Supply Chain Management
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 2021, ratio of local purchasing was 81.26%
In 2021, statistics of conflict mineral investigation were conducted 359 suppliers
In 2021, ratio of reduction of transportation vehicle trips was 10.21% and saved about 1,380 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. SNI will continue to guide its suppliers on corporate social responsibility and energy conservation and carbon reduction management, and will also conduct audits according to the suppliers’ risk level. SNI will notify those suppliers that fail to meet the requirements for improvement, and they will be replaced by the backup suppliers if their improvements cannot meet the requirements.
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
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 2021, SNI completed its statistics on the number of trips made by transport vehicles, which totaled 2,703 trips. With changes made, SNI was able to reduce the number of trips by 2,427 (267), which translates to a reduction of 10.21%, saving about 1380L of diesel fuel. In 2022, the company endeavors.
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 impact. 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. Out of its primary purchasing requirements in 2021, approximately 81.26% of its material purchases in Taiwan were attributed to local suppliers (calculated based on the proportion of local purchase amount to the total purchase amount). The overall purchase ratio is 8:2.
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.
