Supplier Management

Supplier Management

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(I) Supplier Management Policies

Weltrend has long perceived suppliers as important partners and maintained long-term cooperative relationships with them. In addition to ensuring the quality, delivery time, price and service capability, suppliers are required to implement environmental protection policies, improve labor safety and health, pay attention to work and human rights, fulfill their corporate social responsibilities, and assist and urge upstream and downstream manufacturers to enhance green competitiveness and risk management, thus creating sustainable business opportunities. 


We will fulfill the following management responsibilities:

• Manage supplier quality capability, cost leadership capability, delivery capability, service team capability, and sustainability capability to enhance competitiveness. 

  •  Treat suppliers as partners, guiding them toward long-term cooperation to jointly establish a sustainably developing and stable supply chain.
  •   Ensure that products do not use conflict minerals from conflict-affected regions.



    (II) Supply Chain Management

    • Require suppliers to implement diversified material sourcing management to reduce the risk of supply shortages in the event of extreme weather or major natural disasters.
    • Use certified conflict-free minerals and require suppliers and their supply chains to avoid using conflict minerals from conflict-affected regions.
    • Respect and protect trade secrets, patents, and intellectual property rights.
    • Commit to ethical, transparent, and responsible business practices, prohibiting the acceptance of any form of improper benefits.

    (III) Conflict Minerals Management

    Conflict minerals" refer to rare metals such as gold (Au), tin (Sn), tantalum (Ta), and tungsten (W) produced in the Democratic Republic of Congo (DRC) and its neighboring countries (Uganda, Rwanda, etc.). Weltrend declares and commits to rejecting the use of metals from conflict-affected areas and requires its suppliers to adhere to the following:

    • Do not use conflict minerals—gold (Au), tantalum (Ta), tin (Sn), and tungsten (W)—originating from the DRC and its neighboring countries.
    • Require suppliers to avoid using conflict minerals from the DRC and its neighboring countries.
    • Instruct suppliers to trace all products that may involve conflict minerals and conduct source investigations to ensure that no illegal conflict minerals are used
    • For non-conflict minerals, require suppliers of cobalt-containing materials to disclose the smelter of their cobalt sources, ensuring that the mining sources of their cobalt do not violate human rights.

    (IV) Supply Chain Management Methods

    1. Evaluation of new manufacturers:Suppliers who meet our requirements in terms of quality, finance, price, process, technical aspects, and labor and human rights can be our suppliers.
    2. Evaluation and grading of qualified suppliers:In accordance with the Supplier Management Regulations, the Company implements a grading system based on the evaluation results, to provide reference for procurement. For suppliers whose scores are lower than the Company's requirements, the Company requires them to improve until they meet the requirements. In serious cases, the Company may stop purchasing or cancel the qualification of qualified suppliers.
    3. Supplier workflow change management:The supplier shall notify the Company in advance and obtain the consent of the Company before changing its workflow.
    4. Supplier risk management:The Company requires suppliers to have contingency plans and procedures for the products and services they provide to ensure continuous operation and alleviate the impact of shortage of materials on the Company.


    (V) Hazardous Substances Management

    Weltrend is committed to continuous reduction of hazardous substances to meet client and regulatory requirements. In accordance with the environmental protection laws and regulations across the world, the Company has formulated regulations for the management of hazardous substances for all green products. Moreover, the Company has been certified by the IECQ QC080000 management system and requires suppliers to promote joint compliance with environmental protection laws and regulations to safeguard the global environment and reduce the impact on the ecosystem.

    (1) Environmental management substances:

    We refer to RoHS2.0, EU REACH, China RoHS and other environmental management substances regulated by our clients. These harmful substances exist in direct materials, packaging materials, products, manufacturing process, manufacturing process accessory materials or may enter the products. It is necessary to control whether these harmful substances are contained in the product, the amount contained, the site of use, and the purpose, etc.

    (2) Prohibited substances:

    Prohibited substances refer to substances that are prohibited from being used in the manufacturing process of parts or components, whether they are intentionally added or naturally present. The minimum concentration limits and test methods for these substances are regulated in the relevant legal regulations. All prohibited substances are not allowed to be added intentionally, even if the added content does not exceed the regulatory limit.

    (3) Green products:

    All of our existing halogen-free products comply with regulations and client specifications.


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