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Policy/Commitment
Qisda expects its global suppliers to be committed to complying with the laws/regulations, social standards, and environmental plans of their native country with integrity. At the same time, Qisda seeks opportunities to inspire its suppliers to create innovative techniques and green components needed in production, even facing the depletion of natural resources.
Management Approach
Qisda’s supplier selection employs a survey with a wide range of screening criteria, including the supplier’s company and product information, major customers, financial performance, procurement contracts of responsibilities and obligations with Qisda, the supplier’s green management procedures, commitment to Qisda’s Green Product policies, and investigations of the supplier’s social responsibility and environmental safety and health management.
Goals & Performance
Suppliers that have completed Qisda Supplier Social Responsibility Investigation and passed the on-site audit of the investigation accounted for 81% of the total purchasing expense.
Suppliers that have acquired ISO 14001 Certificate accounted for 70% of the total purchasing expense.
Suppliers that have acquired OHSAS18001 certificate accounted for 25% of the total purchasing expense.
22 suppliers have completed EICC Self Assessment Questionnaire (SAQ).
As a cross-industry, comprehensive ODM/OEM leader in electronics, Qisda partners with over 900 suppliers around the globe. Qisda takes it as a serious responsibility to actively involve all suppliers in building a safe, healthy, and sustainable supply chain that protects the environment and values human rights.
Supplier Management
Supplier Selection and Qualification Procedures
Supplier selection is accomplished in accordance with Qisda’s future product trends and purchasing strategies that assist our company to choose the right supplier based on its capacity, technical innovation ability, quality, services, and its management system. When evaluating a new supplier, an assessment team is created and comprised of members from procurement, quality assurance, R&D, and component sample approval teams. The team creates a survey that inquires about all potential suppliers’ capabilities, and finally evaluates the results from the survey. Only if a supplier passed Qisda’s strict qualification procedure, it can become a qualified vendor and proceed with its new product verification.
The supplier selection employs a survey with a wide range of screening criteria, including the supplier’s company and product information, major customers, financial performance, procurement contracts of responsibilities and obligations with Qisda, the supplier’s green management procedures, commitment to Qisda’s Green Product policies, and investigations of the supplier’s social responsibility and environmental safety and health management.
Figure 3.1. Supplier Selection and Qualification Procedures
Supplier Assessment
Qualified suppliers that passed the supplier selection procedure must continue to be assessed on a regular basis. The IQSDC evaluation module examines a supplier from five aspects: Innovation/Technology, Quality, Delivery, Cost Leadership and Speed/Response. The outcome of these evaluations will be considered in procurement strategies by sourcers, who consult with relevant departments to establish a Strategic Suppliers List of Key Components and update it every half-year.
For suppliers who do not make the list, they will stay as qualified vendors. Qisda gives higher priority to its strategic suppliers in business selections or high volume of procurement opportunities.
Figure 3.2. Supplier Evaluation IQSDC Overview
Supplier Risk Management
For qualified suppliers, Qisda also cautiously perform risk assessments periodically or at nonscheduled times to investigate the financial status of suppliers and pay close attention to suppliers with high financial risk to avoid disputes such as discontinuity of product delivery due to bankruptcy. Qisda also performed major risk investigations on suppliers during crucial times such as 311 Japanese earthquake and tsunami, Thai flood crisis, the peak period of the New Influenza season, and the labor shortage in China. Suppliers located in the affected areas underwent thorough investigations for relevant contingency plans, or were advised to make appropriate adaptations. Those are examples of Qisda’s precautionary measures to maintaining a stable supply chain to prevent damages to its business operations and protect the rights and benefits of its stakeholders.
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