Importance
Responsible supply chain management is an essential factor in the efficient delivery of goods from production processes to consumers. It can reduce risks such as cost risks, raw material and inventory shortage risk, and business interruption risk, which directly affects business operations and the Company’s image, as well as reducing the impact on stakeholders throughout the supply chain. Therefore, the Company has established management, from selecting potential business partners, providing an assessment and traceability, and covering diversity and equality, such as doing business with suppliers whose business owners are women and vulnerable communities, such as people with disabilities, as well as integrating sustainable development practices into business operations and taking into account social, environmental and corporate governance issues throughout the supply chain to increase opportunities, reduce risks and enhance the competitiveness of the business, and strengthen sustainable business partnerships and alliances.
Currently, digital technology plays a vital role in the operations of the Sri Trang Group, particularly in procurement. The Group has systematically adapted its workflows and applied technology to improve the transparency, agility, and responsiveness of supply chain management. Procurement has implemented digital analytics tools, such as Power BI, to forecast demand, manage inventory, and closely monitor delivery status, thereby mitigating inventory risks—particularly slow-moving and dead stock items. The Company places great emphasis on using accurate data and comprehensive risk analysis to support strategic decision-making, promote sustainability throughout the supply chain, and manage low-turnover inventory through internal transfers or inter-company transactions to optimize resource utilization, reduce waste, and support cost-effective and sustainable operations.
In 2025, the Sri Trang Group established procurement policies and operational directions to support sustainable business growth. A new centralized procurement platform is planned for implementation across the Group to increase efficiency, reduce redundancies, and standardize operations. The Company also reinforces the importance of adherence to the Supplier Code of Conduct and conducts educational activities for suppliers under the Sustainability Partnership initiative to enhance understanding of ESG principles, which are critical to sustainable business operations. Developing supplier capabilities is considered essential for enabling all stakeholders to grow together sustainably.
Furthermore, the Company actively promotes and supports suppliers in preparing for new environmental regulations and greenhouse gas reduction trends, enhancing business resilience, competitiveness, and jointly building a long-term sustainable supply chain. In line with its risk management strategy, the Company has made its supply chain operations more flexible and adaptive, accepting certain risks while focusing on building a resilient and disruption-resistant supply chain. By leveraging supply chain visibility, unnecessary risks and missed opportunities can be avoided. For example, virtual online supply chain management is coordinated with partners to comprehensively plan the entire process—from raw material sourcing to delivery to customers and end consumers.
Business Value Chain
The Company places importance on participatory interaction with stakeholders throughout the value chain of business operations from upstream to downstream for the purpose of mutual sustainable growth as follows:
Support process
Research and development are utilized in terms of enhancing product quality, increasing energy efficiency, managing and increasing the value of waste, as well as applying technology and artificial intelligence to develop every operational process in order to increase work efficiency and reduce costs.
General Purchasing
The Company has set the purchasing policy of Sri Trang Group to conform with the social responsibility policy and strictly adheres to the business code of conduct regarding trading partners and competitors to prevent monopoly, unfair competition and corruption, and to generate new sellers by establishing working guidelines for the organization and selecting running the business with partners who are socially responsible, such as green procurement, buy energy-saving equipment, have a non-child labor force, no forced labor or slave labor, no violation of human rights, fair employment, and common care of the environment as well as promoting knowledge and understanding for partners to be socially responsible. In the systems of ISO9001, ISO 14001, ISO 45001, and BSCI Code of Conduct, there is a supplier assessment covering social and environmental aspects while working in the Company’s area and annual evaluations.
The Company prepared a Business Partner Code of Conduct and Guidelines to promote business partners to conduct business in a sustainable manner and in accordance with the Company’s business practices. The Company refers to the charter and standards recognized internationally, such as the International Labor Organization (ILO) and the United Nations World Agreement (UN Global Compact).
Supplier Code of Conduct
Sri Trang Agro-Industry Public Company Limited
Download Sustainable procurement process
Supplier Assessment
The company assesses of risks that may arise from suppliers, the Company groups significant suppliers that may affect the organization’s operations to enable proper management. The Company has categorized suppliers by dividing significant suppliers based on the following criteria:
- Be suppliers with high trading volume (divided by business partner group).
- Be suppliers distributing raw materials and products and providing key services to the Company’s business operating processes.
- Be suppliers with a small number of partners in the future.
Based on the criteria, the procurement department has significant suppliers are divided into two main groups: Goods and Services. In the selection of partners, various issues related to Economic and Governance, Social, and Environmental (ESG) dimensions have been integrated into the partner management guidelines, focusing on transparency and accountability through the following processes:
Supplier
Screening
Supplier Risk Assessment and
Critical Identification
The Company has established criteria for assessing the critical suppliers and ESG risks, with the aim of categorizing suppliers based on their risks. These criteria take into account the characteristics of products and services provided by suppliers, as well as the analysis of procurement costs for each group of goods and services. Additionally, classification criteria for suppliers have been set up to ensure appropriate management of suppliers. The criteria for suppliers can be divided into the following types:
- Tier 1 suppliers are suppliers who produce or provide services directly to the Company.
- Non-Tier 1 Suppliers are suppliers who produce or provide services to the Tier 1 suppliers.
- Significant Tier 1 Suppliers are critical suppliers who produce or directly provide services to the Company.
- Significant Non-Tier 1 Suppliers are critical suppliers who produce or directly provide services to the critical Tier 1 Suppliers.
Supplier Environmental,
Social and Governance Audit (ESG Audit)
Relationship Building
and Supplier Development
For transparency in the procurement system, the Company has an internal audit system and an assessment of risks likely arising from corruption. If non-transparency or corruption is found, the Company will proceed with disciplinary action against that employee under the Company’s regulations, and that trading partner or supplier will be blacklisted.
Target and Performance
Results of supplier management in 2025
Supplier Development
The Company prioritizes education, potential development, and upgrading trading partners’ production and service capabilities to meet standards, as well as encouraging social responsibility, clarification, and oversight of suppliers’ respect for human rights, fair treatment of their workers, and social and environmental responsibility.
The Company provides communication, annual contractor training, study visits, partner meetings, and annual supplier assessments to provide advice, collaborate to solve problems, improve the quality of raw materials to meet the Company’s requirements, and monitor and evaluate trading partners to jointly develop sustainable business operations.
The implementation of the B2P system in the procurement process
The procurement and accounting department have jointly developed the project using the B2P system in the procurement process, utilizing Blockchain to increase work efficiency by bringing documents in procurement into the system such as PO, GR, Invoice, and Payment to reduce work time for relevant departments and reduce manual processes. Major changes to the implementation of the B2P system include:
- Receiving purchase orders: via the B2P system
- Invoice/Debit Note/Credit Note: Seller creates a document on the B2P system.
- Receiving Payment: Receive weekly payments via bank transfer from the SCB.
- Check the billing situation: The seller checks the status via the B2P website.
- Dashboard: The seller checks information, invoice, and payment status from the system and uses the Dashboard for an overview.
The project has been in operation since 2022 with 74 partners and has continued in 2025 with 112 partners participating in the project. It is geared toward digital transactions and development of automated processes to increase capabilities and reduce operating costs between the Company and its trading partners.
It can reduce the working time of employees in PO communication to suppliers, data entry, and invoice scanning by approximately 20% of the work process. This results in increased productivity. For the business partners of the Company, they directly benefit from the new billing process through the B2P system, which can create invoices in the system in real time and check the payment situation according to the payment schedule, including dashboard usage to see an overview.
Development and Enhancement of Business Partners' Capabilities Towards Sustainability
In 2025, the Procurement, Quality, and Corporate Sustainability departments conducted on-site assessments of key suppliers twice a year, in May and December.
According to the evaluation plan, the company successfully conducted evaluations for all three companies, achieving 42.86% completion. The departments involved in the evaluations were the Procurement Department, Quality Department, and Corporate Sustainability Development Department. The evaluations included sending STA.PU.FO.08.011-a011222: External Provider Audit Checklist/Questionnaires to the companies for self-assessment in advance. The evaluation results indicated that all three companies met the assessment criteria.
In addition, in 2025, the factory continued to experiment with and improve the use of grade-B plastic, maintaining product quality and meeting the organization’s requirements while ensuring that production processes align with sustainable development principles. When implemented in the future, these products are expected to enhance operational efficiency and further develop the competitiveness of business partners, enabling them to grow alongside the Group.
Example of Partner Development from Evaluation
Environmental issues have become increasingly critical. Natural crises such as global warming, air pollution, solid waste, biodiversity loss, deforestation, and natural disasters are intensifying. To demonstrate its commitment to driving sustainability and the principles of the Circular Economy, the Sri Trang Group has worked to reduce waste and create added value from plastic residues. The Group has continuously explored ways to reuse grade-B plastic from its suppliers, amounting to approximately 1,508 tons in 2025.
In addition, in 2025, the factory received customer feedback regarding the durability quality of packaging. In response, the Group’s critical packaging suppliers began developing and selecting raw materials for the production of products for the Group. They coordinated with key indirect business partners (Critical Non-tier 1 Suppliers) to experiment with and improve product quality to meet organizational requirements. These efforts also ensured that production processes align with sustainable development principles. Once implemented, these products are expected to enhance operational efficiency and further develop the competitiveness of business partners, enabling them to grow alongside the Group.
Natural Rubber Raw Materials Procurement
The Company also focuses on procuring natural rubber raw materials under the principles of fair trade, transparency, clear principles, and verifiability, supporting farmers to produce quality rubber free from impurities and properly store the rubber in order to obtain quality rubber that the factory requires, as well as promoting rubber farmers to have knowledge and understanding in doing the rubber business correctly according to academic principles. This will increase the productivity of rubber farmers, which will lead to additional income and sustainably improve the quality of life and livelihood of rubber farmers.
In natural rubber procurement, which is the main raw material in the Company's production process,
the Company has prepared a Sustainable Natural Rubber Procurement Policy to serve as a practical guideline for natural rubber suppliers to conduct business sustainably, the same as the Company, as well as to prevent risks and impacts to the business, and to build confidence among rubber customers. The Company has reviewed policy to be consistent with the Global Platform for Sustainable Natural Rubber (GPSNR) Policy Framework which covers guidelines for natural rubber suppliers on the following issues:
| Sustainable Natural Rubber Procurement Policy | ||
|---|---|---|
| Governance and Economic | Dimension Environmental | Dimension Social Dimension |
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Sustainable Natural Rubber Procurement Policy
The Company shall continue to communicate and monitor compliance with the Sustainable Natural Rubber Procurement Policy for natural rubber suppliers in order to assess operational risks of natural rubber suppliers in the supply chain and continue to improve and develop operations with natural rubber suppliers to be in line with the policy.
Business development through digital innovation
“Sri Trang Friends” application, Sri Trang Friends Station Rubber Purchasing Program, and the Super Driver rubber transport services
The Company has created a business ecosystem, Sri Trang Ecosystem, which is traceable from the destination to the source of raw materials, it can be used to assess social and environmental risks in the sustainable management of rubber plantations. Additionally, it serves as preparation for certification in accordance with the policy of being a member of the Global Platform for Sustainable Natural Rubber (GPSNR) through the use of the applications “Sri Trang Friends” and “Sri Trang Friends Station”.
The Sri Trang Friends application is considered an application that has revolutionized the Thai rubber industry to create rubber purchasing standards that are transparent, verifiable, equitable and fair to all sellers of rubber raw materials. There is also the development of new functionalities that can always meet the needs of rubber farmers and all rubber sellers it is considered the establishment of a stable and friendly business ecosystem in accordance with the vision of the application that aims to be the ultimate tool to raise the quality in every dimension of the lives of farmers and people to connect amiably with each other and meet every need in a sustainable way and foster revenue growth while creating a sustainable and better society.
The Company has developed the Sri Trang Friends application for rubber farmers, offering a wide range of useful features for users. These include displaying historical price graphs, registering as a rubber seller, posting rubber offers, scheduling rubber deliveries, checking past transaction histories, accessing articles and knowledge about rubber, monitoring weather conditions, participating in campaigns, activities, and games, as well as collecting Friends Points to redeem rewards or discounts at partner stores. The application meets the needs of rubber farmers and traders, resulting in over 152,696 registered accounts in 2025, comprising rubber farmers, rubber traders, and stakeholders in the Thai rubber industry.
The Company still plans for cooperation with business partners in various fields, to continuously develop functions and expand new services in accordance with the slogan of the application. “One app completes all services for fellow rubber farmers".
In addition, the Sri Trang Group also has the "Sri Trang Friends Station" application that supports use in 2 main services:
- Sri Trang Friends Station rubber purchasing program It serves as a tool for generating standardized invoices and receipts, which all rubber buyers can use for purchasing rubber within their own shops or businesses. It can also be used to record income and expenses within the shop. This helps promote the adoption of standardized, reliable, and transparent practices in rubber purchasing within the Thai rubber industry.
- Super Driver service is a service that facilitates rubber farmers who wish to sell their rubber directly to the factories and purchasing centers of the Sri Trang Group but face difficulties due to transportation or long distances, making it inconvenient to deliver the rubber themselves. Interested users can conduct rubber sales through the Sri Trang Friends of Farmers application and request the Super Driver service to pick up rubber from their plantations and deliver it to the factory or purchasing centers. This service not only provides convenience for farmers but also creates new career opportunities and additional income for rubber farmers and pickup truck owners by transporting rubber from plantations to the factory.
In 2025, the Company had a network of 588 Super Drivers covering 34 provinces. They played a key role in picking up and delivering rubber from 2,157 rubber farmers nationwide and generated additional income of over THB 10,988,700 for the Super Drivers. The total value of rubber transactions between the Company and smallholder farmers including transactions with and without the use of Super Driver services—amounted to THB 1,683 million.
Both applications can be downloaded from the App Store and Play Store and interested persons may also find details at www.sritrangfriends.com or make inquiries for further information or apply for the services at Line@SRITRANGFRIENDS or Facebook “Sri Trang Friends” or phone 02-217-4522.
Project to Promote Rubber Purchases from smallholder farmers
In addition to developing the Sri Trang Friends of Farmers and Sri Trang Friends Station applications, the Company has implemented a policy to purchase rubber from smallholder farmers to provide them with more selling options. Farmers can either deliver the rubber themselves or request the Super Driver service to pick up rubber from their plantations and deliver it to the factory. The factory has also added water-turning points and small scales to facilitate and accommodate rubber brought in by smallholder farmers.
Performance from 2023–2025
- Number of smallholder farmers: 16,180; Super Drivers utilized: 3,629
- Total revenue for Super Drivers: over THB 23.37 million
- Revenue for smallholders: THB 372.55 million
Raw Material Suppliers and Rubber Farmers Development
Based on the Green Procurement approach that focuses on the procurement of clean rubber raw materials and giving importance to sustainability for natural rubber business partners. The Company encourages rubber raw material suppliers, cooperatives and rubber farmers to conduct business with environmental and social responsibility by providing knowledge and understanding of sustainable rubber business and the production of quality rubber along with reducing the impact on the environment and society. The Company operates through the “Ruam Jai Tham Yang Thai Yangyuen project” by emphasizing the production of clean, safe, and environmentally friendly natural rubber to promote collaboration with farmers and business partners in elevating production and transportation standards, reducing impacts on communities and the environment, and supporting the sustainable career development of rubber plantation farmers across all dimensions. The project covers operations throughout the Northeastern, Northern, Eastern, and Southern regions."
In addition to aforementioned project, the procurement department and quality inspection department will visit rubber plantation farmers who are raw material suppliers to provide knowledge along with communicating the characteristics of rubber wanted and unwanted by the factory, including the impact of poor-quality rubber or unwanted by the factory. This annual operation is conducted under the Sri Trang Friends of Farmers Project. For more information, please refer to “Participation to Development Social and Communities".
Additionally, the company has promoted the project 'Sri Trang Meets Friends of Farmers Nationwide,' organized by the Digital Product Development department. The promotional content includes educating on the production of high-quality rubber cup lumps, introducing GPS-tagged rubber, recommending the Super Driver rubber cup lump transportation service, suggesting options for selling rubber, and introducing the Sri Trang Friends of Farmers application for selling rubber.
Credit Term with Suppliers
The Company places importance on assigning credit to each supplier to ensure sustainable growth in collaboration with partners within the supply chain, delivery of standardized products on time and business ethics. The credit terms should reflect both the creditworthiness and liquidity management capability of the Company and suppliers. Generally, the credit term of the Company with suppliers are within 30 days.
| Credit Term | Average Credit Term in 2025 |
|---|---|
| 30 Day | 26 Day |