Partnership
Interaction with supply chains

Interaction with supply chains

Wafer Works actively invests labor and resources in the investigation and confirmation of raw material suppliers as the control of internal hazardous material information. We incorporate environmental protection principle into the supplier management mechanism. According to the RoHS regulations and the provisions of banned substances (QS2-702) demanded by customers, Wafer Works requests key and important material suppliers to use raw material and packaging material complying with environmental protection related specifications as well as no use of metal materials produced by the countries listed in Conflict Metals. Together with our suppliers and partners, we jointly seek and develop better and more environmental-friendly green products and through procurement to contribute for local social economic development. To ensure the compliance with our demands for all key and important material suppliers, Wafer Works holds regular assessments and reviews of suppliers for their compliance level, and should there is any incompliance item the supplier is requested to improve it.
 
 
 
Supply Chain Organization
 
 
                             
 
 
The suppliers of Wafer Works consist mainly of raw materials suppliers, equipment engineering suppliers, waste disposal vendors, on-site vendors (such as security, janitors), and land, sea and air transportation contractors, which are mostly with long-term cooperative relationship. Unless there is a significant change in demand or supply that requires seeking new suppliers or adjusting procurement ratio, we keep good purchase relationship with our suppliers.
 
 
 
 
 
Presently the main area of procurement of Wafer Works is Taiwan. In order to facilitate healthy operating activities, we cooperate with each procumbent partners to actively promote CSR and green purchasing as well as the implementation of material supply localization to support the development of local suppliers with actual movements, which reduce not only the cost of air and sea transportation but also the carbon trace generated during the material shipping process.
 
Country
Percentage
China
7.7%
Japan
20.4%
Korea
2.8%
Taiwan
56.3%
German
4.2%
America
5.6%
Others
3.0%
 
 
 
 
 
 
 
 
 
 
Vision of Supplier Management
The vison of supplier management of Wafer Works is to strenghthen peoduct quality, supplier management effectiveness and the balance of quality cost through the cooperation with suppliers, and to further improve the customer service effiecity and satisfication in order to attain a win-win situation by building a supply chain partnership with customers and suppliers.
 
 
The supplier management works under the logic of "keeping the strong, weeding out the weak". After acknowledging a supplier, the documents, incoming material quality, delivery schedule control , etc., shall be recorded as the reference for annual assessment by engineering, purchasing and QA departments. Also, the internal supplier audit plan is implemented for certificaiton. Once there is any abnormality found, the supplier is requested for constant improvement.
 
 
              
 
                           
Annual Supplier Assessment Result
There are 42 key and important material suppliers participated in the 2016 annual supplier assessment. The assessment result showed that nearly 80% of the suppliers are of Grade A and over 20% of them are of Grade B. In order to verify this supplier assessment result, based on the supplier annual audit plan we selected 10 suppliers among all the suppliers for verification, the result of which displays a compliance with the assessment result.
 
 
Conflict Mineral Issues
Wafer Works has incorporated the “Conflict Minerals” into the supplier management policies. As citizens of the world, Wafer Works declare and promise not to accept the use of metals from mines in conflict zones. At the same time, we also require our suppliers to promise not to use metallic materials from mines in conflict zones in their products to prevent such conducts through the market mechanisms.
 
 
Child Labor Issue
In order to become a qualified supplier, the supplier shall complete a self evaluation questionnaire provided by Wafer Works, guaranteeing no violation of child labor related laws and regulations as well as the requirements related to corporate social responsibility, and upon discovering the foregoing violations in relevant operation points or suppliers, improvement activities shall be taken.
 
 
 
 
Customer Service
 
Wafer Works based on the concept of "customer first" and provides an one-stop-shop service for fulfilling customers' current and future needs.
 
Service Satisfaction Implementation Principles
With the top 30 customers in sales volume as main questionnaire objects, sales representative will issue questionnaires or conduct telephone interviews to obtain effective responses from the customers. The responses will be analyzed and reviewed during the monthly quality meetings to obtain customer satisfaction. Responsible departments will be appointed to propose improvement plans and to ensure the implementation. The implementations will then be replied to the customers.
In additional to the annual satisfaction survey, there is a "Customer Quality Report System" to completely record quality issues, which will be confirmed and reviewed in a temporal meeting involving all related personnel. Also, actions and status will be constantly traced in the weekly quality review meeting.
 
 
Customer Privacy
"Establishment with Honesty" is one of Wafer Works' business philosophy. Before doing business with the customers, a NDA will be signed between both parties to ensure no information leakage. Therefore, Wafer Works Corporation has not been complained about related circumstances about invasion of customer privacy or loss of customer data.