Supplier Management

Supplier Management​

Amigo attaches great importance to the quality, environmental protection, safety, health and other social responsibilities of the supply chain system, so we investigate whether the suppliers of key raw materials have passed ISO 9001, ISO 14001, ISO 45001 and other environmental safety and health verification, and whether there have been major environmental safety and health accidents in the past three years, and require suppliers to promise to comply with the "Labor Standards Act", "Occupational Safety and Health Law", human rights, compliance with the requirements of the Hazardous Substances Prohibition and Restriction Directive, conflict-free minerals related laws and regulations, and other implementation rules. In addition, in order to enable key raw material suppliers to work closely with us and improve their supply quality, material source and service level, so as to achieve the purpose of quality stability and cost reduction, all key raw material suppliers are required to comply with the supplier management measures to ensure that the raw materials can meet the needs of Amigo and regulatory requirements, and to control the delivery status and quality of suppliers through annual evaluation and other mechanisms.

Supplier Procurement Management Process

New Supplier Audits

  1. Basic information of suppliers (including quality/production/procurement/control of hazardous substances)
  2. Sign the RoHS/Supplier Conflict Minerals Statement
  3. Sign social responsibility commitment
  4. After being reviewed by the procurement supervisor, the QC/RD unit will be arranged

Suppliers are regularly evaluated

  1. Annual supplier evaluation: 60% of the quality of the delivery, 30% of the degree of cooperation and 10% of the price are the basis for evaluation and management
  2. Evaluation timing: Once a year, the evaluation will be completed before the end of October each year.
  3. Supplier and outsourcer annual evaluation conditions:
    1. There is a material defect in the product.
    2. Those who fail to pass the performance evaluation for two consecutive times.
    3. Ranked in the top 60 in terms of annual transaction value.
  4. If the performance evaluation results of suppliers or outsourcers are good and stable, they do not need to be included in the annual audit plan.
    1. Grading Classification:
      1. A – 90 points or above, included in the follow-up procurement of qualified major suppliers, RD can be preferentially imported in NPI.
      2. B – 75~89 points, listed as a qualified supplier.
      3. C – 50~74 points, please propose improvement measures, procurement, and RD assessment whether it is not necessary to include qualified suppliers and propose alternatives.
      4. D – 50 points or less, cannot be listed as a qualified supplier.

Supplier/Third Party Social Responsibility Commitment

1. Code of Integrity

2. Social Responsibility

  1. Do not employ or support child labor
  2. We are obliged to provide a healthy and safe environment (both at work and in life) and take appropriate steps to prevent accidents and health-related situations.
  3. Do not engage in or support any discrimination (e.g. race, social class, nationality, religion, disability, gender, gender orientation…) etc.), and respect the right to faith and custom.
  4. Sexual harassment is prohibited
  5. Disciplinary measures: corporal punishment, mental or physical punishment and verbal insults are prohibited
  6. Working hours: Comply with the statutory regulations on normal working hours and overtime, prohibit forced overtime, and require flexible overtime according to collective agreements
  7. Remuneration: meet the basic salary, and do not deduct wages due to punishment

3. Quality awareness advocacy

Hazardous Substance Management
In order to comply with environmental protection requirements, reduce the impact on the environment and the risk of human health hazards, abide by the requirements of the Prohibition and Restriction of Hazardous Substances, implement the control of raw material composition and fulfill registration obligations, all suppliers of raw materials and key materials are required to submit safety data sheets and sign self-declaration documents.
Conflict-free Minerals
Take stock of the supply of raw materials, and completely refuse to trade with mineral sources or suppliers with terrorist risks. Suppliers are required to sign a conflict-free minerals declaration to declare that their raw materials do not come from conflict minerals. In addition, we also visit suppliers from time to time according to demand to confirm that their supply sources comply with the regulations.
Supply Chain Carbon Emissions Survey
Since 2022, Amigo has conducted a carbon emission survey on the supply chain of (semi-)finished products, prompting suppliers to pay attention to greenhouse gas emission awareness.

Supplier Sustainability Management Policy

The company adheres to the spirit of operating with integrity, promoting sustainable development of the environment and safeguarding basic human rights. As relevant issues advance with the times, the company has achieved effective recognition and implementation of E (environment), S (society) and G (governance). Every year, we ask our suppliers to sign a corporate responsibility commitment letter and uphold the ethical standards that a company should have. We expect our suppliers to work with us to fulfill our corporate social responsibilities, strive to reduce business risks and harm to the environment, and protect human rights, so as to maintain A long-term and stable cooperative relationship, mutual benefit and sharing, and working together to create a sustainable supply chain.
The following are the goals we jointly abide by and strive for:​

1. Comply with labor standards​

The working conditions of employees employed should comply with the standards set by relevant laws and regulations such as the Labor Standards Act, the basic labor human rights principles recognized by international human rights conventions, and relevant labor laws and regulations.

2. Health and Safety​

Provide employees with a safe and healthy working environment, comply with local occupational safety and health regulations, and reduce dangerous factors in the working environment to prevent employees from occupational disasters.

3. Protect environmental sustainability​

Operations should avoid polluting water, air and land. Where cost-effective and technically feasible, efforts should be made to reduce adverse impacts on human health and the environment, and the best feasible pollution prevention and control measures should be adopted.

4. Abide by the principle of integrity​

Any form of bribery, corruption, extortion, theft, abuse of power and improper benefits is prohibited, including money, gifts, commissions, positions, services, preferential treatment, kickbacks, etc. in any form or name.

5. Information disclosure, transparency and cooperation​

Disclose information regarding participation in labor, health and safety, environmental activities, business activities, organizational structure, financial condition and performance in accordance with applicable regulations and prevailing industry practices. The company or its cooperating third-party verification unit is allowed to conduct audits on whether suppliers have violated this commitment letter.

Supplier Management​

Yitongzhan hopes to establish long-term and close cooperative relations with suppliers. The purchasing unit regularly evaluates suppliers on quality, delivery time, service and other indicators. Suppliers are requested to cooperate with the company's procurement strategy and accept audits.

Implementation status in 2023​

  1. Suppliers are required to sign a corporate responsibility commitment letter through sampling methods to ensure that the recycling rate reaches 100%.
  2. Supplier evaluation is conducted at the end of October every year, and the top 60 suppliers are evaluated. 14% are grade A, 65% are grade B, and 21% are grade C. The overall pass rate is 100%.
  3. In order to establish long-term cooperative relationships with suppliers, we assist suppliers in making suggestions for improvement measures to achieve the goals of mutual benefit and sharing.