Sustainable Supply Chain
The raw materials used for production are mostly from suppliers of electronic parts and mechanical parts. These suppliers are mostly material manufacturers, licensed regional distributors, and subcontractors by category. In 2023, there were a total of 715 suppliers in the approved vendor list (AVL) with their locations spreading across Taiwan, China, Southeast Asia, Japan, Korea, Europe, and the U.S. 90% of all suppliers are located in Asia. We continue to promote supply chain localization and encourage suppliers to join and use the e-procurement system platform and the green electronic information platform of green supplier management (GSM) to minimize transportation and environmental costs. Before cooperating with a supplier, we consider quality, price, delivery term, production and technical factors, make constant efforts toward "green design," "clean production," and "energy-saving and carbon dioxide reduction" for the supply chain, and establish promotion, requirement, audit, evaluation, and other internal procedures for suppliers for sustainable supply chain management circulation.
New supplier evaluation and review
In order to become a new member in the supply chain of Ability, a new supplier shall complete the quality system audit (QSA), quality process audit (QPA), green process audit (GPA), and self-evaluation of the comprehensive business management evaluation and execute the procurement contract, nondisclosure agreements, letter of guarantee for no use (banning and restricting substances used), supplier's social responsibility agreement, supplier quality agreement, and supplier trade safety and legal compliance audit form. The need for an on-site review shall be subject to the material risks and procedure risks of the new supplier.
Section Title
Sustainability
specifications
- Green product audit
- Self-evaluation form for comprehensive
business management
evaluation - Supplier's social responsibility
agreement - Supplier trade safety
and legal compliance audit form
Management Mechanism
- Quality system
- Procedure system
- Non-disclosure
agreement - Supplier quality
agreement - Procurement contract
Risk identification
High-risk supplier identification
The contract entered into with the supplier has stipulated that the supplier shall comply with BC, CSR, ISM, relevant laws and regulations, and RBA. If there is any violation of the specifications with material circumstances, Ability may terminate the cooperating relationship with the supplier. In 2023, Ability Enterprise had a total of 18 new suppliers that complied with supplier review procedures.