Supply Chain Management

Key Achievements

SNI focuses on human rights, environmental safety and health, and ethical management-related requirements. In 2020, the company started to introduce the RBA Code of Conduct, established an RBA management system, promoted the RBA Code of Conduct, extended the RBA Code of Conduct concept to suppliers, encouraged suppliers to agree to abide by the RBA Code of Conduct, filled out the suppliers’ corporate social responsibility self-assessment form, and promoted the RBA supply chain system. The company encourage suppliers to abide by the RBA Code of Conduct, fill out the suppliers corporate social responsibility self-assessment form, promote the RBA supply chain system, and demonstrate our commitment to corporate social responsibility.

Guided by its philosophy of sustainable operations, SNI continues to promote it’s corporate social responsibility. Through the supplier meetings as a platform for direct advocacy, consultation, communication, and interaction with suppliers, SNI announce SNI’s latest version of restricted hazardous substance management procedures, future environmental protection policies, quality requirements, and labor & ethics management. At the same time, the company addresses various issues such as the energy resource depletion, and climate change in order to work together with suppliers to fulfill its corporate social responsibilities. SNI shares its green knowledge and experience in energy-conservation and carbon reduction with suppliers through such platform. This is also a way to build consensus and awareness of the green supply chain philosophy among SNI suppliers. The company can jointly develop a comprehensive green supply chain system that can achieve the goal of multiple wins by creating green products that are environmentally friendly, beneficial to improving people’s quality of life, and capable of achieving a harmonious coexistence and shared prosperity for all.

In 2020, ratio of local purchasing was 79.56%

In 2020, statistics of conflict mineral investigation were conducted 415 suppliers

In 2020, completed the audits and counseling of 4 suppliers

In 2020, the ratio of primary material suppliers which are based in Taiwan was 90%

In 2020, SNI recycled 10,709K pcs of partitioning trays

In 2020, ratio of reduction of transportation vehicle trips was 9.54% and saved about 900 liters of diesel fuel

Supplier Requirement

To become an SNI material supplier, vendors are required to meet extensive scrutiny and evaluation based on various aspects like material selection, identification, incoming materials management, scale of facilities, supply capacities, QA system, and relevant inspection instruments. This process ensures that suppliers comply with SNI requirements for FQC, delivery time, and use of restricted substances in order to facilitate smooth manufacturing operations. By purchasing materials at reasonable prices, SNI is able to seek profit for the company.

The purchasing department conducts audits on a monthly basis to evaluate major material suppliers based on their performance with regard to FQC, delivery time, degree of cooperativeness, and business reputation (i.e. environmental and labor conditions, human rights, society, and other negative impacts). SNI has incorporated the RBA Code of Conduct provisions in its purchasing contracts and expects all suppliers to comply with relevant requirements as indicated in the remarks section for orders.

SNI encourages all suppliers to abide by the RBA Code of Conduct by completing the Supplier Corporate Social Responsibility Self-Evaluation Form and promoting energy conservation and carbon reduction management. It is hoped that all suppliers work together with SNI to promote the latter’s supply chain system, creating a positive image that embodies labor rights, human rights, safety, and environmental sustainability so as to build customer confidence.

In 2020, SNI completed the audits and counseling of 4 suppliers, and the results showed all complied with the requirements. As such, SNI has planned to conduct supplier's CSR self-assessment requirements and an on-site audit counseling in 2021 to help suppliers fulfill their obligations pertaining to corporate social responsibility, energy conservation, and carbon reduction management. Suppliers that failed to meet the requirements have been notified to take corrective actions before the specified deadline. If they fail to do so, they will be replaced by backup suppliers.

Purchasing Policy

Follow the corporate policy to create profits for SNI and establish a co-existence and co-prosperity relationship with suppliers upon the impartiality and reasonability.

Recruit and cultivate quality purchasers and implement job rotation to enrich employee competencies.

Capture supply sources and aggressively cultivate excellent suppliers, OEM contractors, and second sources.

Capture four major elements: quality, delivery time, price, and after service to create profits for SNI.

Be familiar with market supply and demand, enrich professional knowledge, and optimize communication and coordination to enhance purchasing efficiency.

Manufacture Management

Transportation and Logistics Management

With regard to personnel transportation activities, SNI continued to optimize the service routes of its shuttle vehicles and had adjusted its service schedules in order to increase vehicle occupancy rate while reducing vehicle mileage. SNI also ensures that all its vehicles were properly maintained to keep them in optimal condition so as to improve mileage and reduce energy consumption as well as carbon emissions.

In terms of cargo transport, SNI facilitated interdepartmental coordination to achieve collective transport of loose cargo in order to reduce the number of vehicle dispatches. Moreover, it kept track of the number of trips made by each vehicle in order to optimize its vehicle and personnel dispatch plan for product delivery, achieving the highest possible utilization rate of vehicle storage space in accordance with pre-established routes. Goods to be delivered on the same route were transported by the same vehicle in order to reduce the number of trips to be made. This helped reduce expenses and increase transportation efficiency by effectively eliminating convective transport, thereby alleviating potential traffic congestion.

In 2020, SNI completed its statistics on the number of trips made by transport vehicles, which totaled 1886 trips. With changes made, SNI was able to reduce the number of trips by 180 (1706), which translates to a reduction of 9.54%, saving about 900L of diesel fuel. In 2021, the company endeavors to complete its statistics on the number of transport vehicle trips and reduce it by 10%.

Local Materials

SNI understands the significance of preserving energy resources and the convenience and advantage of local supplies. Given the importance of meeting product functional requirements and complying with customer and legal requirements, SNI has sought and cultivated local suppliers to develop and test their samples in accordance with new material recognition and introduction procedures while implementing purchasing solutions in the hopes of reducing energy resource consumption and environmental impacts. In terms of material selection, SNI prioritizes materials from local suppliers aside from considering competitive pricing and materials designated by customers. The company continues to purchase materials locally to the best of its abilities in order to prevent unnecessary costs and energy waste from air or ocean freight.

SNI’s Ratio of Local Purchasing

Note:Calculation was based on the proportion of local purchase amount to the total purchase amount.

Statistics of Suppliers Completing the Conflict-Free Smelter and Due Diligence Form

Unit:Company

Note:The investigation was conducted on primary and secondary suppliers.

SNI’s Conflict Mineral Policy

As an upright corporate citizen, SNI is committed to fulfilling its corporate social responsibilities. The company respects human rights, and reinforces conflict minerals management by requiring its supply chain to comply and implement the following policy:

- The company does not support or use metals sourced from areas affected by armed conflicts, illegal mining operations or poor mining conditions. These minerals are also called conflict metals.
- The suppliers assures that none of its products containing gold (AU), tantalum (Ta), stannum (Sn) and tungsten (W) have been sourced from conflict mineral areas.

This policy has been disclosed to all SNI employees and supply chain, requiring compliance of all concerned parties.