Customer & Supplier

Customer & Supplier

Supplier Management

Fostering local suppliers,
Procurement through open, impartial, and fair processes,
Growing together with all partners.

 

Our procurement unit maintains an open, impartial, and fair procedure to implement the procurement of raw materials, supplies, equipment, construction service, semi-finished products, and finished products. The procurement unit proceeds with procurement according to the “Procurement Management Regulations” and “Procurement Standard Operating Procedure” in collaboration with the SAP Enterprise Resource Planning (ERP) systems and Certified Purchasing Manager (CPM) platform. Pulps, recovered paper, chemicals, and charcoal are the major procurement items. In 2018, we maintained normal and regular cooperation with 332 major suppliers (annual purchase amount over NT$10 million), with purchases mainly including raw materials, process energy and chemicals, and equipment construction projects. The purchase amount in Taiwan has been increased each year over the past three years. In 2018, the proportion of local purchases in Taiwan was 73.94%.

 

   

Supply Chain Management Policy 2018

Supply Chain Collaborative Management
Collaboration Platform Real-time Information Sharing
1. Strengthen the e-supply chain, real-time sharing of key information with procurement, suppliers, material management, production management, and third-party logistics.
2. Synchronize supply chain stock, subscription, and logistics plan: Including alert real-time stock, subscription information, and real-time logistics nodes.
3. Guarantee no distortion of information in the transmission process, resole supply chain’s long-whip effect problem, enhance supply chain organization performance.
4. Seek further supply chain collaboration, share knowledge, share risk, and strengthen operational workflow with quality partners. 
Publicity and Implementation of Sorting Needs
Improvement of Waste Paper Quality
Reduction of Terminal Treatment Costs
1. Provide “economic incentives” to help recycling companies to resolve and consumption channels to create a win-win environment.
2. Publicize recycling and sorting with associations, the government, charities, and the recycling supply chain to reduce terminal treatment cost.
3. Purchase high-quality waste paper to reduce waste contents.
4. Implement green supply chain to reduce environmental impacts.
Integration of Material Procurement Resources
Strengthening Group Price Bargaining Power
Enhancement of International Competitiveness
1. Inventory homogeneous materials in all paper mills for collective procurement to strengthen bargaining power.
2. Expand VMI stock management to reduce capital pressure.
3. Smart use of the CPM platform to increase procurement channels.
 

Mechanisms for supplier selection and evaluation

CLC rates suppliers regularly. In addition to rating their performance in quality, delivery time, price, service, cooperativeness, and ESH, we emphasize their compliance with labor practices and labor human rights. Each supplier is rated by grades Excellence, A, B, and C. C-graded suppliers will be disqualified for transactions and may re-apply for being a CLC supplier after making improvements by the given time limit.

 

Green supply chain

To promote a green supply chain, we request all CLC suppliers to sign the “Supplier’s Statement of CSR Compliance”. Based on the “CSR Information Disclosure Policy”, we evaluate the enterprise sustainable supply indicators of major suppliers. We even include environmental protection in the supplier management mechanism to request suppliers to guarantee that the products and materials they supply shall contain no restricted substances causing environmental hazards. We also request suppliers to submit valid evidence in order realize eco-friendliness, energy saving, and emissions reduction together.

In 2018, we performed CSR evaluation on 27 principal suppliers with the “Supply Chain CSR Information Disclosure Evaluation Sheet”. 15 were rated excellent and 12 were graded A. No suppliers with significant negative impact in the environment, labor practices, human rights, and society was identified.