Overview
Suppliers are our important business partners that support our sustainable business operation. In general, our suppliers can be classified into four major categories, including raw material suppliers, contractors, equipment suppliers, and service providers.
| Type | Product Category | Major Poducts | Quantity | Dominance (Percentage of transaction sum) |
|---|---|---|---|---|
 Raw Materials
|
Supplier of raw materials for finished products |
copper, iron, and stainless steel coils
|
14
|
19%
|
 Contractors
|
Copper, Iron, Stainless Steel Coil | Stamping, zinc alloy, copper forging, powder metallurgy, grinding, plating, etc. |
204
|
81.32%
|
Supply Chain Sustainability
Through close coordination between procurement, technology, and quality assurance departments, we have developed a number of systems such as "New Supplier Evaluation," "Supplier Rating," and "AEO Assessment" that enable us to review and offer improvement suggestions with respect to transaction optimization. We have also developed our own ESG guidelines for supplier management, and would exchange knowledge with suppliers on material social and environmental issues from time to time in an attempt to promote decent business practices. Overall, we at Taiwan Fu Hsing invite suppliers to join us in the undertaking of corporate social responsibilities, and build a more competitive, safer, and more reliable supply chain together.
New Supplier Assessment
We rigorously evaluate new suppliers in four areas: production control, quality control, technology, and labor conditions, and we follow Taiwan Fu Hsing's “Statement of Social and Environmental Responsibility” to require new suppliers to jointly comply with the code of corporate ethics, labor rights and responsibilities, health and safety, and environmental protection, etc. In 2023, the percentage of new suppliers being screened using the Code of Labor Practices was 100%, and all of the seven new suppliers passed the evaluation, and 100% of them have signed the “Business Partner Social and Environmental Responsibility Statement”.
Social and Environmental Responsibility Assessment
Taiwan Fu Hsing takes the initiative to sign "Statement of Social and Environmental Responsibilities for Business Partners" with key suppliers. Today, 100% of suppliers have signed the statement, thereby enabling Taiwan Fu Hsing to exert influence as an industry leader in the promotion of social and workplace harmony. Suppliers in the medium- and high-risk groups are subjected to on-site audit on issues concerning labor, environmental practice, and ethics. In 2023, a total of 12 environmental audits of suppliers' SER were conducted, and the results of the audits all were in compliance with the required standards.
