Supply Chain Management
Goal and Performance Highlights
Supporting the SDGs
Stakeholders Directly Impacted
Commitment and Targets
For the hospital business, the availability of essential medical supplies, medical equipment, goods, and supporting services is a key factor for the quality, safety, and continuity of medical service delivery. Sikarin Public Company Limited therefore places importance on managing the supply chain in a systematic, transparent, fair, and verifiable manner, with the aim of ensuring that procurement processes and supplier management are aligned with requirements related to quality, business ethics, human rights, the environment, and applicable laws.
The Company aims to make supply chain management part of risk management and good corporate governance by placing importance on the selection of qualified suppliers, assessment of their ability to deliver goods and services, monitoring of supplier quality and reliability, and consideration of environmental and social issues as appropriate to the nature of goods, services, and the risk level of suppliers. This is to support the hospital’s operations to be continuous, safe, and aligned with the expectations of service users, personnel, regulators, and all stakeholder groups.
In 2025, the Company had 973 suppliers and Tier-1 suppliers, of which 71 were significant Tier-1 suppliers, and 100% of its spending was with local suppliers in Thailand. In addition, 100% of new suppliers were screened using environmental and social criteria, and the Company assessed 294 Tier-1 suppliers over a three-year cycle, with no Tier-1 suppliers identified as high sustainability risk suppliers in that year.
These results reflect the Company’s continued efforts to strengthen supplier governance, sustainability risk screening and assessment, and the procurement of quality and verifiable goods and services. The Company will continue to develop its supplier information system, assessment processes, and supplier performance monitoring to be more comprehensive and appropriate to the context of the hospital business, in order to support responsible, transparent supply chain management that is aligned with the organization’s long-term sustainable development direction.
Challenges and Opportunities
Sikarin Public Company Limited faces significant challenges in managing the healthcare service supply chain, including the secure procurement of medical supplies, managing human rights risks, and minimizing environmental impact. Additionally, global standards such as JCI and GMP have introduced stricter requirements on quality and safety, while stakeholders increasingly expect transparency and equitable access to care. The Company responds to these challenges by collaborating with sustainability-minded partners, expanding its sourcing network to mitigate risks of supply shortages, and leveraging digital technologies such as AI and big data to optimize inventory and demand forecasting systems. The development of telemedicine and remote health services also helps ease hospital burden and improve the distribution of medical supplies.
The Company places strong emphasis on supply chain sustainability strategies as a means to differentiate itself competitively, reduce business risks, and generate long-term value for society, the environment, and the economy.
Management Approach and Value Creation
The Company manages its supply chain by linking it with corporate governance, risk management, internal control, procurement, and compliance with relevant laws and requirements, to ensure that the procurement of goods and services supports the hospital’s operations continuously, with quality, transparency, and accountability.
The Company places importance on supplier selection and assessment by considering the qualifications of goods and service providers, product quality, delivery capability, legal compliance, environmental and social requirements, as well as issues that may be related to business ethics and human rights. These actions help the Company reduce procurement risks and support suppliers in conducting business in a manner that aligns with the Company’s standards.
In terms of value creation, a responsible supply chain supports the continuity of medical services, reduces risks from shortages or procurement delays, increases confidence among personnel and service users, and supports more efficient hospital operations. It also helps extend sustainability practices to suppliers and other relevant parties in the value chain.
Supply Chain Strategy and Management
Sikarin Public Company Limited aims to manage its supply chain in alignment with the nature of the hospital business, with emphasis on procuring medical supplies, medical equipment, goods, and services that are of quality, meet standards, and can continuously support the delivery of medical services.
The Company considers supply chain risks in terms of quality, supply security, delivery capability, legal compliance, service safety, and relevant ESG issues, particularly among suppliers that are important to the hospital’s operations. These actions enable the Company to plan procurement and supplier monitoring appropriately according to the level of importance and risk of each category of goods and services.
In 2025, the Company continued to spend 100% with local suppliers in Thailand, supporting the domestic economy and facilitating continuity of supply in a context where the hospital business must provide services continuously and maintain readiness at all times.
Supplier Code of Conduct
The Company has established the Supplier Code of Conduct and related policies as an important framework for communicating expectations to suppliers and external service providers. The Company aims for business cooperation to be conducted with integrity, transparency, respect for the law, and consideration of impacts on stakeholders.
The key contents of the Supplier Code of Conduct and related practices cover business ethics, anti-corruption and anti-bribery, prevention of conflicts of interest, fair labor practices, respect for human rights, safety and occupational health, protection of relevant information, and reduction of environmental impacts.
The Company uses the Supplier Code of Conduct as one mechanism to encourage suppliers to understand and comply with the Company’s requirements, as well as laws and standards relevant to the goods and services supplied to the hospital. If any issues are found to be inconsistent with the requirements, the Company will consider monitoring, corrective actions, or appropriate approaches according to the nature and risk level of the issue.
Supplier Selection and Assessment
The Company selects and assesses suppliers by considering the quality of goods and services, delivery capability, supplier reliability, compliance with relevant laws and requirements, as well as environmental and social issues as appropriate to the nature of the goods and services.
In 2025, 100% of the Company’s new suppliers were screened using environmental criteria and 100% using social criteria. In addition, the Company assessed 294 Tier-1 suppliers over a three-year cycle, with no Tier-1 suppliers identified as high sustainability risk suppliers and no existing suppliers with high sustainability risks requiring corrective action plans in that year.
The Company also places importance on monitoring information, news, and issues that may be related to suppliers in order to support risk assessment and prudent procurement decision-making. These actions enable the Company to assess suppliers in terms of quality, continuity of supply, and alignment with relevant sustainability requirements.
Supply Chain Risk Management
The Company places importance on continuous supply chain risk management to support the availability of goods and services necessary for the hospital’s operations, particularly medical supplies, medical equipment, and supporting services related to quality of care and service continuity.
The risk management approach covers assessment of suppliers’ ability to deliver goods and services, monitoring of product quality, consideration of supplier readiness and reliability, consideration of risks related to legal and regulatory compliance, and monitoring of environmental and social issues as appropriate.
In 2025, supplier sustainability risk assessment data indicated that no Tier-1 suppliers were identified as high sustainability risk suppliers, and no suppliers were required to prepare corrective action plans due to high sustainability risk issues in that year. Nevertheless, the Company will continue to monitor and develop its supplier assessment processes so that supply chain risk management remains aligned with the operating context and changing stakeholder expectations.
Developing Collaboration with Suppliers
The Company aims to build relationships with suppliers based on transparency, fairness, and shared responsibility, with emphasis on communicating requirements, policies, and practices related to ethical business conduct, legal compliance, product and service quality, safety, human rights, and the environment.
In the Company’s context, developing collaboration with suppliers focuses on ensuring that suppliers understand the Company’s expectations through procurement, selection, assessment, and monitoring processes, so that business cooperation can support the quality of medical service delivery and reduce potential risks throughout the value chain.
The Company will continue to promote collaboration with suppliers by improving the quality of supplier information, the completeness of screening and assessment, and the communication of sustainability requirements in a clear manner that is appropriate to the risk level of each supplier group, in order to support the development of a responsible supply chain over the long term.
