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
Collaboration Platform Real-time Information Sharing
Improvement of Waste Paper Quality
Reduction of Terminal Treatment Costs
Strengthening Group Price Bargaining Power
Enhancement of International Competitiveness
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.