Supplier Assessment and Audit

New Supplier Assessment
Compal’s PCBG Procurement Department required all suppliers to complete the “Supplier Profile”, “Supplier Internal Management Questionnaire”, “Supplier Environmental Management Questionnaire”, and “Supplier RBA Self-assessment Worksheet” and provided documentary proof for ISO certification. Each supplier was assessed for performance on a number of aspects including environment, safety, product liability, human rights, social involvement, etc.
The Procurement Department distinguished suppliers between Type A and Type B. Type A suppliers consisted of foreign manufacturers, locally renowned companies, IC design companies, and suppliers designated by customers, whereas Type B suppliers consisted of local manufacturers.
Type A suppliers were surveyed by way of documentary review. The Procurement Department first consolidates the “Supplier Internal Management Evaluation Worksheet” and then informs R&D, SQE(Supplier Quality Engineer), Quality System/Green Product and Environmental Assessment Departments to verify and approve the worksheet. The approved document was forwarded to the Engineering IT Department, where suppliers were assigned an official ID and included in the “Qualified Suppliers List”.
 

The suppliers of SDBG needed to pass the economic, social, and environmental evaluation. In accordance with the standards of ISO 9001 suppliers approval or disapproval management procedure, the suppliers in supplier evaluation were distinguished into four types: Type A, B, C, and D. For the existing qualified suppliers, Compal continues to introduce green product specifications and requirements, and collects SAQ (self-assessment questionnaire) as the first step of audit.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Supplier Online Assessment and On-site Auditing

For the existing qualified suppliers, Compal continues to introduce green product specifications and requirements, and collects SAQ (self-assessment questionnaire) as the first step of audit. At the same time, since 2009, a CSR team has been formed by Compal’s production site. According to the CSR Supplier Evaluation and Identification Procedure and the annual transaction amount risk, different suppliers are sampled for factory field evaluation, and the RBA code of conduct is used for audit to ensure that suppliers meet the CSR issues. In case of any supplier who violates the relevant terms, it is required to improve immediately and the improvement shall be traced. In case of legal or contract related matters, the supplier shall be responsible for the terms of the contract signed by it. In addition, the procurement unit manages the supply status of suppliers through Material Requirements Planning (MRP), and conducts supplier evaluation based on monthly performance score. In case of special events or emergencies, we shall visit the supplier’s place to coordinate and deal with relevant issues in person.

With Kunshan manufacturing center as the main audit plant, Compal selects suppliers with large transaction amount and high risk of goods shortage as audit objects every year. The audit evaluation standard is divided into four levels based on RBA's VAP process: priority, major, minor and observation. Among them, priority is a serious non-conformance situation, which has a significant and immediate impact on the operation of the plant. Compal not only requires suppliers to formulate and implement improvement plans for all levels of deficiencies, but also specifically tracks the lack of
priority and actively requires suppliers to improve. In 2020, a total of 16 manufacturers in Kunshan plant and Chongqing plant of Compal have completed the on-site audit. The audit results showed that the deficiency of suppliers was mainly due to "labor": excessive working hours and lack of days off. The minor deficiency includes health inspection and insurance were not implemented, and relevant documents and data were not actually saved. In order to eliminate the deficiency, Compal has not only required suppliers to improve and submit improvement reports within a time limit, but also conducted annual sampling and audit of such high-risk suppliers. In the same year, Compal has completed the review and tracking of supplier audit.

 

Updated on September 8, 2021