Supplier Management
Suppliers of Shin Kong Security are primarily group businesses, such as Shinsoft Co., Ltd., which provides digital surveillance, access control products, smart logistics and information platform services; Shincluster Electronics Co., Ltd., which primarily provides security control products (video intercom system, perimeter sensor, parking management system, access control and attendance system, monitoring management system, and various security equipment supply); and Shin-Kong Communication Co., Ltd., which primarily provides integrated planning and maintenance services for ADSL, optical fiber network, telecom switchboard/operators, IDC cloud services, and communication networks. Furthermore, according to the different business attributes of the business groups, the executives of each division at SKS are responsible for supervising the group’s operations. In doing so, they not only improve communications efficiency, but also allow the concept and practice of corporate social responsibility to be implemented in the business group’s operations, with the goal of creating a sustainable supply chain.
Supplier Management Model
SKS has established a supplier counseling program to implement sustainability requirements within daily supply chain management, based on cooperation through supplier selection, audit counseling, performance evaluation, and training. In addition, SKS holds weekly domestic and international machinery and material procurement meetings to identify and manage the risks associated with inadequate supplier capacity, quality problems, and supply chain disruptions in conjunction with the warehouse and related business units. In 2022, there were a total of 11 new suppliers, 10 of which signed the Commitment to Human Rights and Environmental Sustainability Terms for Key Partners, accounting for 90% of the total amount of new suppliers.
- Suppliers must pass the supplier evaluation and comply with the Supplier Code of Conduct.
- Construction and related operations contractors must obtain occupational safety and health management licenses.
- Local suppliers must obtain a valid registration certificate issued by the local government in accordance with their business type.
- SKS has established an auditing team to track the progress of improvement for supplier defects, together improving quality and technology and enhancing yields.
SKS holds occasional trainings to improve the performance of occupational safety and health through different forms of guidance and communication, with the courses covering topics of occupational safety and health and regulatory risks.
Number & Percentage of Suppliers Signing the Commitment
Supplier Proportions by Category
Supplier Evaluations
SKS has established a supplier quality system and process capability evaluation standards in 2022, which classifies key suppliers into four levels: A, B, C, or D. Those who pass the supplier management evaluation will be qualified for contract renewal at the end of the year; otherwise, they will be targeted for counseling on management, or disqualified for contract renewal. Additionally, some suppliers are penalized in accordance with the Regulations Governing Supplier Evaluation, Reward and Penalization. Our management goal is to increase the proportion of sustainable suppliers and invite suppliers to make positive contributions to society, economy, and the environment, reduce negative impacts, and move toward a sustainable supply chain together. Since 2021, the COVID-19 outbreak has made it impossible to do on-site inspections, which has forced SKS to accelerate digital transformation. For example, some physical outsourcing meetings have been replaced with telephone outsourcing, not only reducing the need to move personnel and customers across regions, but also creating a new service model. In 2022, due to the fact that the COVID-19 outbreak in Taiwan has slow down, we conduct a field audit on one key supplier. In the future, we will increase the number of practice appraisers and occasional holds relevant trainings to jointly improve the quality and technology and enhancing yields.
Sustainable Environmental Education Practices
