Supplier Management Policy

Supplier Management Policy

1.Supplier Management Strategies

1.Integrate resources

Create maximum competition.

2.Sustainable development

Together with suppliers, we attach importance to the sustainable development of economy, society and environment.

3.Workplace Safety

Pay attention to workplace safety and reduce occupational hazards.

4.Energy saving and carbon reduction

Promote circular issues of water conservation, energy conservation and carbon reduction.

5.Environmentally friendly

Reuse of resources, reduce environmental pollution, and promote an environment-friendly supply cycle.

6.Conflict minerals

Supply sources containing conflict minerals are not accepted.

7.Risk Management

Whether the energy supplier has implemented risk management in response to the impact of climate change.

8.Moral integrity

Business behavior must comply with the code of ethics, no bribery or other illegitimate benefits, and no acts that directly or indirectly violate the impartiality and professionalism of duties.

2.Evaluation of Supplier Sustainability Management Capability

The supplier policy of “Taking suppliers as partners and taking long-term cooperation as the benchmark policy”, plans supplier management methods, and conducts assessment and guidance based on the following criteria, hoping to establish a sustainable supply chain management mechanism.

1.Execution criteria: follow the company’s “Supplier Corporate Social Responsibility Assessment Operation”.

(1)Five aspects are assessed according to labor/occupational health and safety/environmental pollution/business ethics/management system.

(2)The evaluation objects are the top 20 suppliers, major suppliers and indirect suppliers.

2.Risk assessment

(1)Suppliers found to be missing during the assessment will be classified as A-level/B-level/C-level suppliers according to the assessment.

(2)Identify the supplier’s risk level:

A-level suppliers: above 90 points are A-level (excellent) suppliers.

B-level suppliers: 70 to 89 points for B-level (qualified) suppliers.

C-level suppliers: Unqualified suppliers with less than 70 points are listed as C-level suppliers. C-level suppliers need a quarterly document review or video audit, and they need to be counseled until they are qualified.

3.On-site audit

 (1)Conduct on-site audits in accordance with the company’s “Supplier Corporate Social Responsibility Assessment Operations”.

 (2)Indirect suppliers and key manufacturers are required to conduct on-site audits every year.

4.Coaching improvement and tracking

C-level suppliers:

(1)Document review or video review is required every quarter.

(2)After corrective countermeasures are proposed and corroborating materials are attached, the SQE will review it.

(3)Guidance is required until qualified.

5.Supplier Sustainability Assessment – Execution Criteria for Supplier Selection

The company attaches great importance to social corporate responsibility and joins the RBA as a full member in 2021. Xuande fulfills its social responsibilities as a corporate citizen with the RBA goals, vision and norms, and maintains the sustainable development of the electronics industry together with the RBA alliance members.

According to the five aspects of RBA, labor/occupational health and safety/environmental pollution/business ethics/management system will be evaluated, and 32 suppliers will be evaluated in 2021. Xuande is committed to safeguarding labor rights, health and other rights and interests, and abides by integrity management, Protect the environment for sustainability, implement occupational safety in the workplace, and establish an efficient and communication management system.

The number of suppliers evaluated in 2021
The number of suppliers evaluated in 2021

3.Specific practices of supply chain management

A supplier evaluation team was established, and the applicant unit convened quality control, engineering, procurement and other units to form a supplier evaluation team to understand and evaluate suppliers’ various capabilities. Consider suppliers as partners, and regard sustainability and risk management as important strategic guidelines. In addition, review supplier quality, price, and delivery status every six months, and adjust strategic suppliers.

Supplier Evaluation

Supplier audit

Supplier meeting

All suppliers must comply with supplier management procedures, pass supplier evaluation, and sign a letter of commitment to integrity, in order to ensure accurate supplier delivery, stabilize the quality of incoming materials, and establish the company’s market reputation.

In order to enable the company’s cooperative suppliers to maintain and improve the original quality, delivery time and coordination to meet the company’s needs, thereby ensuring delivery quality and reducing failure costs, the company is responsible for quality, procurement, SQE, safety and environmental protection and other related issues. The responsible unit conducts relevant assessments on a quarterly basis.

The company will hold training and publicity from time to time. Through different forms of guidance and communication, the quality of suppliers can be effectively improved, and suppliers are required to comply with corporate policies such as sustainable management and ethical integrity.

4.Rating of sustainable suppliers and countermeasures

The company’s supplier evaluation is based on the “Supplier Social Responsibility Evaluation Form” to evaluate suppliers in terms of environmental protection, occupational safety and health or labor rights, such as: passing RBA certification or ISO related certification, or providing corresponding management policies.

Rating scale

Rating score

Coping measures


90-100 points

It is recommended to increase the purchase volume.




Maintain current operations, but require suppliers to continuously strengthen management mechanisms.


Below 70 points

1.One document review or video review every quarter.

2.Corrective countermeasures must be provided and corroborating materials should be attached for review by SQE.

3.Guidance is required until qualified.

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