Stronger SME links ‘key’ to sustainability

Large corporations must strengthen their partnerships with small and medium enterprises, the key links in the Thai supply chain, through knowledge sharing in a drive to achieve sustainability, according to the Thailand Supply Chain Network (TSCN).
A sustainability mindset must be adopted in practice throughout the value chain to efficiently sustain a better future for humanity and the planet, said Tongjai Thanachanan, head of sustainability and strategy at the Thai Beverage Plc and a TSCN member.
Large corporations must also emphasise the contributions of their suppliers as well as the way they operate, Ms Tongjai said during a panel discussion on Friday  at the ThaiBev Quarter in Bangkok.
“Large companies may always control the standard of their products, but many times, they fail to oversee their suppliers, who are crucial links in the value chain,” she said.
She said Thailand had learned several lessons about how the weakest links in the value chain can affect the whole country’s economy and its journey towards sustainability.
She cited situations in which international customers used to reject seafood and poultry from Thailand due to a failure to comply with global sustainability standards and agreements on production supply chains.
Among the problematic issues were unsustainable practices in subcontractors’ operations, which in 2019 led the country to be placed on the European Union’s yellow card list, with an official warning issued to trading partners failing to battle illegal, unreported and unregulated (IUU) fishing.
“Just one link being broken could destroy the whole value chain,” she said.
Surasit Sirisomphop, the deputy managing director of Srithai Superware Plc, said training representatives from large corporations should share knowledge of sustainability with smaller businesses.
He referred to the lessons imparted during the Trainers session at the recent Sustainability Expo 2024 at the Queen Sirikit National Convention Center.
“It is very important for everyone in the industry to move forward to a sustainable future together without leaving anyone behind,” he said.
“Sharing knowledge is not difficult — the real challenge is enforcing such an understanding in their practices,” he said.
According to Orathai Poonsap, ThaiBev Plc senior vice-president and chief supply chain manager, approximately 60% of the company’s main suppliers were found to have limited capacity to reflect or even understand the concept of sustainability.
She said it is necessary not just to strengthen this capacity but also to practise sustainability.
“Stronger supply chains contribute to the stability of major corporates on the road towards a sustainable future,” stressed Ms Orathai.