Customer Health and Safety
Importance
Given the current COVID-19 pandemic, as well as stakeholders' expectations of the business sector's responsibility to provide healthy products and safe service, in addition to the nature of OR's business that has direct contact with customers and consumers, both in the oil business and retail business covering the ever expanding food and beverage business, OR is committed to maintaining the quality and safety of its products and services in accordance with international standards, laws, and regulations from regulatory agencies to show responsibility and genuine care for customers and consumers because the safety of customers and consumers is of utmost importance to OR’s business operations.
Management Approach
OR is committed to creating a business approach with the concept of Living Community that focuses on health and safety for customers and consumers who purchase products and use services under the OR brand, both in the oil business and retail business. This is especially important in the situation of the COVID-19 pandemic, which has continued for more than 2 years, creating a New Normal. Therefore, OR has adjusted its business operations in accordance with the behavior of customers and consumers. The details of the changes are as follows.
The oil business
PTT Station
PTT Station's marketing strategy is to create happiness and peace of mind for commuters. PTT stations also aim to help its customers, branding itself as “Good for the heart”. In order to do so, PTT stations promote safety standards for customers. This includes the design and construction of the PTT Station, which is guaranteed to be safe and in accordance with the law. The construction features a Friendly Design and caters to customers of all genders, ages and all physical conditions, especially the elderly, the handicapped and women, such as installing handrails in the bathroom, designating safe parking spots, building wheelchair ramps, providing special parking for women and people with disabilities, installing an emergency alarm button, installing CCTV to secure the area, and providing a well-lit service point to prevent danger, etc. In addition, there are signs installed in the PTT Station area to educate users about safety during refueling (such as “Smoking will cause sparks.” sign, “Turn off the engine while refueling” sign and signs prohibiting the use of mobile phones, etc.). PTT stations also install at least one fire extinguishing equipment per fuel dispenser, which is considered more than the criteria specified by the safety standard. In addition, PTT stations regularly provide training to PTT Station staff for emergency response. Another evidence that OR attaches great importance to safety is the establishment of the PTT Service Station Standard to communicate PTT Station safety management standards with dealers and those in charge of managing PTT Stations. The standard management is overseen by OR to ensure strict compliance.
Quality assessment of PTT Stations nationwide
OR requires the development of an audit system for the quality of service of the PTT Station on a regular basis. At present, PTT Stations have adopted the Quality Management System (QMS) quality inspection technology to develop the audits and help facilitate recording various information accurately and quickly through a mobile application. The audit report is sent to PTT Station management and related departments in the form of monthly reports. The assessment contains four parts as follows:
1) Condition of PTT Station service area and environment
2) Service
3) Toilets
4) Supplementary businesses
Auditors visit the PTT Stations to assess each PTT Station based on the audit criteria according to the PTT Station Standard Assessment Manual. There are 2 assessment teams as follows:
• The Mobile Audit team is the PTT Station audit team who performs the monthly audit. If there is an issue or an event that needs improvement, the Mobile Audit team will communicate the issue, details, along with photos attached, so that the PTT Station can take further corrective actions and make improvements.
• The Mystery Shopper team is an assessment of PTT Station by a third party to inspect the quality and service anonymously, covering PTT Stations operated by OR, dealers, or PTT Retail Business Management Co., Ltd. (PTTRM).
In addition to the audit, the Mobile Audit team also provides monthly training to employees within PTT Stations and FIT Auto automotive service, covering all positions such as managers, service center technicians, and staff at PTT Stations to enable them to provide standardized service and operate in emergency situations and situations that will affect the security and safety by adhering to the guidelines in the emergency operation manual and dialogue guide to always achieve the same operational standards.
PTT LPG cooking gas
The PTT LPG cooking gas business is another business that OR takes great pride in. It has been accepted by consumers for over 33 years regarding quality products and outstanding safety. This makes PTT cooking gas a leader in the LPG market. Furthermore, PTT has always been number one in the country's market share. In 2021, OR has adjusted its marketing promotion model to become more modern and accessible to more consumers.
However, OR recognizes that LPG can be dangerous due to its flammable properties that could result in explosions or fires. Therefore, to ensure that OR's customers are safe while using the product, OR focuses on providing product knowledge training to partners and customers and performing emergency drill plans for the customers at the LPG filling plant and LPG service stations regularly, as well as increasing the safety standards of cooking gas cylinders, which are made of steel that is thicker than the required standard in order to ensure the cylinders withstands pressure very well. The material has been certified by the Thai Industrial Standards Institute (TISI). Every cylinder must pass the standard 6 step quality control and safety measures before being delivered to consumers as follows:
1) Inspect the condition of the cylinder to determine whether it meets the safety standards. There must be a TIS mark stamped on the cooking gas cylinder. If a cooking gas cylinder is found to not meet the standards, it will be sorted for maintenance or destruction.
2) Clean the cylinders that have already passed the standard LPG cylinder condition inspection.
3) While filling the gas cylinder, the gas weight must be controlled according to the size of the cyliinder.
4) In the weighing process, if the weight is lacking or exceeds the specified standard, the cylinder is taken back to the filling station to be refilled and re-weighed. This ensures that every cylinder has a standard LPG content.
5) Inspect the cylinder for leaks by testing the flue gas cylinder, valves, and valve threads. If a leak is found, the cylinder will be sorted out immediately.
6) Inspect the valves and seals. The inspection of the tightness of the seals is the final step before delivering the cylinder to the shop for further delivery to the consumer.
Cooking gas cylinders that have reached the age of 5 years from the month/year of the last test will be put to the Hydrostatic Test process to re-test for leaks. Cylinders that have reached the age of 10 years will be put to the Expansion Test process to determine the expansion rate of the gas cylinder at the specified pressure according to the industrial product standard regarding the use and maintenance of liquefied petroleum gas cylinders (TIS 151). The valves of the cylinder must also undergo a safety testing process. Valves that are less than 10 years old will be tested for leakage and safety relief. Valves that are damaged or older than 10 years will be destroyed to ensure that consumers use the safest cooking gas cylinders.
Cooking gas cylinders that have been tested will go into the process of repainting, valve assembly, weighing, logo weight and expiry date labelling, as well as another leakage test. There is a quality control system for every step to ensure that every gas cylinder is in perfect condition and meets safety standards before it can enter the gas filling process. The part of the gas cylinder that did not pass the test and cannot be repaired will be destroyed. This prevents the refilling of cylinders that do not meet the safety standards.
OR has integrated the safety innovation “Check Lock Valve System” according to TIS 915-2562 standard regarding valves for liquefied petroleum gas cylinders, with a tongue design for the flue gas cylinder to prevent gas leakage and fires during transportation and consumer use.
The lubricant business
The safe operation of OR's lubricant business covers raw material procurement, production, packaging, warehousing, product transportation, loss prevention from emergencies, crisis, potential occupational injuries and illnesses to employees and stakeholders, as well as improving the working environment to promote good quality of life for workers. OR focuses on health and safety throughout the supply chain through analysis and a development plan to reduce potential risks. The details are as follows.
1) Preparation of operation manuals for FIT Auto automotive service in accordance with the Service Standard and the Operation Standard, both in the form of a booklet and an online format so that employees can study conveniently and offer training to FIT Auto automotive service technicians in order to operate and service customers according to the safety standard.
2) Installation of fire extinguishers at specified points, along with various warning signs to increase safety for customers of the FIT Auto automotive service.
3) Quality control of vehicle inspection services at FIT Auto automotive service to ensure the safety of the vehicles brought in for service. In 2021, OR did not receive any reports on violations of health and safety regulations that came from the products.
4) Occupational Health and Safety Management and Safety Data Sheet according to GHS (Globally Harmonized Systems of Classification and Labelling of Chemicals) for all lubricants.
5) Feature a chemical hazard symbol (Diamond Sign) on the packaging. For products sold to industrial customers, such as 1,000 litre and 200 litre lubricants, all products are labelled with hazard warnings and precautions, based on the Global Harmonized System (GHS), a system for generating Safety Data Sheets (SDS). In addition, Safety Data Sheets (SDS) for all products are published on the PTT Lubricants website (https://pttlubricants.pttor.com/) containing information on hazards, first aid measures, and management measures in the event of a substance spill. In 2021, no incidents of violation of product and service label information and requirements were found. No incidents of marketing communication violations or exaggerated advertising about goods and services for lubricant products were found.
6) Set standards and procedures for safety operations regarding the transportation services of lubricant products to end customers (such as industrial customers).
Measures to prevent the spread of COVID-19
The Oil business has set measures to prevent the spread of COVID-19 in all areas of operation, in strict accordance with the requirements of the Ministry of Health with the following measures:
1. Take care of consumers of the PTT Station service with “Measure. Distance. Fast.” measures.
Measure – Take the temperature of the staff before commencing work. Take the temperature of customers who patronize various stores.
Distance– Provide space for social distancing for all services, such as the cashier. Provide payment via QR Code, wireless credit card machines, and arrange social distancing guides in the area.
Fast – All services must be fast. Staff can serve and refuel a vehicle in about 4 minutes. Ask for cooperation to limit the amount of time in the station to 1 hour for each customer. Arrange for the service yard staff to clean equipment in front of the oil service yard every 1-2 hours. Arrange for the cleaning personnel to clean every risk point that has been touched in the bathroom every 1-2 hours, and clean bathrooms, walkways and walls every 6 hours.
2. Develop new forms of payment to reduce contact between customers and service staff, such as QR Code Payment and switch the Blue Connect Application payment to QR Code payment and EDC Mobile.
3. Promote and encourage all employees in the operating area and all oil delivery staff to get vaccinated against COVID-19.
The retail business
From the customer trend of healthy food and beverages, along with producing food and beverages that meet safety standards, Café Amazon’s strategy is to maintain food and beverage safety standards that meet the requirements of the Consumer Protection Board. Café Amazon also promotes continuous invention and development of products and services related to the health and safety of customers and communicates such standards to Café Amazon branches, both domestically and internationally, as well as monitors strict compliance with regulations.
Café Amazon Roasting Plant is certified FSSC 22000, which is a food safety management system standard that is globally recognized for food product inspection and certification for food safety.
Café Amazon places importance on providing information about the nutritional value and safety of its products. Therefore, Café Amazon complies with product labeling standards in accordance with the requirements in “Announcement of the Food and Drug Administration Re: Clarifications to the Announcement of the Ministry of Public Health Re: Labeling of Food in Containers (No. 3) and (No. 4)” on goods and products in the food and beverage group. In 2021, there have been no incidents of breach of information requirements or product and service labels, and violations of marketing communication or exaggerated advertising about Café Amazon’s goods and services.
Traceability
OR places great importance to product safety throughout its value chain with a traceability system to ensure that through the entire process, from raw material procurement, production, to distribution, can maintain the quality of the product for the health and safety of consumers. The Café Amazon store has applied quality management system practices by focusing on product quality control from the acquisition of raw materials to the delivery of products to customers. For the selection process of suppliers who deliver raw materials such as coffee beans, beverage powder and milk, etc., the production site and product quality are assessed. However, the production process must be certified according to the standards of each product group, including the ability to produce and deliver products to maintain quality in accordance with the requirements in the Terms of Reference (TOR).
In addition, as for the main raw material of Café Amazon business, namely coffee beans, OR has emphasized on selecting quality coffee beans, with 3 requirements as follows:
Requirement 1: the source of raw coffee beans: The raw coffee beans purchased by the Café Amazon business as raw materials for roasting coffee beans must be grown in Thailand. All sellers must specify the coffee growing location, type of coffee, production season, processing method, and the weight of the coffee beans delivered on every sack. Prior to purchasing raw coffee beans, Café Amazon will require sellers to test the raw coffee beans for contaminations of Ochratoxin A, which is a pesticide residue, at a reputable organization's laboratory. The results of each toxic substance test must not exceed the standard specified by the Ministry of Agriculture and Cooperatives. Sellers must present the results of the Ochratoxin A contamination test before shipping the coffee beans to the Café Amazon business for consideration.
Requirement 2: the physical examination of the bean quality: The coffee beans must be put through a humidity test and an inspection for defects. The beans must also be inspected for the correct taste that meets the standards set by the Café Amazon business.
Requirement 3: inspection of all vendors' raw coffee beans storage locations: The suppliers are also subject to random inspections of the coffee farm to help guide the seller to make improvements to meet the standards set by the Café Amazon business. The transport vehicle is also inspected for signs of damage that will affect the quality of the raw coffee beans being transported, such as the use of canvas to cover the product, tear marks, pests and vector animals, and other defects. If found to be non-compliant with the specified standards, the Café Amazon business will immediately refuse to accept said coffee beans.
OR emphasizes traceability of the product quality from the source and inspects the product from the distribution center to ensure that the products are of good quality and suitable to be delivered to consumers. If found that the product is not of quality due to the procurement of raw materials or the distribution of goods, OR will conduct a preliminary inspection at the point of fault and take corrective action immediately. If the faulty product is the main product that affects the distribution to consumers and affects all sectors of the company, OR and the manufacturer will consider a recall of the whole faulty lot, and collaborate with the manufacturer to take corrective actions to improve production and solve all problems.
Furthermore, the Café Amazon business has also collaborated with the Royal Project. (Research and Development Project on Coffee Planting and Production, Natural Resources Conservation System for Sustainable Development) to research coffee varieties and develop a coffee growing system under shade trees, along with the conservation of natural resources. In addition, Café Amazon has also collaborated with Sarnpalung Social Enterprise Co., Ltd., a company that operates PTT Group's social business projects, to develop quality coffee cultivation alongside knowledge of community enterprises and coffee farmers. This cooperation has one important objective, which is to enable traceability in the planting process and production process, in accordance with standards. At the same time, the project also develops the knowledge of Thai farmers to give consumers the highest confidence in the quality and safety of the products.
Development of products and services that take into account the health and safety of consumers
With OR's nationwide retail network, OR sees an opportunity to develop health-targeted products, which is a market that is continuously expanding today. Therefore, guidelines for the development of health products, developing processes, and management that always take into account the health and safety of consumers have been established. This is especially important for beverages and products sold in the Café Amazon branches, including all kinds of snacks products. Only quality products will be selected based on the quality and safety standards of the Food and Drug Administration (FDA).
Health-targeted products
Café Amazon has developed a variety of healthy products with unique tastes as follows
1) Café Amazon offers Light Menus, which are beverages that has a reduced sugar content. These drinks use honey, which gives natural sweetness, and whole milk, which is nutritious, instead of sweetened condensed milk. Café Amazon features 3 light menu beverages out of the 42 beverages on the menu, which amounts to 7%. These beverages include Light Coffee Honey, Black Tea Honey, and Matcha Honey.
2) Café Amazon reduces the amount of sugar in the sugar sachet provided at the branches to 4 grams by working with the Food and Drug Administration (FDA). Café Amazon is the first coffee shop in Thailand to initiate a sugar reduction initiative to encourage consumers to reduce the sweetness when adding sugar packets to their drinks.
3) Café Amazon develops recipes for beverages with reduced under the concept of "Sweetness Scale." in collaboration with the Ministry of Public Health to encourage Thai people to consume less sugar and give consumers the right to choose the level of sweetness in every menu. There is also a plan to research and develop products that have low sugar levels but still taste good.
4) Café Amazon develops plant based menus or healthy drinks that use plant-based ingredients, such as purple potatoes and oats.
Providing a secure service and measures to prevent the spread of COVID-19
OR attaches great importance to the safety of food and beverage preparation for service in Café Amazon by setting hygiene standards for food and beverage preparation and communicating with branches through the Café Amazon Franchise System Guide to Operations to ensure that all branches are operating in accordance with laws, sanitary requirements, and standards. There is a training course for food handlers featuring content provided by the Ministry of Health according to the 2018 ministerial regulations concerning the hygiene of food retail businesses. This training is continuously available for operators and staff at Café Amazon branches across the country. However, employees of all branches must attend this training course with government agencies or organized by the Café Amazon business team.
As part of the measures to prevent the spread of the COVID-19 virus, Café Amazon has required all employees working in the roastery and branches to strictly comply with OR and government regulations. This includes suppliers who will deliver coffee to the roastery. Measures include screening by taking body temperature, providing hand sanitizer gel, wearing a mask at all times, etc. In addition, proactive examinations are also held for employees in the operating area using ATK test kits on a regular basis.
Quality and Safety Assessment of Café Amazon
Café Amazon regularly improves the quality and standards of the store audit. Currently, the company implements technology for the audit through a mobile application, similar to the PTT Station QMS system, which facilitates the recording, processing and delivery of results in a quick and accurate manner. The audit report is sent to the Café Amazon management and related agencies in the form of monthly reports which feature non-conformances. Furthermore, OR is also tracks and resolves issues, provide on-the-job training, supervises the branches to ensure conformity with the franchise agreement, as well as resolves complaints from customers through the customer relationship channel at the Customer Contact Center 1365 to ensure that all branches can operate in accordance with the standards set by OR and that customers will receive quality products and services. There are currently 4 types of quality inspections at Café Amazon branches as follows:
1) Standard Audit (Quality Services Cleanliness; QSC) conducted by the OR audit and quality control team to evaluate the operation and service of both branches in PTT Stations and standalone branches, on a monthly basis, according to OR’s standards and requirements. This audit covers all branches nationwide. The assessment criteria are divided into 3 parts as follows:
Part 1 Beverage and other products’ quality standards
Part 2 Employees and service
Part 3 Cleanliness and maintenance of the store
In the event that an issue that needs improvement is found, OR will notify the Executive of Café Amazon by reporting on the results of the audit and any issues requiring improvement through various channels, such as e-mail, letter, sales district manager, or inviting the store managers to discuss and make plans for improvements, etc. to ensure that the operations are in accordance with the standards set by the company.
2) Mystery Audit conducted by the OR audit and quality control team to randomly inspect the designated targeted stores anonymously. The mystery audit focuses on inspecting the service standards and the quality of the branch's products to ensure consistency, to supervise franchisees in the development of service and quality standards, as well as to resolve complaints in a timely and efficient manner based on information received from various channels, such as the Standard Audit, Mystery Shopper, and complaints from the Ordering & Customer Relations Center 1365. The audit is performed according to the following criteria:
• Branches with excellent Standard Audit scores (99 - 100 percent)
• Branches with failing Standard Audit scores (score < 80 percent)
• Branches with lower service scores from the Mystery Shopper
• Branches that receive urgent complaints from consumers, etc.
• Ad hoc audits according to various policies set by OR
3) Operation Audit is an audit of branches that are Company Owned and Company Operated (COCO) covering Financial Audit, Cash Audit, Stock & Inventory Audit, Loss Control, and various control policies as specified by OR. Branches that are privately owned and managed or franchises will be audited and advised regarding further development.
4) Mystery Shopper is conducted by a third-party auditor, employing external companies to inspect and evaluate the branches at least 3 times per year. For 2021, the passing score has been set at 75 percent. Currently, the Café Amazon business currently uses Mystery Shopper points as part of its annual best branch evaluation program and the annual service excellence contest. This is combined with the Standard Audit score. The score affects the consideration of branch expansion and renewal of the franchise agreement.
In terms of receiving feedback from consumers about OR products and services and other issues, OR has established a complaint channel where consumers can comment and leave suggestions via Ordering & Customer Relations Center at tel.1365 and through social media 24 hours a day. When OR receives comments and feedback from consumers, the company will immediately investigate, correct and communicate corrective and preventive measures to show sincerity in responding to complaints and build confidence for consumers or complainants to restore trust in OR products and services.