CH. 6 Supply Chain Management
100
6.5
Risk Assessment and Management over Sustainability of Supply Chain
CTCI encourages suppliers to not only deliver quality
work and meet deadlines, but to also carry out environmental
protection responsibility and to provide decent employment
environment with us, in order to enhance the competitiveness
of both parties. Hence, starting in 2014, we have added a
vendor sustainability evaluation report that includes factors
such as environmental management, worker conditions,
human rights and impacts to society to our existing material
supplier and partner qualification evaluation record to all
vendors in our supply chain. These facors will be viewed
equally as existing factors such as quality, deadline, design,
and manufacturing capability in the sustainability risk
assessment management for our supply chain. This will
serve as a crucial evidence for CTCI's procurement strategy
and in collaborating with vendors to construct a sustainable
supply chain. We distributed 595 vendor sustainable
management assessment reports in 2015, of which 227
reports were handed back to us. In which 95 vendors did
■
Management system risks
■
Environmental risks
■
Labor condition risks
■
Social impact risks
95
17
3
1
■
Management system risks
■
Environmental risks
■
Labor condition risks
■
Social impact risks
95
17
3
1
not have ISO 14001/OHSAS 18001 standards, 17 had high
risk in environmental management, 3 had high risk in labor
conditions, 3 had high risk in human rights, and 1 had high
risk in societal impacts. We will continue to monitor these
vendors in next year's evaluations. Because the number
of vendors in our database is very significant, we hope to
investigate about at least 200 vendors annually and to input
our findings into the database. For the high risk vendors,
we will continue to monitor them annually, understand the
cause of their problems, and to give appropriate guidance or
assistance as needed. In 2015, CTCI also conducted sampling
audit evaluations on suppliers, and had audited 55 suppliers
globally, in which 5 were in Taiwan, 14 in Malaysia, 8 in China,
5 in the US, 3 in Saudi Arabia, 7 in Korea, 10 in India, and 1
each in Germany, France, and Italy.
Supply Chain Risk Classification
