ESG Report 2019

26 SUSTAINABLE SUPPLY CHAIN MANAGEMENT PRINCIPLES OF SUPPLY CHAIN MANAGEMENT The Group has been persistent in optimizing Group's procurement contracts will enumerate the supply chain system, procurement items such as quality requirements of goods, p r o c e s s , a n d s u p p l i e r d e v e l o pme n t , delivery standards, delivery terms, intellectual supervision, evaluation, and management. property rights, and integrity clauses to Through the implementation of material guarantee the quality of suppliers' supply and supplier management procedures, it maintains lower the legal and social risks of the supply a healthy and sustainable supply chain chain. system. In terms of contract management, the Superior supply chain management is the supply chain as a prerequisite for ensuring basis for production enterprises to maintain business operations, and it is also seen as a stable and efficient production. The United great opportunity to boost productivity. Laboratories sees sustainable operation of the Realm Relevant Laws and Regulations Good Manufacturing Practice for Pharmaceutical Products Measures for the Supervision over and Administration of Pharmaceutical Production Contract Law of the People's Republic of China Measures for the Supervision and Administration of Circulation of Pharmaceuticals Supply Chain The Group has established a vertical ingredients, and then delivers them to the integration of production and operation mode Group's other production sites for the of “pharmaceutical intermediates – bulk p r odu c t i on o f a c t i v e pha rma c eu t i c a l medicines – finished products”. Inner ingredients and preparation products, which Mongolia Company purchases major raw are finally sold to end users through various materials for the production of pharmaceutical channels. intermediates and active pharmaceutical PRODUCTION AND OPERATION MODE Raw Materials Bulk Medicine s Users Pharmaceutical Intermediates Finished Products Environmental, Social and Governance Report 2019 The United Laboratories International Holdings Limited