, guidelines, and expectations for suppliers conducting business with BDMS in an ethical, transparent, fair, and accountable manner. The Code is communicated to suppliers to foster understanding and support effective implementation. The revised Code covers six key areas: (1) business ethics; (2) quality and standards of products and services, and responsible sourcing; (3) labor practices and human rights; (4) occupational health, safety, and the working environment; (5) responsibility to communities and society; and (6) environmental responsibility.

The review strengthened BDMS’s approach to managing environmental, social, and governance (ESG) risks throughout its supply chain. The revised Code places greater emphasis on the quality and safety of products and services, traceability, responsible sourcing, personal data protection and cybersecurity, financial transparency, and anti-corruption. It also encourages suppliers to cascade these practices to their employees, subcontractors, and business partners, supporting continuous improvement and creating shared value for stakeholders both within and outside the organization.

BDMS monitors and evaluates compliance with the Supplier Code of Conduct through appropriate audit and assessment processes. Suppliers are required to cooperate and provide relevant information or supporting evidence upon request. Where non-compliance is identified, suppliers must take corrective action within the specified timeframe. Depending on the circumstances and severity of the non-compliance, BDMS may establish and monitor a corrective action plan, temporarily suspend business activities, or remove the supplier from the Approved Vendor List (AVL) within its procurement system. These measures aim to collectively raise operational standards, foster a transparent and resilient supply chain, and drive responsible growth.

Scope of the BDMS Supplier Code of Conduct

1. Business Ethics
2. Quality and Standards of Products and Services, and Responsible Sourcing
3. Labor Practices and Human Rights
4. Occupational Health, Safety and Working Conditions
5. Community and Social Responsibility
6. Environmental Responsibility

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.

BDMS Supplier Selection and Evaluation

Supplier Selection

BDMS procures products and services from new and existing suppliers registered in the Approved Vendor List (AVL). All suppliers must undergo a selection and evaluation process based on the sustainability criteria in line with the BDMS Supplier Code of Conduct. Suppliers are excluded from contracting if they cannot achieve minimum ESG requirements within a set timeframe. Suppliers with better ESG performance are preferred by applying a minimum weight to ESG criteria in supplier selection and contract awarding. The suppliers are then categorized based on relevance using a supplier system related to BDMS business operations. When assessing the reference documents, BDMS evaluates by considering 2 factors:

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 45001:2018 or OHSAS 18001.

  Environmental Impact

  e.g., implementation of measures to reduce environmental impacts, certification of environmental management systems such as ISO 14001:2026 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.