Vendor Management
Strategy
- Cost enhancement capabilities: Integrate group resources and use strategic partnerships to maximize the competitive value of the supply chain.
- Local procurement: Vendors are important partners in HannStar Board's operations. We use close cooperation to jointly pursue sustainable management and growth of the Company. We actively implement local procurement policies.
- Focus on environmental issues: The Company pursues economic benefits while protecting the environment. We enhance the reuse of waste resources and we are committed to reducing the impact of pollution in the environment.
- Zero compromise on conflict minerals: Ensure that no conflict minerals are used in products and the supply chain.
Commitments
- Evaluate vendors in the supply chain and develop supplier sustainability scoring mechanisms which will be used along with lead time, quality, and operations as an important basis of the procurement strategy.
- Actively require suppliers of specific materials (gold, tantalum, tin, and tungsten) to sign a letter of consent or provide a statement for preventing purchases from the Democratic Republic of the Congo.
- Respect and protect intellectual property rights and sign confidentiality statements.
- Adhere to operations with integrity, and improper acceptance of benefits, corruption, extortion, or misappropriation of public funds in any form is expressly prohibited. Establish a mechanism to maintain the confidentiality of the identity of the whistleblowers and persons reported.
Management of Conflict Minerals
HannStar Board Corporation has carefully investigated the supply chain and ensure that the gold (Au), tantalum (Ta), tungsten (W), cobalt (Co), and tin (Sn) used by the Company are not excavated by non-governmental militant groups or illegal groups from mines in conflict regions in the Republic of the Congo and or obtained through illegal smuggling channels.
Supply Chain Management Methods
- Supplier sustainability management capabilities
HannStar Board Corporation has carefully investigated the supply chain and ensure that the gold (Au), tantalum (Ta), tungsten (W), cobalt (Co), and tin (Sn) used by the Company are not excavated by non-governmental militant groups or illegal groups from mines in conflict regions in the Republic of the Congo and or obtained through illegal smuggling channels.
- Supplier assessment
Establish the “supplier evaluation mechanism” in response to supplier sustainability management requirements to regularly manage, evaluate, provide guidance, and track the improvement status of suppliers. Perform Q (Quality), C (Cost/Financial), D (Delivery), S (Service), and S (Sustainability) assessments each year. The Company requires all suppliers to sign the “Integrity Commitment / Confidentiality Commitment / Supplier Social Responsibility Commitment” and rigorously abide by the Supplier Code of Conduct and social responsibility regulations. Suppliers’ compliance with the regulations will be used as one of the factors to be considered in evaluating procurement decisions.
- Supplier sustainability assessment - onsite audits / assistance for improvement and tracking
HannStar Board has established mechanisms for improving the defects of suppliers. According to the supplier evaluation regulations, suppliers with low scores (failures) and suppliers with discrepancies in the execution of purchase orders will be subject to onsite audits or document audits by the Company, which shall identify the discrepancies and provide assistance and guidance to help suppliers complete improvements. If the supplier fails to complete improvements, we will continue to provide assistance and consider whether to suspend or terminate business relationship with the supplier to implement supply chain risk management.
