Supply Chain Management

Moving Towards A Sustainable Supply Chain

Suppliers are extremely important strategic partners to Wistron. We look forward to working with the supply chain towards a more sustainable future. Therefore, we have listed sustainable responsible procurement as one of the six sustainable development strategies. Through institutionalized management and deepening cooperative relationships with suppliers, we are committed to building a highly resilient supply chain system to respond to changes in the external environment while reducing risks posed by the supply chain.
Wistron is committed to integrating sustainability into the procurement management process by referring to the seven core subjects of the Sustainable Procurement Guide (ISO 20400): organizational governance, human rights, labor practices, and the environment, fair operating practices, consumer issues, community involvement and development, etc.; risk management, competitive advantage and cost optimization The three major types of sustainable procurement driving forces and compliance with the RBA Code of Conduct have been approved by the board of directors to formulate sustainable procurement policies to reduce procurement risks and create opportunities to achieve the purpose of sustainable supply chain management.

Supply Chain Management Framework and Overview

 

Sustainable Supply Chain Strategy

Wistron values cooperating and growing with our suppliers on the grounds of sustainable purchasing policy and supporting customer demands. As such, we have established a Sustainable Supply Chain Strategy, which involves optimizing our supplier’s core competitiveness, deepening regional and strategic cooperations, and strengthening our supply chain’s sustainable resilience. We hope to strengthen our partnerships to create new opportunities together.
 

• Optimize Core Competitiveness of Suppliers: Wistron has established a global procurement unit and supplier quality management unit for supplier management. The units control and manage standards and procedures for supplier selection while focusing on partnerships and growth together. They conduct risk evaluations, performance evaluations, audit guidance, education and training, and organize supplier conferences to ensure sustainability is rooted in the daily management of our supply chain.
• Deepen Regional & Strategic Cooperation: In addition to continuously enhancing suppliers’ core competitiveness, Wistron focuses on developing local supply chains and green, low-carbon supply chains, which include: (1) Continuously reducing external environmental impacts and costs while prioritizing local supply chains and deepening regional strategic cooperation; (2) Implementing green, low-carbon supply chain programs and guiding carbon-intensive suppliers towards carbon reduction and net-zero targets, striving to minimize resource and energy consumption.
• Strengthen Supply Chain Sustainable Resilience: In the face of supply chain management risks, we have established a supplier data management platform and a supplier digital learning platform through digital transformation to enhance the effectiveness of management. For our supplier data management platform, we regularly conduct supplier surveys to accelerate data collection and data analysis to identify our risks. For our supplier digital learning platform, we strengthen connections and engagement with suppliers through ad hoc training as well as immediate and consistent communication of our goals and sustainability-related information. We seek to ensure our suppliers fulfill their commitments, comply with the RBA code of conduct, and continue to improve.

 

Governance Structure

To deepen corporate sustainability and fulfill our corporate social responsibility, Wistron Sustainable & Responsible Procurement is led by the Board of Directors as the highest decision-making body for promoting sustainability. In 2019, the Corporate Sustainability Development Committee was established under the Board of Directors. It reports the results of sustainability efforts and future work plans to the board at least twice a year. The board supervises the rollout and outcomes of various sustainability projects. Material issues require prior approval from the board before execution.

• Sustainable Supply Chain Management Organization

Wistron Value Chain

Wistron is a leading company in the global ICT (Information and Communications Technology) industry and responsible for the design, manufacturing and assembly of electronic products and other services. 
The upstream and midstream of the industry chain consists of component suppliers, while the downstream consists of various customers groups. We vertically  integrate the industry chain through customer needs and are dedicated to providing competitive products.

Supply Chain Overview

Taiwan is a major supplier of information products worldwide. As a pioneering global OEM, Wistron is based in Taiwan but extends our reach globally, providing customers comprehensive and convenient software, hardware and one-stop comprehensive system services. We have established a robust global production base and service network, with coverage spanning across the globe. Wistron's main suppliers separated into four major categories: electronic parts, mechanical parts, maintenance repair operation, and logistics suppliers. In 2023, Wistron traded with 2,152 suppliers. To maximize management efficiency, suppliers are classified in into tiers. Tier 1 suppliers are those who have reached six transactions per month and have reached over NT$1M in the current year. In 2023, there were 1,250 tier 1 suppliers. Based on the transaction amounts and significance, we further defined 431 tier 1 suppliers as significant (Note 1). To mitigate risks in the supply chain, we expanded our management scope to include 281 non-tier 1 suppliers. Among them, 162 significant non-tier 1 suppliers (Note 2) were identified and included in our management efforts to help mitigate risks within the supply chain.

• Note 1 : Significant tier 1 suppliers : Including critical suppliers - high proportion of turnover (top 80% of annual transaction amount); ability of technology pioneering; the only source of supply is irreplaceable; high-risk suppliers - SAQ score below 80.

• Note 2 : Significant non-tier 1 suppliers : 1. Agency transaction with SAQ score below 80 (Potentially high-risk suppliers) 2. The upstream supplier of the customer's designated trading supplier.

• 2023 Supplier Distribution by County/Region

• 2023 Suppliers by Classification, Significance and Risks