Fostering local suppliers,
Procurement through open, impartial, and fair processes,
Growing together with all partners.
The 2015 overall procurement amount was about NT$20.9 billion. About 95% of suppliers were domestic enterprises, commanding 67.7% of the procurement amount. The purchasing unit conducts procurement regarding raw materials, supplies, equipment, construction, semi-finished products, and finished products based on open, impartial, and fair processes and in accordance with the Procurement Management Regulations and Procurement Standard Operating Procedure. We also purchase major raw materials, such as wood pulp, recovered paper, chemicals, and coal with the SAP Enterprise Resource Planning (ERP) system and Certified Purchasing Manager (CPM) platform.
SCM Policy 2015
2. Cultivating the CSR supply chain policy to create common benefits and reciprocity.
3. Understanding the cost structure, manufacture process, and management performance of suppliers.
2. Locating common raw materials and determining items for centralized procurement to increase the strength of bargaining for large quantity procurement.
2. Establishing a safe and healthy work environment to maintain corporate image.
2. Continuous promotion of the classification and reuse of recycled paper in Taiwan to reduce the final disposal cost of waste.
3. Aggressive expansion of industrial waste reuse and final disposal methods to reduce impacts on the environment and energy.
3. Reinforcing FSC and carbon footprint certification requirements for effective control of raw materials such as pulp, paper, and energy.
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.