Supply Chain Management
Goal and Performance Highlights
Performance 2024
The Company continuously monitors and evaluates its supply chain operations annually. Insights gathered are used to support quality improvement planning and proactively mitigate supply chain risks, with the goal of optimizing operational efficiency and resource utilization. In 2024, key performance outcomes were as follows:
Commitment, Challenge and Opportunity
The Company is committed to managing its supply chain with efficiency to enhance competitiveness and control costs, while simultaneously developing projects that prioritize sustainability. Procurement and supply chain management are carried out under the principles of good governance, emphasizing the use of environmentally friendly materials, promoting energy efficiency, supporting labor and human rights standards, and preventing fraud and corruption at every stage of the process.
However, supply chain management in the real estate sector faces numerous challenges, including rapidly changing economic conditions, fluctuating construction material costs, increasingly stringent legal and building standards, and the need for greater collaboration with suppliers and contractors to fully comply with environmental, social, and governance (ESG) standards. These factors can directly impact project timelines and overall development success.
At the same time, strengthening sustainable supply chain management creates opportunities for the Company to reduce long-term costs, increase operational efficiency, and establish competitive differentiation. It also reinforces the Company’s image as a socially and environmentally responsible property developer, while meeting the expectations of stakeholders.
Management and Operational Approach
Supplier Code of Conduct
The Company adheres to the principles of conducting business with transparency, integrity, ethics, legality, and good corporate governance, along with a commitment to promote the quality of society and the environment in accordance with the Sustainable Development Policy and the Company’s business operation plan. In this regard, the Company has disseminated the Supplier Code of Conduct on the Company’s website, www.noblehome.com, to inform all the Company’s suppliers.
- Business Ethics
- Integrity, honesty, and ethical conduct
- Anti-corruption and anti-bribery
- Conflict of interest management
- Intellectual property rights
- Confidentiality and data protection
- Supply chain management
- Shared sustainable growth
- Social Responsibility
- Human Rights
- Labor Rights
- Wages and Privileges
- Occupational Health and Safety
- Environmental Responsibility
- Compliance with Environmental Laws and Regulations
- Operate Environmentally Friendly Businesses and Use Resources Effectively
- Monitoring and Audits
The Company conducts random inspections at least once a year, or more frequently if complaints are received from stakeholders, to ensure compliance with applicable laws and internal regulations.
In addition, the Company monitors suppliers’ compliance with its Business Code of Conduct through a self-assessment process. All new suppliers are required to acknowledge and sign the Company’s Supplier Code of Conduct. The Code has also been published on the Company’s website www.noblehome.com to ensure that all suppliers are aware of the standards expected.
New Selection and Existing Supplier Policy
The Company has a policy for selecting new and existing business partners to collaborate with the Company, adhering to the principles of ethics, society, and the environment (ESG) in all 5 aspects, which include:
Transparency Consider selecting suppliers fairly, transparently, and accountably.
Accountability Consider and select suppliers who are socially and environmentally responsible.
Equity Provide opportunities for suppliers to bid equally and fairly.
Ethic Consider selecting suppliers with good work ethics and code of conduct.
Honesty Employees must perform their duties with honesty, integrity and anti-corruption efforts.
The Company emphasizes sustainable supply chain management based on good governance and social and environmental responsibility to foster long-term growth with its suppliers. To support this, the Vendor Sustainability Assessment Survey (VAS) is used to preliminarily evaluate new and existing suppliers, integrating ESG criteria into the selection process to enhance the effectiveness of value chain management.
- Governance According to Good Governance Principles and Business Ethics
- Human Rights and Labor Management
- Occupational Health and Work Safety
- Environmental Management and Compliance with Relevant Laws
- Performance Monitoring and Report
- Initial Screening and Risk Assessment All suppliers undergo a preliminary risk assessment, including background checks and past performance reviews. Priority is given to reputable, reliable companies recognized for good corporate governance.
- Quotation Submission, Analysis, and Evaluation Suppliers must submit transparent and fair quotations through an open bidding process. The Company evaluates proposals by comparing them to market benchmarks, while also assessing the supplier’s capabilities and reliability. Fair negotiation opportunities are provided.
- Sustainability Performance Assessment Suppliers are assessed on sustainability dimensions, economic, social, and environmental measures to ensure alignment with the Company’s sustainability policy and long-term goals.
- Performance Monitoring and Reporting Following selection and collaboration, the Company continuously monitors supplier performance and prepares evaluation reports for consideration in future engagements.
The Company has established clear criteria for selecting new and existing suppliers, incorporating Environmental, Social, Economic, and Governance (ESG) principles into the evaluation process. Selection begins with a Value Score assessment of the screen supplier qualifications, including operational capacity, product and service quality, and the ability to provide environmentally friendly solutions. The Company compares key aspects such as quality management systems, environmental practices, human rights and labor standards, and conducts on-site audits to ensure production processes comply with the Company’s standards prior to the bidding phase.
Additionally, upon project completion, the Company evaluates supplier performance in collaboration with project teams, focusing on product and service quality, compliance with defined standards, and pricing fairness. This approach encourages suppliers to operate responsibly and in alignment with the Company’s sustainability policy.
Economics & Governance
Suppliers are expected to operate with integrity, honesty, and full accountability. They must apply their full capabilities to ensure timely delivery and quality of work, including the use of standardized materials, machinery, and skilled labor in construction.
Social
Suppliers must employ legally compliant labor, maintain safety systems to prevent workplace accidents, and establish effective emergency response procedures.
Environment
Suppliers are required to comply with applicable environmental laws and regulations, minimize air, noise, and vibration pollution, treat wastewater before discharge, and use environmentally friendly construction materials.
Identification of Critical Suppliers
In pursuing sustainable business practices, the Company recognizes the importance of its supply chain, which directly impacts product quality, delivery timelines, cost efficiency, and overall competitiveness. Identifying and managing critical suppliers is a key strategy for reducing risks, improving efficiency, and promoting sustainability across the value chain.
The Company has established clear criteria for supplier classification to enable effective supply chain management:
Suppliers who engage directly with the Company, with an annual procurement value exceeding THB 50 million, and whose products or services are difficult to substitute due to specialized expertise, technology, quality, or lead time.
Indirect suppliers with high transaction value with the Company’s Tier 1 suppliers. These suppliers play an essential role in construction quality and continuity, for example, manufacturers or distributors of key materials such as concrete, steel, or prefabricated structures.
Direct suppliers with moderate procurement value or lower-risk engagements. Although they work directly with the Company, their contracts typically involve lower financial exposure or operational risk.
The Company’s procurement department oversees the supplier identification process, with an expanded sourcing approach that promotes diversity, enhances competitiveness in pricing and quality, and supports the selection of environmentally friendly products. This strategy not only mitigates supplier-related risks but also strengthens sustainability across procurement activities. In 2024, the Company completed the identification of Critical Tier 1 and Tier 1 Suppliers and is in the process of collecting data on Critical Non-Tier 1 Suppliers to support ongoing supply chain risk management.
Summary Table of Reviewed and Identified Critical Suppliers
| Supplier | Number of Suppliers |
|---|---|
| Total Suppliers in 2024 | 1,209 |
| Critical Tier 1 Supplier | 20 |
| Tier 1 Supplier | 1,009 |
Supply Chain Risk Management
The Company has established a schedule for evaluating key partners, and partners with ESG-related risks will undergo regular On-Site Visits at least every 2 years. The Company places great importance on control, including the assessment of partners to ensure the procurement of quality products and services. Partners are required to adhere to best practices in economics, society, and environment.
- Supplier Categorization: Suppliers are sorted according to the category of goods which they operate.
- Supplier Risk Assessment: A risk assessment form has been prepared for suppliers. The assessment guidelines include the governance, social, environmental, and ethical aspects. The assessment is divided into two phases: the pre-construction phase and the construction phase.
- Supplier Risk Management: Suppliers are graded according to the assessment of value score criteria. The analysis of the assessment is divided into two phases, which are summarized as follows:
- Pre-Construction Phase: To selecting suppliers to bid for the job, only Grade A and Grade B suppliers are eligible to bid to prevent risks.
- Construction Phase: Follow up with the suppliers who won the bidding to determine whether they can proceed. If the suppliers receive a grade lower than Grade B, they may not be considered for future projects.
- The designated group: of partners with high-risk profiles, or those requiring On-Site ESG Audits, are the partners scoring less than 80% in the risk assessment.
The Company identifies supplier risks based on Environmental, Social, Economic, and Governance (ESG) factors, in line with international standards for assessing business responsibility and transparency. Sustainable business practices are a key driver of long-term competitive advantage and risk mitigation. Managing supplier risks through an ESG lens not only helps reduce the likelihood of legal, environmental, and social issues but also enhances supply chain resilience, strengthens investor confidence, and supports long-term business sustainability. As such, the Company places strong emphasis on supplier risk assessment and management to ensure responsible and efficient operations for all stakeholders.
| Risk | Risk Factors |
|---|---|
| Economic and Corporate Governance Risks |
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| Environmental Risks |
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| Social Risks |
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The Company requires an on-site ESG audit for high-risk critical suppliers and those with elevated sustainability risks. These audits are conducted by the Noble Care team in collaboration with the Project Development Department to assess suppliers’ performance in alignment with ESG standards. The evaluation process includes the following steps:
- Preparation
- Suppliers prepare the required documents for the audit.
- Audit Process
- Reviewing relevant documents
- Interviewing the supplier to assess operational practices
- Conducting a site visit to the supplier’s facilities
- Audit Report
- Summarizing audit scores
- Reporting non-conformities with a Corrective Action Request (CAR)
- Providing recommendations for improvement and development
- Follow-up Audit
- Reviewing corrective action documents (Off-site Audit)
- Conducting on-site visits to verify implementation (On-site Audit)
In 2024, the Company conducted ESG risk assessments of its suppliers, covering economic, governance, environmental, and social dimensions. No suppliers were identified as high-risk. The Company also assessed potential economic risks arising from supplier operations, including macroeconomic conditions, supplier liquidity and debt levels, construction material cost fluctuations, and over-reliance on a limited number of vendors. No suppliers were found to pose significant economic risk during the year. Nevertheless, the Company continues to actively monitor and manage supplier risks to enhance the long-term resilience, stability, and sustainability of its supply chain.
Credit Term for Suppliers
The Company is committed to conducting fair and sustainable business practices with its suppliers. As such, standard Terms of Payment are set at an average of 30 days after complete delivery of materials in accordance with the specified quantity and quality, and upon acceptance by the personnel responsible. Payments are made based on the terms outlined in the TOR and contract, counted from the date the invoice and all required documents are received. The Company reserves the right to process payments only for transactions with approved PR/PO issued prior to procurement. In 2024, the Company maintained an actual average payment period of 30 days, in full compliance with its policy, with no late payments recorded.
Stakeholders Directly Impacted
Executives & Employees
Customers
Community & Society
Government Agencies
Investors & Shareholders
Suppliers & Contractors
Creditors
