Green Supply Chain

The types of Compal’s suppliers were the manufacturer of electronic parts and components around the world and mainly located throughout China (in southern and coastal areas), Europe, and America. Production centers were mostly located in Sichuan and eastern coastal areas in China. Compal’s Taiwan Headquarters and China Production Base were the most important locations. To pursue production and supply efficiency, the average rate of local procurement, which the trading suppliers registered their location address in Taiwan and China, was 62% in 2017.

Local Purchasing and Selection of Supply Chain

Products Compal developed include notebook PCs, smartphones, tablet PCs, e-books, smart watches, televisions, and IoT, etc., and also include hundreds of related important components like faceplates, touch screens, camera modules, fingerprint recognition modules, batteries, battery chargers, charger cables, electronic parts and components, electromechanical components (printed circuit boards, flexible print circuits, acoustic components, etc.), and mechanism elements. The suppliers were from Taiwan and China and factories also located in Taiwan and around China (southern, eastern, and northern areas and Chongqing). The continued increase of previous described products’ applications and demands made most of the suppliers expand their factories to China in addition to expanding their remained factories’ production capacity. In recent years, Taiwan plant suppliers have continued to transfer overseas, resulting in the removal of procurement locations and about 16% gradual decrease of the local procurement rate in the past year. Compal will retain the spirit of local procurement to continue to develop new local suppliers through procurement management procedures.

Raw Material Suppliers Management

Compal adopts the policy of signing procurement agreements with every new supplier it engages with. The purposes of such agreements are to prohibit any unfair, unjust or discriminative behaviors in the procurement process, and to reiterate that: all products supplied to Compal must conform to international, national, and regional environmental regulations. Suppliers will be held responsible for any violations of the agreement. Through material requirements planning (MRP), the Procurement Department manages the suppliers’ supply condition and evaluates the suppliers’ appraisal through their performance every month. Coordination and problem handling with the suppliers face to face will be arranged if special events or emergencies happen.

Supplier Risk Management

The risk management of Compal’s PCBG and SDBG were regulated in the risk analysis and management procedure of ISO 9001 procurement management procedure, including suppliers’ evaluation, technical support capability, and the second source for critical parts. The risk analysis and management of input materials quality were executed in compliance with “suppliers approval or disapproval management procedure”, “regulations of machine components approval”, and “regulations of electronic parts and components approval”. If an international related disaster happens, the Procurement Department will conduct disaster investigation on the cooperating suppliers located in impacted areas and divide problems into two types of supply interruption and transportation interruption. After the investigation, the Procurement Department will work in coordination with the R&D Unit, Quality Management Department, Project Manager, and Business Unit to arrange response measures discussion and implementation.

Procurement System Platform and Communication

Compal has created a Supplier Opinion section on CPS (Compal Procurement System) since 2015 to serve as a communication channel with its suppliers. CPS is also used to make major announcements to suppliers. In 2017, Compal hosted three supplier sessions in Taipei, Kunshan in China, and Chongqing and Chengdu in Sichuan in an attempt to have more intense and direct communication with every supplier.
◎2017 Supplier Seminar Information:
Location Date
Taipei Seminar 1/5/2017 (Thurs.)
Kunshan Seminar 1 /10/2017 (Tues.)
Chongqing and Chengdu Seminar 1 /10/2017 (Tues.)