Supplier Management

We recognize that transparent and stable supply network management is essential for sustainable growth. We categorize and manage suppliers into shipping agents, tug services, materials suppliers, and lashing services.
We define core suppliers in accordance to their shares, price competitiveness, financial soundness, and other factors. Currently Pan Ocean has 51 core suppliers.
POS SM encourages that suppliers comply with Pan Ocean’s environmental and ethical management rules and policies. They are asked to familiarize themselves with SHEQ through meetings and sign a written confirmation prior to commencing works onboard.

Supplier Selection and Evaluation

For supplier selection and evaluation, we use both quantitative and qualitative evaluation methods. To strengthen sustainable management in our supply chain, we endeavor to include both financial and non-financial elements in these evaluations. We see safety and health compliance as major considerations for supplier evaluations as much as sales, credit ratings, and other financial stability indicators.

POS SM has its own criteria to select suppliers, and tenders are open to the selected suppliers on the company’s IT system. Suppliers trading with the company are subject to renewal evaluations at least twice a year, based on which we adjust trade volume and issue warnings as needed.
To promote suppliers’ sustainability management, we plan to develop measures to help them comply with international standards and regulations concerning environment, safety, human rights, and ethics. In addition, we plan to provide incentives to encourage their active engagement and support for environmental management.