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Supply Chain Management

Our company procures raw materials, equipment, technology, products, components, and services from around the world. We aim to promote the stability of the supply chain with sustainability at its core and establish long-term partnerships with suppliers. We also expect suppliers to adhere to the principles and relevant policies of this procurement and to promote them within their own supply chains. In order to ensure that the supply chain complies with basic environmental and social standards while providing high-quality, reliable deliveries at competitive prices, we implement the following strategies in supplier management: 1. Localization of procurement 2. Supplier risk identification 3. Regular evaluations 4. Policy advocacy.


Localized procurement

Internally establish a comprehensive supplier database system and conduct investigations into the sources of supplier materials, with the principle of local supply. Actively develop local suppliers to implement localized procurement, achieving timely and location-appropriate procurement, reducing transportation costs and greenhouse gas emissions during transportation, in order to achieve sustainable development and create local employment opportunities and economic development.

2024 procurement amount (equipment + raw materials)

Percentage of amount

89%

11%

100%

Number of suppliers

700

17

717

Percentage of suppliers

98%

2%

100%


Risk identification
Identify high-risk suppliers based on sustainability issues and monitor high-risk suppliers.

 

Risk identification.

2024 Annual Key Supplier Risk Assessment:

因子 A4 supply quality risk A6 supply delivery period risk A7 no backup risk B1 Financial Risk C1 natural disaster risk D1 Political Risk I1 Information Security Risks F1 social responsibility risks
等級 A B C A B C A B C A B C A B C A B C A B C A B C
Quantity 20 10 5 6 18 11 7 25 3 9 26 0 8 18 9 5 21 9 7 28 0 35 0 0


Evaluation Management
1. New Supplier Introduction:
When developing new suppliers, a new supplier investigation will be conducted, including reviewing written materials or on-site inspections to understand the supplier's production line and operational status.
 
2. Regular evaluation:
Each season, a review is conducted on major raw material suppliers regarding Quality, Cost, Delivery, Service, Management, and Technology to ensure that all aspects meet the internal requirements.
 
3. Evaluation and Reward/Punishment:
Suppliers with excellent performance will be publicly recognized at the contractor conference and included as priority procurement targets. If suppliers are still considered high-risk after regular evaluations and guidance, and fail to make improvements within the deadline, the frequency or amount of transactions will be reduced.

 


Policy advocacy and contract signing
 
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All suppliers are required to sign relevant contracts such as the "Statement of Compliance with the Code of Conduct" and the "Conflict Minerals Declaration" to eliminate any unfair, unjust, and discriminatory practices in procurement activities. Additionally, supplier policy advocacy will be conducted once every six months to communicate our requirements related to the supply chain to suppliers. The advocacy content includes compliance with the Responsible Business Alliance (RBA), ensuring that their business practices in labor, health and safety, environment, business ethics, and management systems meet all aspects, as well as our company's environmental and safety policies, integrity management code, information security policy, compliance with international environmental standards for relevant products, and reporting mechanisms.

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