Implement supplier management to fulfill corporate social responsibilities
Supplier Selection/Evaluation/Reward and Punishment
The selection of suppliers is based on set criteria. Qualified suppliers must also undergo on-site audits or host review meetings to examine their performance. A high-priority supplier management list is maintained by Alpha based on each department's evaluation of vendor performance in five domains: quality, cost, delivery, service and technical. The evaluation outcomes are used as the basis for adoption of key parts and to motivate suppliers.In 2022, the average ratio of excellent (A) and good (B) suppliers was 98.46%, and the ratio of inferior (E) suppliers was 0.58%. Alpha offeredguidance to these poor (E) grade suppliers and demanded them to make improvements, while ongoing guidance was also provided toacceptable (C) and inferior (D) grade suppliers to address their problems in order to improve the overall quality of delivered products.
Supplier Status Evaluation
The Supplier Evaluation Operation Guidelines set the quarter as the statistical interval. The evaluation results are reported in the following month of each quarter. All key Alpha suppliers (involving large quantities and transaction amounts) are evaluated by the Purchasing,Engineering, and QA units in terms of quality, cost, delivery time, service, and technical capability (see table below). Those with a score of less than 60 will be listed as disqualified suppliers. If the score was lower than 60 points, it was listed as Non- recommended supplier.In 2022, 151 suppliers were evaluated, and 0 suppliers were listed as non-recommended suppliers. In 2022, no suppliers were suspended from new material transactions.
Supplier Purchasing Contract
To build a green supply chain, Alpha suppliers are required to adhere strictly to our “Hazardous Substance Guidelines.” Test report from independent third-party bodies must be submitted where necessary. Source management is practiced for supplier production processes,green product design and hazardous substances. Green management principles have also been incorporated into the supplier management system. In 2022, material suppliers signed a "Supplier Procurement Contract" with 56 companies. In the future, Alpha will continue to sign purchasing contract guarantees with the suppliers that we deal with to ensure the products we design and manufacture can also comply with customers' RoHS-related international regulatory requirements and fulfill the goal of building a Green Supply Chain.
Corporate Social Responsibility Audit
Alpha Networks aspires to form a sustainable partnership with our suppliers; besides valuing the suppliers' product quality, shipping date,and price, we also stipulated the Supplier Corporate Social Responsibility Management Operational Regulations based on the Code of Conduct - Responsible Business Alliance (RBA), hoping to fulfill corporate social responsibilities with our suppliers, implement risk management and operational sustainability. New suppliers must sign a supplier statement of commitment to ensure compliance with RBA requirements and fill in the Supplier RBA Self-Evaluation Questionnaire. The aim is to understand the suppliers' performance in labor,
health and safety, environmental protection, management system, and business ethics before launching on-site audits according to the supplier category and follow-up supervision, in turn making sure that the shortcomings are adequately improved. In 2022, Alpha Networks conducted a supplier audit on 56 suppliers.
Disclose the source of raw materials – Banning the use of conflict minerals
Alpha is committed to monitoring the issue of conflict minerals, and to investigate the sources of gold (Au), tin (Sn), tantalum (Ta), Tungsten (W) and Cobalt (Co) minerals to ensure they are “conflict-free.” We promise to form long-term partnerships for mutual success with our suppliers. We expect and require suppliers to disclose the refineries and mines they work with.Suppliers are also asked to comply with theRBA Code of Conduct in fulfilling their corporate environmental and social responsibilities together. Suppliers have been required to signthe “Declaration on Non-use of Conflict Minerals” since 2013.