31 / 116
Sustainability at Towngas 31
We have undertaken further measures to ensure
the scope of our supply chain management
approach covers as much of our business as
possible. Previously, we conducted a climate
change country-based risk assessment for different
inventory items. We have also extended our supply
chain management measures in mainland China.
To ensure our mainland suppliers meet all our
environmental, social and governance criteria, our
mainland procurement team conducts regular CSR
and Code of Practice audits. In 2016, we revisited
seven JVs to assess their procurement workflow
and checked for any deviations from standard
practices.
“6S” is a proven workplace management tool
that “Safety” is incorporated into the basis of the
traditional “5S” – Seiri, Seiton, Seiso, Seiketsu
and Shitsuke, in which effectively manage the
"people, equipment, material, compliance and
environment".
Towngas has established 6S implementation
guidelines, promoted 6S best practices and
shared our 6S experiences to our JVs’ colleagues
through training workshops. We plan to audit
suppliers for their 6S adoption and award those
who have performed outstandingly.
Other Practices
Supplier Profile by Geographical Location
(Hong Kong Business)
Hong Kong
87.4%
Mainland
China
3.1%
Others
9.5%
Case study
Since 2015, Towngas has promoted Total Quality Management among our mainland operation
suppliers by selecting those to have implemented 6S management in the best way.
The first 6S management assessment of suppliers was completed in September 2016. The
assessment covered the production site, laboratory, warehouse, integrated management, and
approximately a year’s worth of quality performance data. Out of 28 suppliers that took part in
this stringent test, eight were selected for their outstanding performance. Currently, more than
80% of our suppliers are committed to applying 6S management.
With 6S management, both the on-site management of suppliers and product quality were
enhanced significantly. Priority will now be given to outstanding suppliers during procurement.
Promoting “6S Applications” among our Suppliers