USI Corporation Website ESG中文

Continual improvement of the SCM mechanism

With quality, ability, and environmental policy as conditions, we perform corporate social responsibility in collaboration with outperforming suppliers on a long-term basis. We also communicate with contractors and transporters our environmental policy, comply with the EU’s RoHS directive, enhance environmental education and training, and care about the safety of contractors working in our plants in order to ensure the safety of all operations, protect the life, safety, and health of personnel, and optimize risk management.

Management of raw materials suppliers

We establish long-term strategic partnership with raw materials suppliers and determine the safety stock based on materials preparation lead-time to ensure supply chain fluency. To encourage suppliers to make continual improvement, so that we can receive quality raw materials and services at the right time, in the right quantity, and at the right price, we constantly increase supply sources and evaluate suppliers biannually.

We select qualified suppliers of raw materials and OEM products based on one of or a combination of the following:

 Suppliers with credibility or a good reputation at home and abroad.

 Suppliers certified by international systems, such as ISO 9001.

 Suppliers designated by technology suppliers.

 Suppliers with a good quality or delivery record.

 Exclusive suppliers of materials.

Establishment of a qualified supplier selection process

USI-ESG-SCM Mechanism

Rating items

Raw materials Product transportation
Delivery Punctuality (G) Quality (G) Undertaking capacity, cost, guarantee, and claim (G) Work quality, efficiency and cooperativeness (G)
40% 60% 40% 60%
Note 1: (E), (S), (G) represent respectively environmental, social, and governance aspects.

Results of raw material supplier evaluation in 2019-2021

Year 2019 2020 2021
Suppliers Evaluated 72 76 51
Pass Rate (%) 100% 100% 100%

Management of construction contractors

We outsource construction contracts to local contractors, and on-site personnel of the plant supervise and manage them during the construction period. In addition to construction projects, we care about HSE, occupational safety, human rights and labor practices.

Establishment of a qualified contractor selection process

USI-ESG-SCM Mechanism

Contractor qualification items

Capital Total Amount of Two Major Projects in the Last 2 Years Cumulative Amount of Projects each over NT$200K in the Last Year Factory Scale Amount of Equipment Investments Numbers of employees
10% 20% 10% 20% 20% 20%

Project construction evaluation

Construction Quality (G) Health and Safety Measures (E) Coordination Performance (G) Site Manager (S) Environment Maintenance (E) Construction Progress (G)
40%（G） 20%（S） 10%（G） 10%（S） 10%（E） 10%（G）
Note 1: The pass mark is 50 points. We will stop enquiries from contractors with a score of 30-49 points for one or two years and disqualify contractors with a score below 30 points.
Note 2: (E), (S), (G) represent respectively environmental, social, and governance aspects.

Results of construction contractor evaluation in 2019-2021

Year 2019 2020 2021
Suppliers Evaluated 111 124 0
Pass Rate (%) 100% 100% 0
The Kaohsiung Plant transfers project outsourcing to the Group’s Procurement Department II. From 2021, only two projects were outsourced by the department, and no construction evaluation was implemented.