Sustainable Supply Chain


Supply Chain

of critical suppliers assessed for ESG
Goal 2025
Maintain regular assessment of critical suppliers for ESG
Create economic opportunities for
local / small suppliers*
296                          450
*Suppliers of herb, cullet, and spare parts
Enhance the livelihoods of
local herbal farming suppliers
107                          500

Management Approach

The Company has encouraged Tier-1 suppliers to comply with the Supplier s Code of Conduct and ESG guideline manual. The manual is reviewed and updated annually in line with the changing ESG context. Every year, the Company communicates the Code of Conduct and Sustainability Manual, as well as on-site and online training to Tier-1 suppliers.

The Company focuses on efficient and ethical supply chain management by incorporating sustainability concerns into every step of the supplier search and selection process. ESG criteria are included in accordance with ISO20400 Sustainable Procurement standards, covering key issues of Supplier Screening. We will refrain from doing business with suppliers who fail to meet basic ESG criteria within a certain time frame. Our action plan includes assessing the sustainability risk of Tier 1 suppliers, categorizing them as Critical Tier 1 or High-Risk Tier 1, receiving third-party audits, implementing corrective/improvement actions, and training and developing skills for our employees through the Supplier ESG Program.

Osotspa Supplier Relationship Management

Osotspa collaborates with a wide range of suppliers, from multinational corporations to community enterprises and small and medium-sized enterprises (SMEs), to ensure high quality and reasonable pricing of raw materials and supplies for packaging and OEM production in order to achieve sustainability goals and manage supplier risk across the entire supply chain and help suppliers advance their innovations to maximize their potential and practice social and environmental responsibility

Supplier Relationship Management

The Osotspa Vendor Relationship Management (OSRM) program strengthens business relationships with key strategic vendors through collaboration on improving the quality of products, services, and innovations.
Training for both new and existing vendors to raise awareness and understanding of ESG, laws and regulations, and the Supplier Code of Conduct (SCoC).
Monitoring quality and ESG compliance at the operation sites of our strategic vendors.
Site visits and other activities to help our agricultural material vendors increase their potential.

Supplier Categorization

To enhance our sustainability strategy, Osotspa has adopted international guidelines for supplier categorization

Critical Suppliers

are those who account for more than 67% of the total purchase from total active suppliers. These include suppliers who passed the assessment and were added to the approved vendor list, strategic suppliers who participate in procurement planning or joint project initiatives, and exclusive suppliers who are difficult to be replaced

In 2022 Osotspa

conducted a risk assessment of surface
water and groundwater resources available at our suppliers’ operating areas. The evaluation
covered the following aspects

  • Quantity, Sufficiency and Quality
  • Local laws and pricing structures
  • Impacts on climate change and physical elements
  • Acknowledgement and understanding of surrounding communities

2022 - Performance highlights

Osotspa works with its partners to expand its business and explore new opportunities that are socially and environmentally responsible. We work with our partners to ensure sustainability is managed and capabilities are enlarged so as to create positive impacts together. These collaborations lead to our products being delivered to our customers in Thailand and around the world on time, in the right quantity, and at reasonable prices.

Sustainable Agriculture

The Company has committed to sourcing agricultural raw materials, the key raw materials in our manufacturing process, from sources that adhere to high standards and are environmentally and socially responsible.

Our Exposure to Agricultural Products
Purchase Volume (Tons)
Purchase Value Proportion
Juice concentrates, extracts, and others

Sustainable Herb Farming

Osotspa collaborates with many parties to address the challenges associated with sustainable agriculture. Together with the Herbal Products Division of the Food and Drug Administration under Thailand’s Ministry of Public Health and our suppliers, we launched the Sustainable Herb Procurement Project in 2020. The goal is to maintain a consistent supply of high-quality Thai herbs that are also environmentally friendly. This project not only helps Osotspa reduce risks in its supply chain, it also helps participating farmers gain access to markets, increase production capacity, and generate long-term income.

2022 - Activity highlights

Osotspa collaborates with National Science and Technology Development Agency (NSTDA) to visit herbal management for learning and improving the quality of herbs and support small farmers to enter the sustainable industry system.

Osotspa is committed to conducting business in tandem with sustainable development in order to improve people s quality of life. We develop a policy to create economic opportunities for our small business partners and sustainable sourcing of herbal ingredients.

Osotspa and our supplier, Kui Lim Hung Corporation Co. Ltd., met with NSTDA executives to discuss the status of the project "Elevating the Quality of Life in the Thung Kula Rong Hai Area Through Science, Technology, and Innovation: Medicinal Plants” The entire process follows the quality system standards of GMP, GHP, HACPP, ISO2200 of Kui Lim Hung Corporation Co. Ltd.. We have received support from various organizations to train farmers in the Thung Kula Rong Hai area about sustainable development, including efficient water and soil resource management, chemical management, herb cultivation management in a safe agricultural

Sustainable Cullet Sourcing

Osotspa places a high value on packaging production, just as it does on high-quality beverage production. Today, the majority of our sales are beverages in sealed glass bottles. The primary material used in the packaging manufacturing process is cullet, or shattered glass, which can help with cost optimization and risk reduction in the supply chain.To reduce raw material supply risk, we have developed sustainable cullet sourcing since 2020 by expanding our collaboration with both large and small cullet providers.

We aim to increase the capacity of recycling centers reduce the amount of waste from used glass bottles in Thailand and support independent waste collectors and recyclers (Saleng) through a system that incentivizes supplying Osotspa with cullet Furthermore, the Company shall expand partnerships to a broader range of small to medium-sized local partners. This is to help us achieve our goals in accordance with the circular economy and ensure an inclusive supply chain that leaves no one behind.

The Sustainable Procurement Journey (ISO 20400)

Osotspa is committed to extending performance sustainability throughout its supply chain to be consistent with the Company’s vision of “The Power to Enhance Life” for consumers and society. To align with international standards, Mr. Viwat Krisdhasima, Chief Supply Chain and Digital Officer, led the adoption of the of Sustainable Procurement - Guidance ISO 20400:2017 for the supply chain operation system at Osotspa. We also support the sustainable operations of our suppliers by collaborating with SGS (Thailand) Limited in the “Journey of Sustainable Procurement ISO 20400” program, under which assessments will be conducted for the certification submission scheduled for 2023.

Capacity Building Program for Suppliers

Osotspa Organized a Meeting on Sustainable Practices for Business Partners to Increase Efficiency and Mutual Growth

PDF Download

Procurement Policy.pdf
Supplier Code of Conduct .pdf
Sustainable Agriculture Commitment.pdf