Supply Chain Management
BCH recognizes the challenges arising from the ongoing volatility in global economic and political conditions, which have affected product prices and caused supply chain delays.
The Company, therefore, places strong emphasis on prudent and flexible supply chain management, focusing on strategic procurement planning, optimal resource utilization, and effective cost reduction. BCH also continues to enhance its hospital management systems to ensure operational agility and resilience in adapting to changing circumstances. Furthermore, BCH upholds sustainable business practices in line with ESG principles to strengthen long-term stability, mitigate risks, and enhance competitiveness.
Goals
Key Operational Highlights 2024
BCH focuses on effective supply chain management by establishing guidelines for supplier selection
classification, and regular evaluation to ensure all suppliers operate in accordance with defined standards and contribute to the Company’s sustainable growth. In 2024, BCH assessed and identified Critical Tier 1 Suppliers, based on the contract value and purchase volume, categorized as follows:
Supplier Performance Evaluation
After procurement activities are carried out, the Company promotes adherence to its principles and policies among all supplier groups. Regular supplier evaluations are conducted to ensure that products and services meet quality and standard requirements. The assessment criteria include:
| Supplier Type Evaluated | Number of Suppliers |
|---|---|
| Critical Tier 1 Suppliers (Direct suppliers) | 35 |
| Critical Non-Tier 1 Suppliers (Indirect suppliers) | 38 |
In 2024, the Company had a total of 618 suppliers, all of whom were domestic suppliers, with no new suppliers added during the year. This outcome reflects the stability and continuity of the Company’s supply chain management.
| Supplier Type | Unit | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Percentage of spending on domestic suppliers | % | 100 | 100 | 100 |
| Supplier Classification | ||||
| Critical Tier 1 Suppliers | Number of Suppliers | 38 | 42 | 35 |
| % | 57 | 49 | 51 | |
| Critical Non-Tier 1 Suppliers | Number of Suppliers | 19 | 21 | 38 |
| % | 3 | 2 | 18 | |
| Other Suppliers | Number of Suppliers | 539 | 541 | 545 |
| % | 24 | 31 | 30 | |
Management and Operation Approach
Supplier Code of Conduct
BCH has established a Supplier Code of Conduct to enhance supply chain management based on Environmental, Social, and Governance (ESG) principles.
The Code covers six key areas: Business Ethics, Human Rights, Occupational Health and Safety, Environmental Management, Business Relationships, and Supply Chain Engagement aiming to promote transparency and shared sustainability.
Procurement Policy and Code of Conduct for Business Partners
BCH focuses on sustainable supply chain management by adhering to a strict code of conduct for business partners and promoting procurement practices that consider environmental impact, social responsibility, and good governance (ESG). This management approach encompasses the entire process from sourcing and selecting suppliers to quality control of goods and services, risk assessment and categorization of suppliers, and the monitoring, auditing, and evaluation of partners, as well as managing supplier relationships. These efforts aim to achieve sustainability and foster strong, long-term partnerships with the Company. In the Company’s procurement of goods and services, there are purchases related to medical and non-medical categories, which can be divided into the following three main groups:
Sustainable Supply Chain Management
BCH places great importance on building strong and sustainable business relationships with its partners, focusing on transparency, fairness, and ethical conduct to continuously enhance product and service quality standards while caring for the environment and society.
Supplier Selection
Before registration or contract signing, all suppliers must undergo an evaluation process based on the company’s established criteria. The selection emphasizes transparency, legal and fair labor practices, management standards, safety, human rights, and environmental responsibility. This ensures that all suppliers working with the company possess the necessary qualifications and capabilities. Approved suppliers are then recorded in the Approved Vendor List (AVL) system.
Policy on determining the repayment period for trade credit
BCH has a policy to set the trade credit payment period within the group at an average of 30-90 days. New suppliers are registered in the Company's procurement and accounting systems. For high-value medical equipment suppliers, payment terms may exceed 90 days, depending on the delivery and installation schedule,and are considered on a case-by-case basis in consultation with the supplier.
Payments are made according to the terms specified in the system or as mutually agreed upon with the supplier. The billing and cheque issuance cycle is scheduled on the 25th of each month, or the next business day if the 25th falls on a holiday. In 2024, BCH's average trade credit payment period was 33.6 days.
Partnership Engagement
BCH recognizes the crucial role of business partners within the supply chain and emphasizes operations aligned with ESG principles Environment, Social, and Governance to enhance procurement standards and comprehensive supplier management. In particular, the Company promotes environmentally friendly production and service processes, encourages energy and resource efficiency, and ensures quality control, safety, and transparency throughout operations.
These efforts not only elevate suppliers to meet international standards but also support the United Nations Sustainable Development Goals (SDGs) especially those related to sustainable consumption and production, environmental management, and circular economy development. This reflects BCH’s strong commitment to building a responsible and sustainable supply chain that creates shared value for all stakeholders.
In 2024, the Company’s procurement and supply chain management faced external factors affecting logistics and service continuity.
The tightening global economic and geopolitical conditions, along with volatile raw material prices, posed ongoing challenges. BCH remained committed to maintaining and improving the quality standards of its products and services by implementing proactive sourcing and procurement plans to ensure timely supply and delivery despite these external impacts. The Company also emphasized close communication and coordination with key suppliers to ensure uninterrupted product availability, while collaborating to develop alternative sourcing channels and substitute products. These measures aimed to ensure business continuity and minimize potential disruptions amid rapidly changing market conditions.
