達興材料 - Supplier Relations

Company Profile

Supplier Relations

Integrity is Daxin's business philosophy, which is an important condition for selecting suppliers. Daxin cherishes and attaches great importance to suppliers, and regards suppliers as long-term partners. We believe that only with similar concepts can the partnership be long-term. In the procurement management process, suppliers or contractors who clearly standardize delivery or provide services to Daxin must sign the "Integrity Transaction Commitment", which promises to carry out all transaction behaviors in good faith and not to damage the interests and image of Daxin. Daxin also asks the company's colleagues and suppliers to avoid any inappropriate conflicts of interest at any time.

In addition to ensuring the quality, delivery time, and price of suppliers, suppliers of Daxin Chemicals must sign and comply with the [Declaration of Chemical Control Compliance] for the implementation of environmental protection and international standards for the use and use of chemicals. , [Letter of Guarantee on Hazardous Substances], and the content standardizes the relevant regulations to ensure that the chemicals used by the company can meet the consistent concept of environmental protection, personnel safety, and sustainable operation of the company.

Supply Chain Management

For the management of suppliers and outsourcers, the company stipulates [Supplier Management Procedures], with clear management specifications for supplier selection, audit and evaluation. For the top 20 suppliers in the year of trading with the company and key raw material suppliers selected by quality assurance, manufacturing, R&D and procurement at the end of each year, through annual audits, whether the suppliers have obtained quality management and certification (ISO9002), environmental safety and health management practices and certification (ISO14001), green product (GP) certification, CSR implementation status, listed as the focus of audit and scoring, as an important basis for whether to continue cooperative procurement.

The specific practices of supplier management are as follows:

Supplier Selection	1. Suppliers must be evaluated by the R&D department and verified by sample introduction products, and confirmed by the unit supervisor before they can be imported. 2. Process-related raw material suppliers must provide quality system certification data or plans as important indicators for future evaluations. 3. Suppliers must provide relevant environmental safety and health certification materials and practices as important indicators for future evaluations. 4. Suppliers acknowledge that they must sign and comply with the [Declaration of Chemical Control Compliance] and [Hazardous Substances Guarantee Letter] to complete the supplier recognition process.
Supplier Audit	1. For the top 20 suppliers in annual procurement, at the end of each year, an annual written audit of the suppliers is required, and the supplier self-assessment and the quality assurance department are divided into two equal parts as the basis for the next year's procurement. 2. The focus of the audit is divided into: the status of relevant certification (quality, environmental safety and health, green products, etc.), the implementation of the quality system, the implementation of the environmental safety and health system, and the implementation of CSR. 3. At the end of each year, key raw materials are investigated for mass-produced products, and suppliers of important raw materials are selected to conduct on-site or written supplier audits in the following year. Among the suppliers evaluated in 2021, there are 13 (61.9%) grade A suppliers, 7 grade B suppliers (33%), and 1 grade C supplier (4.8%) From 2023, the top five excellent suppliers will be selected every year for awarding and commendation of excellent suppliers, hoping to continue to establish a good partnership.
Supplier Evaluation	The annual evaluation is based on the supplier audit results: the evaluation level is divided into three levels: A, B, and C. A-level evaluation with a total score of more than 90% is judged as an excellent supplier, sustainable procurement and increased procurement volume. The total score of the B-level evaluation is 70~89 points. It is judged as a qualified supplier, and it continues to trade and requires improvement. If the total score of the C-level evaluation is below 70, it is judged as an unqualified supplier and needs to be given strategic counseling or not purchased.
Supplier Coaching	For suppliers rated as C, if they need to continue purchasing, they must formulate a coaching plan. If there is no improvement in the next year, their supplier qualification will be cancelled. Regarding the coaching plan, it is necessary to formulate improvement plans and schedules based on the deficiencies in the audit report, and make improvements one by one.