Supply Chain Management

 

Based on our persistence for quality and to protect the rights of the consumers, NANPAO has adopted a prudent and rigorous attitude in the screening process of suppliers as a part of the supplier management procedures. We require suppliers to provide copies of qualified certification of ISO 9001, ISO 14001, and OHSAS 18001, or other copies of qualified certification of similar management philosophies, or certification in compliance with RoHS and REACH standards. In addition, we also investigate the suppliers’ environmental, safety, and health policies to confirm that suppliers have complied with NANPAO ’s requirements of environmental sustainability. Before joining the list of qualified suppliers, new suppliers need to actively participate in NANPAO ’s audit and document review activities for quality, environmental health, and social responsibility. We hope to establish a long-term partnership with suppliers through a mechanism of mutually fulfilling the corporate social responsibility.

 

  • Three Aspects of Supplier Control and Selection

1. Supplier management: Ruling out monopoly from a single supplier by cross-referencing market conditions, delivery status, pricing, and quality to maintain reasonable procurement

2. Supplier management system certification: In response to environmental protection and safety and health requirements, suppliers who can provide international quality or environmental management system certification such as ISO 9001 and ISO 14001 will be the first to be introduced to our supply chain.

3. Supplier assessment: Evaluating suppliers based on the quality management system, production and delivery competency, technical development skills, environmental protection and pollution preventative management, and ability to handle product abnormalities on an annual basis; suppliers with scores lower than 70 (excluding 70) points will be placed under remedial procedures.

 

Quality Management System

1. Productivity and efficiency and coordinating competency

2. Logistics competency

Production and Delivery Competency

1. Well-roundedness for independent quality management system

2. Well-roundedness for production quality management system

3. Well-roundedness for materials and end-product examination system

4. Well-roundedness for import/export material management

Technical Development Skills

 

Environmental Protection and Pollution Preventative Management

 

Ability to Handle Product Abnormalities

1. System well-roundedness for handling product abnormalities

2. Tracking and handling of product abnormalities

 

Rating Score

Great

Good

Average

Poor

Bad

Pass: 70 points and above

10 points

8 points

6 points

4 points

2 points

Fail: Below 70 points

 

  • The Supply Chain of NANPAO ’s Headquarters

Costs of raw materials account for NANPAO ’s largest production costs. Moreover, the quality of raw materials is also a critical factor for the yield of production; therefore, stable raw material supply and positive material quality are our most important objectives for raw material procurement. For the top 10 raw materials that we had procured in 2019, in addition to factoring in the convenience and the freshness of materials, we also supported the development of Taiwanese industries. Local procurement of raw materials accounted for 76%, while overseas procurement made up the remaining 24%. 95 % of all top 10 general stores used by Nan Pao were procured locally.

 

 

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