Partnership
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. To grow together with suppliers, we develop complete supply chain management practices and management practices that include supplier management, supplier evaluation, supplier audits and green material requirements to guide suppliers to meet green supply chain requirements and reduce supply chain risk. According to the RoHS regulations and the provisions of banned substances (QS-2-702) 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.
 
Structure and raw material supplier management policy are introduced as follows
Raw material supplier attributes
Definition
Management Strategy
One and only supplier
The raw material is produced exclusively by one and only supplier and no other supplier can replace it.
Strive for the best quality, delivery, service, price, and other aspects of cooperation.
Single supplier
Such raw material can be supplied by different suppliers, but due to the difference of product property Wafer Works only certified one supplier in line with the property demands.
Strive for the best quality, delivery, service, price, and other aspects of cooperation.
* Early involve in the cost analysis strategy.
* Promote SECOND SOURCE program.
Multi-supplier
Such raw material can be supplied by different suppliers and Wafer Works has certified multiple suppliers.
Strive for the best quality, delivery, service, price, and other aspects of cooperation.
* build a competitive supply environment.
* Filter manufacturers, eliminate the weak and keep the strong ones.
* COST DOWN and risk dispersion.
 
Currently, Wafer Works' main sourcing area for raw materials is Taiwan. In order to promote sound business activities, we cooperate with various sourcing partners to actively promote CSR sourcing and green sourcing, and promote the implementation of localization of materials to support the development of local suppliers, which not only can reduce unnecessary air and sea freight costs, but also reduce the carbon footprint generated during the delivery of materials. We also implement environmental protection mechanisms. In addition to the recycling of pallets and PP cushioning materials by warehouse staff, we also use recycled materials for packaging corners of raw materials and reuse shipping boxes to reduce costs and waste of resources.
* Percentage of pallets,PP buffered and shipment box recycled materials in 2020*
PP buffer material: 11,911 (recycling) / 104,147 (total amount) * 100% = 11.4%
pallet: 1,731 (recycling) /6,682 (total amount) * 100% = 25.9%
Shipment box: 13,403 (recycling) / 309,950 (total usage) * 100% = 4.32%
 
 
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.
 
 
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.
 
             
                           
Supplier Evaluation and Supplier Audit
According to the Qualified Supplier Evaluation and Assessment Practice (PR-3-205), Wafer Works assesses the quality, delivery, price and cooperation of suppliers every 6 months, and arrange supplier audit activities every year to ensure that the supplier's performance meets the requirements. There are 46 key and important material suppliers participated in the 2020 annual supplier assessment. The assessment result showed that nearly 100% of the suppliers are of over Grade B, in line with expectations. In addition, 17 suppliers were selected for auditing based on the annual supplier audit program among many suppliers. The audit process is based on ISO 9001, and the supplier's quality system, products, and production process are audited. In addition, the compliance with the procedures of social corporate responsibility, green materials, and emergency response are examined, and the audit results are all in line with expectations
 
 
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.
 
Human Rights Related Topics
In order to be a qualified supplier to Wafer Works, suppliers are required to complete the questionnaire self-assessment required by Wafer Works and to ensure that no forced labor (including debt bonding, involuntary prison labor, slavery, etc.) is used. The company shall not discriminate against employees in recruitment or hiring activities (e.g. promotions, rewards, etc.) based on race, color, age, gender, sexual orientation, disability, pregnancy, creed, political affiliation, association membership, or marital status, and shall not violate legal requirements regarding child labor and corporate social responsibility requirements. In addition, we will take improvement actions when we find the related operation sites or suppliers.
 
Customer Service
 
Wafer Works based on the concept of "customer first" and provides a 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, an NDA will be signed between both parties to ensure no information leakage. Ask employees to sign NDA, arrange regularly training courses, and the computers used by employees have closed access functions to strengthen the protection of company data.