Supplier Management
Supplier Management
FAVITE views suppliers as key partners and is committed to building long-term relationships with them to create a stable and sustainable supply chain. In addition to ensuring product quality, we encourage our suppliers to implement environmental protection measures, improve safety and health standards, and fulfill their corporate social responsibilities. We also work with our suppliers to manage risks and develop business continuity plans.
二、Specific Practices
The relationship between a company and its suppliers is one of mutual cooperation, growth, and sustainability. The selection of suppliers is a critical factor in the success and cost control of a company. Our company has established a supplier management process with detailed procedures and standards for the selection, management, and evaluation of new suppliers.
- Supplier Selection
Procurement and related departments, adhering to the principles of fair and open competition, jointly evaluate and conduct on-site audits of suppliers based on factors such as quality, price, technical capabilities, and delivery time. When necessary, sample production may be required to determine whether a supplier is qualified.
- Supplier Management
Upon becoming a qualified supplier, the supplier must sign a supplier data form and a supplier commitment letter, confirming their adherence to ethical codes and conduct before being registered in the system as an official qualified supplier. - Supplier Evaluation
Annual evaluations are primarily conducted for the top twenty suppliers. In addition, the improvement of suppliers with defective delivery quality is tracked and guidance is provided. Evaluation results are classified into five levels, each with corresponding actions.
| Level | Total Score (Full Score: 100 points) | Dispose |
|---|---|---|
| A | Above 90 (include) | May prioritize purchasing or increase purchasing volume. |
| B | Above 80 (include) | No reward or punishment, encourage them to develop towards A level target. |
| C | Above 70 (include) | Included in the counseling target, to be notified by procurement for improvement. If no improvement is made within the deadline, the qualified supplier status will be canceled after approval by the relevant authorized supervisor. |
| D | Below 70 (not included) | Qualified supplier qualification will be canceled. |
4. Annual Evaluation Results
According to the evaluation results in the 2024, the top 20 companies in terms of transaction value and important materials are all Class A companies.
三、Occupational Safety and Health
The company views suppliers as important partners and is committed to building long-term relationships with them to create a stable and sustainable supply chain. In addition to ensuring product quality, we urge suppliers to implement environmental protection measures, improve safety and health standards, and fulfill their corporate social responsibilities. We also work with our suppliers to manage risks and develop business continuity plans.
Regarding safety and health, the contract explicitly states that if a supplier does not comply with the Occupational Safety and Health Act or environmental protection laws and regulations, the company may require the supplier to make improvements within a specified time frame or impose penalties in accordance with the "Safety, Health, and Environmental Penalties." If the supplier fails to make improvements within the deadline or if an occupational accident or environmental pollution has occurred or is likely to occur, the company may require the supplier to cease operations until the hazards are completely eliminated.
For suppliers working on-site, the company conducts safety and health training courses, and suppliers are required to read and understand the company's equipment and operation hazard notices and precautions. After understanding the relevant regulations, they must sign a safety, health, and environmental commitment letter agreeing to strictly comply. Safety officers will conduct random inspections on-site, and those found in violation will be penalized in accordance with the "Safety, Health, and Environmental Penalties." No construction work may continue until deficiencies are corrected.
Equipment and operation hazard notices and precautions include:
- Personnel working at heights or using equipment must wear and properly use safety belts and helmets as required by the Occupational Safety and Health Act. Ladders may only be used for work and personnel are prohibited from standing on top of them or sitting, lying, or resting on the steps.
- For work above 2 meters on machines, equipment that can be safely ascended and descended should be used.
- When performing electrical work, circuit breakers should be locked or tagged with signs indicating "No Power Supply," "Power Off Work in Progress," or monitored by a supervisor and insulated protective equipment should be used.
- When performing hot work, appropriate fire extinguishing equipment, fire blankets, warning signs, or isolation equipment should be provided. If necessary, non-hot work personnel should be prevented from entering the area. Workers should be equipped with safety masks, safety glasses, and protective gloves and wear them properly.
- Warning signs, fences, and hanging signs should be used to mark the work area.
- Steel-toed safety shoes must be worn when working in the workplace.
- Cigarettes, betel nuts, and lighters are strictly prohibited in the factory area, and eating is not allowed in the workplace.
- Mobile phones with camera functions must have stickers attached before being brought into the factory. Those who remove the stickers themselves must delete the data from their phones.
四、Future Outlook
In response to the ESG governance concept, we have planned to introduce greenhouse gas inventories and focus on the concrete implementation of various requirements for suppliers in terms of environmental, social, and governance aspects.