Supply Chain
Management

Supply Chain Management

  Contractors and suppliers are key business partners which KNH aims to continue working and growing with. A management system has been put in place for contractors and suppliers. These systems encompass quality and service standards, green products, operations and manufacturing, costs, environmental safety and health risks, labor management, and a code of conduct.

  Our analysis has identified the following concerns for suppliers along with our own responses:

 

 

Concern

Communication Method

Financial Performance

Financial reports, annual reports, and monthly revenues are regularly published on the

Market Observation Post System of the Taiwan Stock Exchange.

Raw Material Usage and Management

1. Raw material usage batch management.

2. Non-compliant incoming materials are returned.

Supply Chain Management

1. Supplier Evaluation :

     The Company conducts a supplier evaluation based on the “Supplier Management

     Measures”. The supplier’s impact degree and importance on products will be

     categorized (1-6) as well as the evaluation rating (4 ratings). The transaction may

     begin after the audit and certification is carried out by the quality assurance unit. In

     addition, the “Supplier Survey Form” must be provided with the first transaction and

     an on-site audit is required. Audit content shall include aspects in terms of 

     enviroment, safety and sanitation such as plant design, sanitation management and

     laboratory control. The “Supplier Evaluation Audit Form” should be filled in by the

     quality assurance unit in order to conduct quality performance evaluation on

     suppliers.

  1. 2. Supplier policy :
  2.      Qualified suppliers must sign the “Code of Conduct for Suppliers”, of which contains
  3.      measures in terms of environment, health and safety. As of the end of December in
  4.      2023, 439 suppliers have signed to comply with the Code of Conduct.
  5. 3. Supplier audit :
  6.      Personnel is assigned to conduct evaluation according to the type of material grades
  7.      on an unscheduled basis, helping suppliers to improve quality. 11 evaluations were
  8.      carried out in 2023.

4. Supplier education and training :

     Raise the supplier’s awareness of anti-terrorism, environmental protection, safety

     and health issues on an unscheduled basis.

5. Market information sharing.

Product Development and Innovation

 We communicate the latest market requirements and learn about innovative materials

 to provide  customers with products of even better quality at a low cost.

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