Supply Chain Management

Actron actively implements green supply chain management and has developed long-term and effective cooperative relations with suppliers. Through the economic, environmental, and social aspects of risk assessment, we are able to strengthen the resilience of the supply chain, thereby reducing operational risks and implementing Actron’s concept of sustainable operations.   

To ensure that all suppliers of Actron are able to work toward the goal of sustainable operations and environmental protection, and to comply with the principle of integrity. All suppliers are required to comply with and sign the “Procurement Policy” and “Supplier Code of Conduct and Ethics”, in order to establish proper cooperative partnerships. The content of the standards and regulations includes green environmental protection, workplace safety, and employee human rights, prohibition on the receipt of illegal benefits, protection of the work rights of female employees and other items improving social ethics. In addition to allowing itself to serve as an example, Actron also encourages suppliers to adopt the same standards for their upstream suppliers and contractors in order to jointly adopt these standards for executing management.   

To implement the effective management of suppliers, Actron has established a comprehensive new supplier selection process. In addition to the basic evaluation of the delivery quality, cost, delivery date, technical capability, and after-sales service of suppliers, we also extend the evaluation content to include environmental protection, safety and health, and the management system, in order to implement Actron’s responsible supply chain action properly. To flexibly adjust resources and satisfy customer demands, the standards mentioned above have been adopted for selecting all new raw material suppliers to comply with the management system and environmental standard requirements of Actron. For those suppliers that fail to pass the evaluation but are considered necessary suppliers due to their special technologies or exclusive materials, we require them to make improvements and provide guidance for improvement according to the plan.

We list the main suppliers of direct materials and outsourced services. To reduce supply chain risks and to enhance overall supplier competitiveness, Actron performs periodic evaluations of the delivery quality, cost, delivery date and technical capability of main suppliers every year, and we also include the quality management system and safety and health into the three-year periodic audit, in order to complete the inspection and audit of all main suppliers and thereby implement corporate sustainable development together with the suppliers. When quality abnormality issues are found during the incoming inspection or production line quality inspection, an on-site audit is performed immediately in order to ensure the quality of the supply chain and to reduce the waste of nonconforming products of the production line.

In 2024, we selected 17 suppliers from 48 main suppliers to perform the annual audit, and established the plan to complete the three-year inspection and audit of all main suppliers. In 2024, the deficiencies of all suppliers were improved completely, and no suppliers were removed from the list of qualified suppliers.  In addition, according to the 2024 supplier evaluation results, 41 suppliers were ranked as Excellent, 7 suppliers were ranked as Grade A, 0 supplier was ranked as Grade B, 0 supplier was ranked as Grade C, and 0 supplier was ranked as Grade -D.

Actron has a total of 589 suppliers that are in different professional fields. To require the quality and products of suppliers to comply with relevant laws and regulations, we have established a systematic quality risk assessment mechanism to strengthen supplier management. According to the assessment results, 100% of the main suppliers are of low risk. The auto industry demands extremely high reliability and high quality for products, and it also adopts high standard specifications to review the use of raw materials. For our main raw material suppliers, there are two alternative suppliers for each raw material that have also been approved by customers in order to reduce the risk of material shortage. To prevent major accidents or other causes that may cause raw material supply shortage, we also require suppliers to set up a safe amount of inventory and to periodically review and control the inventory in order to ensure proper material supply.

For the use of raw materials, Actron has always adopted the optimization principle to reduce the generation of raw materials and waste as much as possible, thereby achieving the objective of a win-win situation for both the economy and environmental protection. To ensure that the raw materials, technical products, and technical services (including OEM) purchased can comply with national laws and regulations and the organization’s environmental safety and health requirements, during the design of new products of Actron, it is necessary to consider relevant regulatory regulations in the international environment and to require suppliers to comply with the RoHS, and to not use conflict minerals from the Congo and nearby regions.

The main production site of Actron is in Taiwan, and the local supply chain can create local employment opportunities, increase national competitiveness, increase supply flexibility, reduce unnecessary costs, ensure product quality and reduce carbon emissions during the product life cycle, so that the concept of green procurement can be realized. According to the procurement amount and geological location of suppliers, the suppliers located in the region of Taiwan in 2024 accounted for 92.87%, and the procurement amount accounted for 78.78%; the suppliers in other regions accounted for 7.13%, and the procurement amount accounted for 21.22%. In addition, the procurement amount of direct material suppliers accounted for 82.43%.