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| To ensure all materials and components are compliant with environmental protection requirements, WNC strengthens its supplier management system. It puts environmental protection considerations into its components supplier auditing and inspection processes. In addition, WNC periodically holds supplier conferences to specify its green product standards and regulations. Likewise, WNC integrates its suppliers from upstream, midstream and downstream in order to establish a green supply chain. With an effective source management, WNC works with its suppliers to make joint efforts in building an environmentally-friendly industry. |
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| Green Supply Chain and Risk Management |
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| WNC values not only suppliers’ capabilities in product quality, cost reduction, delivery and technology, but also their green products and social responsibilities. To provide stakeholders with good quality products and services, WNC takes supplier performance and execution of their internal quality management system as a primary evaluation indicator during the supplier authentication process. It requires suppliers to sign and follow WNC’s Standard for Restricted Usage of Environmental Hazardous Substances and other international regulations including RoHS, WEEE, REACH, ErP, Battery, etc. Starting from 2007, suppliers are also required to sign a quality agreement that includes WNC’s green management policies. Up to 2010, we have had 900 suppliers signing the quality agreement and will continue the process with all cooperating suppliers. The process ensures WNC products conforming to customer and regulation requirements for restricted substances and helps WNC reach its goal of a totally green supply chain. |
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| Furthermore, WNC puts standards for controlling environmental hazardous substances into its incoming material inspection flow. The raw materials that are not in compliance with standards will be defined as nonconforming products and WNC will require suppliers to offer corrective and preventive measures to immediately prevent their recurrence. All endeavors are to effectively reduce the environmental pollution caused by scrap electronic products, which have an indirect negative impact on human health. |
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| Suppliers signing quality agreement during 2007-2010 |
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| To fulfill social responsibilities and play a positive role to guide suppliers, WNC has announced that it does not accept metals and minerals from armed conflict, illegal mining and poor working conditions. Since 2010, WNC have required a total of 68 suppliers to sign the letter of commitment to say no to conflict minerals based on the level of risks involved in obtaining raw materials, so as to carry out corporate responsibility for sustainable operations. |
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| Regional Distribution of Suppliers |
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| WNC’s suppliers are mainly from Taiwan. The major categories of supplied raw materials and components include the integrated circuit, circuit board, display panel, electromechanical component, mechanical component, packaging materials and so on. |
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| Regional Distribution of Suppliers |
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| Supplier Auditing & Training |
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| In today’s industrial environment, suppliers do not only provide raw materials, but also play an important role as partners in working together for product and service enhancement. Therefore, WNC attaches great importance to interact and cross-learning with suppliers. In addition, it shoulders the responsibilities for guidance and assistance to suppliers while providing them useful information. |
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| To establish Green Supply Chains, WNC stringently requires its suppliers to sign the quality agreement to comply with WNC’s Standards for Restricted Usage of Environment Hazardous Substances. When necessary, suppliers are required to offer test reports from a third party. WNC implements source management regarding the suppliers’ manufacturing process, green product design and usage of environmentally hazardous substances. |
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From 2006 to 2007, WNC developed an Internet Supplier Portal to ensure that the information between WNC and its suppliers is timely and effectively communicated, collected and integrated. Meanwhile, it assists in reducing the waste of time and resources caused by paper delivery. WNC hopes that it can learn and develop together with suppliers, and finally realize many win-win achievements in efficiency. |
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E-Procurement system: With an Internet Supplier Portal and a JIT system, material demands are shown immediately and transparently to suppliers to respond to changes in demand as early as possible. In addition to lowering the risks resulting from supply chain disruption or excess inventory of raw materials, it can also further monitor delivery status and payment conditions. The environmental regulations and directives that suppliers should comply with are highlighted in the portal home page, and will be sent to corresponding suppliers together with the order. In this way, it helps urge the suppliers to ensure that their products are in compliance with all relevant environmental standards on prohibited substances and RoHS specifications recognized by WNC, so as to promote the sustainable development concept of keeping a proper balance between economic growth and environmental protection |
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E-Kanban system: The e-Kanban system can effectively improve quality control efficiency while working together with suppliers. If there is a lack of specific raw materials or any manufacturing bottleneck, WNC and its suppliers can hold timely discussions to solve the problems as soon as possible. |
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| To enhance the quality of suppliers, WNC performs Vendor Performance Evaluation quarterly to assess overall performance with indicators concerning quality, price competitiveness, lead time, flexibility, service and so on. Through investigation and on-site audits, if there is any non-compliance with WNC’s regulations, WNC will work together with suppliers to set up improvement plans. To ensure that the improvement plans can be carried out properly, in addition to setting up definite goals and schedules for improvement, WNC also assigns professional officers to provide suppliers with assistance, training and supervision. Besides regular performance evaluations, WNC holds quarterly business review meetings with high-ranking directors from suppliers for product and service quality reviews and outlooks. They can also update industry trends for both sides to fully grasp market variations and launch the right product and service that meets market demands. |
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| Partnership with Suppliers |
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| Developing long-term partnerships with suppliers has always been a very important operations policy of WNC. Suppliers play an important role in raising sustainable competitiveness in any corporation. WNC gives awards and expresses its sincere gratitude to suppliers for their outstanding performance and special contributions in its annual supplier conference. Since corporate social responsibility has already become the common concern that corporations must face for sustainable operations, WNC gives encouragement to suppliers to join together in achieving these mutually beneficial goals. |
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| WNC gives awards to suppliers for their outstanding performance |
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| Customer Satisfaction |
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| WNC takes the customer partnership as one of its core values. To strengthen customer trust and satisfaction with WNC’s products and services, WNC is dedicated to reinforcing industry competitiveness and market share. The customer service department implements the assessment mechanism of the customer’s level of satisfaction, surveying and analyzing customer feedback regarding product quality, technology, lead time and other aspects. The analysis of the reasons why customers are not satisfied will be sent to relevant units to seek and execute improvement plans and to then follow-up on results. This is one of the primary reasons WNC has consistently obtained awards, recognitions and praises from its customers. In 2010, WNC issued 2210 conformance statements for the products that were manufactured with regard to customer requirements and the regulations of the Restricted Usage of Environmental Hazardous Substances, showing the endeavors and achievements WNC has strived for in meeting with customer requirements. |
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| In order improve and stabilize the quality system. WNC continuously advances quality promotion and verification measures. After obtaining ISO 9001 and ISO/TS 16949 certification in 2004 and 2005 respectively, WNC has performed internal auditing and inspection at regular intervals each year. Furthermore, according to the requirements of international standard certifications, WNC periodically implements external auditing and tracking for updating certifications to ensure the efficiency of its quality management system. At present, WNC has passed the verification and authentication of ANSI/ESD-S20.20-2007 standard in June, 2011. |
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| To establish a platform for all units to continuously improve operations and flows, WNC has introduced the Lean Six Sigma (LSS) project from 2006. Taking zero defects as its goal, this Lean Six Sigma (LSS) system teaches WNC employees problem-solving concepts, procedures and tools to improve operational flows including product design, materials management, production procedures, operations management, administration management, capital management, project management, etc. All endeavors are taken to enhance the overall operations level, so as to reinforce WNC’s competitiveness and customer satisfaction. |
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| Since providing a wide range of products in diverse categories, WNC holds customers all around the world. Based on the total turnover, customers from the Americas contribute the highest proportion, which is nearly 50% of the total. The Asian market is ranked second, mainly relying on China, Taiwan and Japan. Meanwhile, the market of Europe and other areas keep growing at a steady rate. |
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| Regional distrubution of WNC's major customers
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