Supplier Management

Policy

ShunSin is committed to maintain long-term cooperation with suppliers by co-establishing a sustainable environment with stable development, aims to build a resilient, reliable and responsible supply chain.

ShunSin requires all suppliers to strictly comply with laws/regulations and social norms, and meet the requirement of quality, environmental protection and product safety. ShunSin also advocates its suppliers to improve labor's health and safety, value human rights, and collectively fulfill the corporate social responsibility in addition to preparing for risk management and operational sustainability plans.

Conflict Minerals Management

ShunSin strictly complies with the requirements of government and international organizations, does not accept and/or use conflict mineral from DRC and adjoining area/countries (refer to http://www.responsiblebusiness.org ), requires all suppliers trace the Gold/Tantalum/Tin/Tungsten and their derivatives used in the products shipped to ShunSin, and puts this requirement into contract to drive suppliers to fulfill corporation social and environment responsibility. Supplier who rejects to confirm CMRT or sign relevant agreement with ShunSin cannot become ShunSin’s approved supplier.

Supply Chain Management

●Selection of Supplier

Supplier audit team contains member from QA, R&D and Purchasing who strictly review supplier’s company profile, relevant certificates, quality certification records, environmental safety and health management. Also the team score supplier’s operational management, price and service level, quality system and engineering capability. ShunSin require suppliers comply with relevant standards in environmental protection, safety and hygiene. For example, suppliers are required to provide test reports and third-party test reports of harmful substances in non-volatile materials of final products, comply with Halogen-free Requirements which is based on the IEC 61249-2-21:2003, pass ISO14001 certification, etc. Score of each aspect and cumulative total must be above the standard before a supplier is qualified.

●Supplier Performance Measurement

ShunSin quarterly reviews supplier’s performance of quality, price, supply chain support and technical service, with the scorecard, encourages supplier’s improvement in quality, delivery, service and competitive price. For the unsatisfactory one, improvement is required and re-audit will be conducted. Procurement from supplier who cannot make improvement in time will be stopped, and the supplier will be disqualified if no efficient improvement within a definite time.

On basis of annual audit plan or when enormous quality/environmental issue occurred, ShunSin conducts audit to supplier.

●Supplier Counseling

ShunSin classifies supplier according to the product and risk, and provides necessary counseling to supplier who is unsatisfactory in quality and delivery based on quarterly scorecard and annual audit result, in order to meet ShunSin and end customer’s requirement.

●Supply Risk Management

ShunSin adopts risk assessment with suppliers by a workable procedure and takes the result as a significant reference in purchase strategy, as well as quality, delivery, finance and operation.

Suppliers are required to assess all kinds of potential risks and work out efficient emergency plan and procedure, to ensure operational sustainability and alleviate impact as minimum as possible.

ShunSin always makes effort to develop second source and evalsuate substitute materials to control supply risk.

●Green Procurement

ShunSin has implemented paperless procedure in many aspects, e.g. purchase order, invoice, etc.

ShunSin commits to continuously optimize logistics structure to minimize carbon emission in transportation.

ShunSin also advocates for green procurement in supply chain and integrate the green supply chain providing services to customers.

Open and Clean Supply Chain Environment

ShunSin advocate integrity and legitimate business, and dedicate to maintain an impartial supply chain environment.

No corruption is acceptable. Bribe to ShunSin's employee in any form is prohibited.