Supplier, Competitor and Creditor IRPC strictly adheres to the principles of procurement with transparency and fairness. The company’s business relationships with its suppliers are based on mutual concern for social and environmental wellbeing of communities and the need to mitigate impacts, in accordance with good corporate governance principles. IRPC maintains close communication with its suppliers and collaborates with them to establish good practices, including campaign against offering or accepting bribery and to encourage them to join Collective Action Against Corruption (CAC) for SMEs, advocating human rights policy and encouraging key suppliers to participate in corporate governance promoting activities, like PTT Group CG Day, and Supplier Conference. Supplier IRPC and its subsidiaries underscore equal treatment and ethical conduct in mutually beneficial relationships with suppliers in strict compliance with the law and agreed-upon rules to move towards building a lasting partnership. In 2021, the procurement department applied digital technology for sustainable procurement management as part of the main strategies to continually develop the procurement system and its processes to meet the requirements of IRPC units in its procurement and interaction with external suppliers by improving efficiency and streaming the processes as follows: • Electronic “Zycus” (i-Supplier Module) which allows new suppliers to register and undergo screening whether they meet qualifications as suppliers, or for existing suppliers to edit and update their information, such as product information or description of services to keep them accurate, complete, and up to date. • Assessment of key suppliers through the Zycus system (iRisk module) in accordance with the ESG assessment dimensions to jointly develop sustainability across the supply chain in line with IRPC’s sustainability practices. • IRPC also prioritizes the supplier payment system. The company’s procurement department in collaboration with the accounting and finance departments together with banks, deployed a Blockchain network in financial-related activities, including IRPC Electronic Letter of Guarantee System or i-LGs, which is a system that suppliers can use to electronically instruct a bank to issue a letter of guarantee, without having to travel to the bank. The bank then issues a letter of guarantee and notify the company, thus significantly speeding up the entire process. IRPC’s i-LGs system is connected to 18 banks in Thailand. • Blockchain Solution for Procure-to-pay or B2P is a payment system for goods and services. The system, developed in cooperation with Siam Commercial Bank Public Company Limited and Digital Venture Company, receives e-invoices from suppliers for verification, checking them against purchase orders and goods receipts in an Automated 3-way Matching. Through this system, IRPC can electronically transfer money to the suppliers on the date such payments become due, instead of paying invoices with checks. Suppliers no longer have to travel to receive the checks at the company. The ins and outs of supplier network 206 IRPC PUBLIC COMPANY LIMITED 56-1 ONE REPORT 2021
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