The Chicony supplier management policy can be divided in two categories:
1. Current suppliers
Chicony conducts evaluations and scores current suppliers on quality, delivery date, price, defect-free rate each month, quarter, or year. It also increases the score ratio (40%) of the abnormal products and asks the control unit to issue a warning and respond instantly. Supplier management also makes periodical evaluation (monthly, quarterly, yearly), rewards the good and removes the bad. The SCAR management mechanism (Supplier Corrective Action Request) is used to deal with warnings about abnormal products so that the companies and Chicony engineering teams can find solutions and make improvements without delay. For serious defects, Chicony requires VQA to call a review meeting that includes the purchasing, engineering and RD departments to monitor and make improvements on material key production processes.
2. The introduction of new suppliers
Unless the customer requests a single material source, each type of material will be available and provided by at least two different suppliers. Chicony will score the suppliers of the same material for reference and future cooperation.
Non Conflict Mineral Commitment
In response to international enterprises and the calls of human rights groups based on the CSR spirit, Chicony joins their actions in condemning the mining activities of expensive metals (gold, tungsten, tin, tantalum) in the Congo and the neighboring countries that are involved in the illegal use of child labor for mining. In addition to making the【no-conflict metal announcement】on the website, it also asks all suppliers to reject the use of conflict minerals and make written commitment to this effect.