Sustainable Supply Chain Management

Sustainable Supply Chain Management

In 2023, Inventec had transactions with a total of 1,175 suppliers. Inventec has established supplier risk identification procedure based on the factors such as industry characteristics, procurement models, and regional relationship, to assess the risk rating of its cooperating suppliers. Guided by RBA Code of Conduct and Inventec Supplier Code of Conduct, which serve as the basis for supply chain management, we team up with the supply chain to continuously improve on substainability issues such as environmental protection, social engagement and corporate governance, striving for mutual understanding and cooperation to achieve a win-win outcome.

Inventec cooperates with suppliers through various management actions and agreements. Apart from upholding the principles of continuous improvement and innovative technology, we also implement a sound process management system to fulfill environmental protection and corporate social responsibility, and ensure the delivery of best products to our customers as we stride towards sustainable development.

• Note: In 2022, there were 859 suppliers who should sign the declaration. In 2023, there were 855 suppliers who should sign the declaration.

New Supplier Consultation Management

The total number of new suppliers in 2023 was 41. In the process of seeking new suppliers, Inventec formed a "Sustainable Supply Chain Counseling Team" consisting of colleagues from relevant departments such as Design and R&D, Procurement, Component Engineering, and Supplier Management, to conduct the new supplier evaluation based on the following criteria:

• Technology development capability assessment.
• Vendor supply capability assessment.
• Procurement system audit.
• Hazardous Substance Free (HSF) survey.
• Supplier ESG survey.

Responsible Procurement

As a member of RBA and RMI, Inventec is committed to promoting and complying with relevant standards, and publicly announcing Inventec Responsible Minerals Sourcing Statement. Inventec has conducted investigations with the Conflict Minerals Reporting Template (CMRT) since 2011, and during the period Inventec has gradually introduced the automated system and completed the automation of metal refinery compliance verification. In 2023, in line with RMI's requirements, Inventec adopted the latest CMRT and the Extended Minerals Reporting Template (EMRT) to conduct due diligence. Suppliers are required to perform adequate due diligence on their supply chains to ensure that the materials supplied to Inventec do not contain conflict minerals from conflict-affected regions and countries.

Inventec's Responsible Minerals Goals

Supply Chain Risk Management

According to the comprehensive assessment of supplier management risk and material risk, Inventec shortlists the suppliers for annual audit, and conducts the audit in accordance with the internal control procedures of each factory. After the audit, Inventec tracks and guides suppliers to complete rectification or determines to replace them. In 2023, a total target of 103 suppliers were screened out for audit, and the audit completion rate was 100%. 279 issues were identified, and all of them were followed up and rectified by the suppliers.

The audit findings of existing suppliers in 2023

Third-party Assessment for Suppliers 

To meet the supply chain management requirements of RBA, supplier auditors of the factory floor conduct supplier on-site audits based on the latest version of supplier audit criteria covering labor, health & safety, environment, ethics and management systems.

Step.1

Initiating

855 suppliers
 

Step.2

Based on the latest version of supplier audit criteria

• The on-site audit report prepared by the supplier auditor of the factory
• The scores of supplier RBA SAQ (Self-Assessment Questionnaire) filled in by the suppliers

Step.3

Identification results

12 high-risk suppliers were identified

Step.4

Continuous tracking/improvement

2 high-risk suppliers completed the VAP audit in 2023. No priority findings in the audit result, and there are 10 other findings, which are being tracked for improvement.

Sustainable Supply Chain ESG Seminars

In 2023, Inventec organized a total of 5 ESG Seminars for supplier partners to exchange ideas, covering component categories such as Power Supply, Logistics, Fan, Module, IC, and Mosfet. These seminars focused on sharing various topics including renewable energy management, low-carbon competitiveness, and international issues like COP28 and biodiversity. Additionally, the progress and operation of Inventec's supplier management platform were discussed to facilitate the launch of initiatives such as greenhouse gas inventory and aggregation, with an aim to accelerate the transition. Suppliers also shared their experiences and know-how gained from their participation in the international ESG ratings, promoting mutual advancement in the ESG domain.

Inventec Sustainable Supply Chain Summit

To encourage supply chain partners to support Inventec in areas such as quality, cost, delivery, technical capability, service, and the promotion of RBA-related initiatives, Inventec hosts the Sustainable Supply Chain Summit every year. This event invites senior executives from strategic suppliers to participate, facilitating communication and exchange of industry information. Additionally, Inventec's various products and services are showcased and promoted during the summit. In 2023, a total of 316 suppliers and 589 senior executives participated in the summit. The event not only aimed to maintain strong collaborative relationships with supply chain partners but also to foster a shared commitment towards sustainable development with Inventec Group.

Advanced Technology and New Product Exchange

To enable suppliers to stay abreast of advanced technology and new product developments alongside Inventec, and to create opportunities and synergies across the supply chain, Inventec has been inviting supplier partners to jointly hold Advanced Technology and New Product Exchange Forums since 2009. Carrying on this initiative, in 2023, Inventec organized 111 technical exchange forums in collaboration with suppliers to achieve mutual growth.