92 INDORAMA VENTURES PCL. VISION - TO BE A WORLD-CLASS SUSTAINABLE CHEMICAL COMPANY MAKING GREAT PRODUCTS FOR SOCIETY. SUPPLY CHAIN MANAGEMENT IVL’s supply chain integrates sustainability as its core focus. We select and work with multinational industry leaders as our suppliers who believe in our strict ESG compliance and maintain their own effective policies, supported by robust mechanisms. In 2021, there were no instances of regulatory non-compliance by our suppliers. 1st PLACE IGNITING NETWORKS AWARDS 2021 FOR BAYER SUPPLIER DAY In acknowledgment of and gratitude for outstanding collaboration and team spirit, Bayer awarded IVL, the Igniting Networks Award 2021 which acknowledged our efforts in partnering together with suppliers to quickly secure essential supplies for Louisiana-based employees, their families and the surrounding communities in the aftermath of Hurricane Ida. As with most industries operating during the COVID-19 pandemic, we faced a number of obstacles within our supply chain. These included increased travel restrictions, congestion at seaports, labour shortages, and insufficient numbers of containers and vehicles for distribution. However, because our businesses span across continents, we could source local feedstocks from additional suppliersandmakemorespotpurchaseswhilecontinuing tomeet consumer demand in each region. Furthermore, operating in the same location as our customers assisted in decreasing transportation constraints. Inventory management was strictly controlled to ensure that manufacturing could continue. Additionally, logistics was optimized through one shipment to prevent loading and unloading time during product distribution. IMPACTS AND DISRUPTIONS FACED DURING COVID-19 Increased travel restrictions/ additional border checks resulting in delays Congestion at seaports with busy sea routes Labour shortages impacting productivity and land transport Low availability of containers and trucks Reduced outbound capacity from impacted countries resulted in an increase in prices Suppliers relying on force majeure clauses to excuse or delay performance Cost Efficiency • Production available in each region • Group integration • Co-location (with suppliers and customers) • Local raw materials sourcing Purchasing / Procurement • More suppliers • Spot purchase Inventory Management • Cycle stock • Safety stock • Lead time Transportation and Logistics • Direct shipment – reduce loading and unloading SUMMARY OF OUR COVID-19 SUPPLY CHAIN STRATEGIES North America South America Australia Europe Africa Asia Chief Strategy Officer Message Chairman of the ESG Council Message Key Achievements 2021 CEO Message IVL’s Sustainable Value Creation for Stakeholders Home
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