Pan International: It Takes Collaboration to Achieve Big Success!

Sustainable Procurement
Mr. Setha Thavisri, Acting Managing Director of Pan International (Thailand) Company Limited, revealed that his company was established in 1972 or 52 years ago. Initially, it was an importer that imported products for distribution in the Thai market. However, it has later evolved into the integrated and centralized procurement company for Thai Beverage Group.

“We were appointed the group’s procurement company about 20 years ago. With the appointment, we have been responsible for procuring products and services for about 170 companies. We focus on providing comprehensive group procurement shared service with cost efficiency that is achieved based on good governance and enhanced sustainable procurement capabilities. Our mission is to source excellent services and products at both local and international levels, using knowledge, expertise, and the highest professional standards.

“Apart from good prices and good quality, we have also paid attention to sustainability. In carrying out our mission, we have worked with vendors to guide them towards the same goals in regard to net zero emissions and Scope 3 GHG Emissions Reduction.”

Although Pan International’s role is not directly related to production, the company has attached significant importance to Other Indirect Emissions. This type of emissions accounts for the highest percentage of carbon footprint, which determines greenhouse gas emissions from upstream to downstream. In other words, emissions are calculated even during procurement, product transportation, business trips, and waste management. This principle applies to organizations that neither directly control nor own activities emitting greenhouse gases.

“Five key sustainability topics in supply chain management are: 1) Climate Change; 2) Water Management; 3) Human Rights; 4. Occupational Health and Safety, and 5) Business Ethics. We have applied all these five topics into our 1) Supplier Screening; 2) Supplier Assessment, and 3) Supplier Development,” Mr. Setha said.

ESG and Supply Chain Management
ESG has crucial importance where suppliers are concerned. To highlight the importance, Pan International has held the Business Partner Award contest to encourage suppliers to present projects that help with greenhouse gas emissions reduction and resource efficiency.

“We have held the contest for eight years already. In the beginning, we sought to develop our suppliers’ ability to deliver quality products on time only. But recognizing the importance of sustainability, we have now used sustainability as a criterion. We would like to develop our suppliers, making them aware of where their raw materials come from, the ones used to produce products they have sent to us. Are resources properly used? Are a lot of resources wasted? We believe our contest is a key initiative in our supplier development,” Mr. Setha said.

“We have also paid due attention to sustainability-related certificates. We demand to see certifications because we expect their products to be socially and environmentally responsible.

“We have sourced packaging from suppliers who have shared our sustainability focus and cared for society. They, for example, legally hire workers, uphold ethics, and embrace transparency. They do not take advantage of the public in any aspect.

“Our procurement of paper packaging requires a type of sustainability-related certification, which guarantees its production process seeks to reduce the use of resources. Our paper packaging comes with a certificate issued by FSC (Forest Stewardship Council). When consumers see the FSC symbol, they know our packaging is produced in accordance with sustainability practices. The packaging definitely does not engage in deforestation. Aside, an FSC-certified product is recyclable, thus supporting maximum resource efficiency.”

FSC advocates responsible forest management. It grants its symbol just to packaging that meets its international standard and whose supply chain has already been audited. Only packaging using resources from manmade commercial forest plantations is eligible to apply for an FSC certificate.