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
|
suppliers of finished goods |
copper, iron, and stainless steel coils
|
14
|
16.86%
|
 Contractors
|
outsourced manufacturers and suppliers of semi-finished goods/parts | stamping, zinc alloy plating, copper forging, powder metallurgy, grinding, electroplating etc. |
172
|
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 evaluate new suppliers rigorously on four aspects including production management, quality management, technology, and employment term, and ask them to observe the ethical guidelines, workers' rights and duties, health and safety standards, and environmental protection requirements mentioned in Taiwan Fu Hsing's "Statement of Social and Environmental Responsibilities." In 2022, the Company screened 100% of new suppliers using the worker guidelines, and 7 managed to pass the evaluation and completed the signing of "Statement of Social and Environmental Responsibilities for Business Partners."
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. A total of 6 supplier social and environmental responsibility audits were conducted in 2022, and all of which were found to have met the required standards.
