Management

Based on the nature of procurement (two types) and significance of procurement (three categories, labor service procurement is called “activity”), we implement graded management of suppliers and evaluate suppliers at different frequencies: periodic evaluation and annual audit (two models). In addition, YOKE has also been assisting suppliers to achieve growth and upgrade so that we could collaborate and grow together to propel the industry chain for safety hook lifting chain fittings and high-altitude operation fall-proof safety equipment.

New suppliers must pass our supplier evaluation before transaction. The evaluation criteria include CSR-related management systems, promotion of energy conservation programs, signing of the supplier CSR commitment, establishment of the internal and external grievance boxes, engagement in public welfare activities, and sanctions by competent authorities for violating economic, environmental, human resources, and product laws and regulations. In 2023, a total of nine new suppliers passed the evaluation.

In accordance with the supplier control procedures we re-evaluate special process suppliers every two years, critical component suppliers every 3 years, and non-critical procurement suppliers more frequently if their quality and delivery lead-time meet the standards set by YOKE. The evaluation frequency is determined based on the significance of procurement by amount (one evaluation every 5 years for transactions amounting to NT$10 million in the past year). In December 2023, a total of 55 suppliers were re-evaluated, and 100% of them met the requirements. By the end of 2023, a total of 255 suppliers have passed the evaluation, though we only traded with only 219 of them.

A supplier has to score 70 or higher in order to become a qualified supplier and registered in our list of qualified suppliers. Suppliers who scored 69 or lower were required to rectify their given issues or propose plans for rectification within 45 days to be eligible for the re-assessment process. Among those that failed to score 60 (Group E), they were required to submit their plans for rectification within 2 months and YOKE would assess the supplier 4 months later after the issue in question has been rectified. Suppliers who fail to achieve the required rectification shall be penalized in accordance with our procurement strategy - to have their order quantity reduced or remove them from our list of qualified suppliers. In 2023, a total of 55 suppliers were evaluated and passed the evaluation, with an average score of 80.28.

The annual supplier audit only applies to critical and non-critical suppliers and the audit is conducted in the form of a written review of their quality, price, delivery, and service (QPDS). This audit takes place once a year and QPDS results of suppliers are reflected upon and discussed on a yearly basis. In order to be added to our list of qualified suppliers, suppliers must score 65 or higher in their annual audit. Suppliers receiving less than 65 marks in the audit will be identified as targets for on-site audit and improvement guidance. They must make improvements within two months, and the effectiveness of improvements is verified within four months. We will take action on those who fail to make meet the requirements after improvement based on our procurement strategies. In 2023, there were 255 raw material suppliers in total, 233 of them were qualified suppliers, 219 of them were actually audited, and 98.63% of them passed the audit.