To ensure supply chain quality and stability, Avalue implements new supplier audits and annual assessments in accordance with its internal supplier management system. New suppliers must complete a self-assessment audit form. Only those scoring 70 or above can be included in the qualified supplier list and engage in transactions. Those scoring between 61 and 70 will be determined by the purchasing manager as to whether to reassess at a later date or reject them. Those scoring below 60 will not be considered as procurement targets. In addition, suppliers with no transaction records within five years must be re-audited to confirm their continued compliance with cooperation conditions.
For existing qualified suppliers, the company’s quality control unit conducts annual assessments and compiles the results into a “Supplier Annual Assessment Statistics Table.” Assessment indicators cover quality/HSF quality (40%), incoming material quality/HSF quality (30%), process quality (10%), delivery performance (30%), and improvement cooperation (30%). Based on the total score, suppliers are classified into three levels: Class A (70 or above, low risk), Class B (60-69, medium risk), and Class C (59 or below, high risk). The purchasing manager will take appropriate management measures based on the evaluation results to strengthen supply chain risk control and cooperation quality. Currently, supplier evaluations have not yet fully incorporated environmental criteria (such as GRI 300 series indicators or ISO 14001 environmental management systems), but the company requires suppliers to comply with the four core labor standards – labor-employer relations, occupational safety and health, prohibition of child labor, and anti-forced labor – through the signing of the “Supplier Sustainable Social Responsibility Commitment,” with a signature recovery rate of 99.5%. Suppliers that do not meet the requirements are listed as ineligible and cooperation is terminated to ensure the social responsibility practices of the supply chain. Avalue performs assessment operations according to existing supplier management procedures. In 2024, a total of 27 new supplier evaluations were completed (7 institutional and 20 electronic), with a qualified rate of 96.3%, of which 1 failed to pass due to not meeting the standards.
Regarding product delivery, suppliers shall not arbitrarily change product specifications or design, and relevant requirements are clearly stated in the purchase order. If quality anomalies occur due to violations, the purchasing department should notify the finance department to suspend payment before clarifying responsibility, and initiate subsequent penalty procedures in accordance with the contract provisions. In addition, regarding the control of hazardous substances in electronic and electrical products, although the IEC 62474 material declaration mechanism has not yet been introduced, Avalue has established a “Product Environmental Specification” system and requires suppliers to sign a “Declaration of Non-Use of Hazardous Substances” stamped with the company seal to ensure that the products comply with environmental regulations and corporate responsibility requirements. Through these systems, we continuously strengthen sustainable supply chain management and move towards a more environmentally friendly and responsibly transparent goal.