Supply Chain Management

The Company has formulated the “Supplier Evaluation Method”, “Supplier Performance Evaluation Method”, and “Supplier Social Corporate Responsibility Code of Conduct” to establish the supplier screening requirements for environmental protection, human rights, safety, health, and sustainable development. The requirements and expectations for suppliers in the aspects of environmental safety and health risks, prohibition of child labor, labor management, basic rights of non-hazardous labor, code of ethical conducts and ethical corporate management. Through supplier selection, audit, performance evaluation, the requirements of sustainability are implemented and collaborated in the daily supply chain management.

 

• New Supplier Evaluation Process

The new supplier evaluation team is composed of the Quality Assurance Department, Production Management Department, Testing Engineering Department, and Packaging Engineering Department. Only the suppliers passing the evaluation and review by the evaluation team can be registered in the AVL List of Qualified Suppliers. ANPEC suppliers are divided into two types: wafer suppliers and packaging and testing suppliers, where the suppliers who are ISO9001 and ISO14001 certified are preferred.

 

• Annual Supplier Review

ANPEC conducts annual on-site or written assessments for qualified suppliers. Those who fail the evaluation must improve within a time limit and apply to ANPEC for review. The supplier qualification will be disqualified if the review is not approved. In addition to quality management, design process management, document records, warehouse inspection, etc., the evaluation also includes green product management and environmental, social, and governance review. In 2022, a total of 11 annual supplier evaluations were conducted, and 9 of them have passed the evaluation.

 

• Supplier Performance Rating

The supplier evaluation team is composed of the Quality Assurance Department, the Production Management Department, and the relevant Engineering Departments. The evaluation items include quality, delivery time, price, engineering ability, etc. where the qualified suppliers are evaluated quarterly. Notify the supplier of the quarterly evaluation results and distribute it to the Production Management Department as a reference for placing orders.
 
 

• Supply Chain Management Implementation

The Company's suppliers are 100% in line with the following conditions :
 

SUPPLIER EVALUATION	All new suppliers must pass the evaluation conducted by the system and comply with the Code of Conduct of Corporate Social Responsibility for Suppliers.
	All suppliers must obtain the certifications of ISO9001 quality management system and ISO14001 environmental management system certifications.
	All suppliers must sign the Letter of Guarantee for Non-Use of Prohibited/Restricted Substances, fill out the Environmental Management Substance Control Specification Table, and sign the Supplier Self-Declaration Form.
SUPPLIER APPRAISAL	For qualified outsourcing vendors, supplier appraisal is implemented by the Quality Assurance Department, Production Management Department, and engineering departments every quarter.
SUPPLIER AUDITING	For qualified outsourcing vendors, ad hoc system evaluations are arranged every year.