ESG Report 2021

12 The traditional supply chain model is the supply chain model from raw materials to customers, which is a human-centric model rather than an environmental-centric model. The economic consideration is much higher than the environmental consideration. Under the traditional supply chain model, a green supply chain model has emerged, i.e. achieving the entire product life cycle, and pursuing the minimum pollution and value recovery from the production perspective of forward and reverse logistics. Sustainable supply chain management further integrates energy and efficiency issues in system operation and environmental consideration. In this system, energy and substances are considered to be reusable, and the environment and energy can be transformed together to realise the combination of positive and reverse logistics, internal and external resources, and realise the recycling and reuse of all input raw materials and the transformation of waste. A I divided the sustainable supply management into three parts: 1. Information resources sharing. Information is the backbone of modern competition. The supply chain management adopts modern technology methods, and uses the optimal distribution channel to enable rapid and accurate information transmission, so as to achieve resource sharing between suppliers and enterprises. 2. Improving service quality and expanding customer needs. In the supply chain management, we focus on the concept of “customer-oriented”. Most of the customers prefer shorter the lead time for provision of products and services. For this purpose, the supply chain management greatly shortens the circulation cycle of products and accelerates the speed of logistics and distribution through the overall collaboration among the production enterprises, external and process enterprises, so that the personalised needs of customers can be satisfied in the shortest time. 3. Achieving a win-win situation. Supply chain management connects suppliers, distributors and retailers along the supply chain, and optimises the supply chain, so that all relevant enterprises have formed an integrated network. In this network, all enterprises still maintain their individual characteristics. However, they maximise the joint cooperation for overall benefit and achieve win-win results. Q A From Procurement Department of Inner Mongolia Company Mr. Zhang Lei Environmental, Social and Governance Report 2021 The United Laboratories International Holdings Limited What is sustainable supply chain management? From Investor Relations Department of the Group Ms. Xiang Wen Xin