Overview of Supplier Management
M31 adheres to the concept of sustainable management through a rigorously enforced supplier management system that emphasizes supplier fulfillment of core values in areas such as ethical conduct, environmental protection, workplace safety, and respect for labor rights and interests. During the assessment phase of new suppliers, M31 requires suppliers to provide relevant information and explicitly mandates compliance with the laws and regulations of the countries and regions where they are located. The implementation of this system not only helps to maintain high standards throughout the entire supply chain, but also ensures that suppliers operate in compliance with local laws and regulations, safeguarding regulatory compliance. M31 expects that through this supplier management system, together with partners, to pursue sustainable development and build a partnership ecosystem that meets legal, environmental, and ethical standards.
Supplier Evaluation
M31 adheres to the standards of the “Supplier Management Policy” and “Supplier Management Measures,” collaborating with suppliers to jointly enhance corporate social responsibility. Each year, we conduct comprehensive performance assessment of new suppliers or those who have met the qualifying standards based on the “Supplier Evaluation Form.” The evaluation results serve as a reference for formulating our supplier management strategy and conducting on-site audits where necessary to ensure that the entire supply chain complies with corporate sustainability with relevant laws and regulations. We emphasize assessing the sustainability performance of our suppliers and continue raising standards in order to build strong partnerships and ensure the sustainability of the supply chain. Through this evaluation mechanism, we hope to work together with our suppliers to create an environment that meets high standards of corporate social responsibility and realize the common goal of sustainable development.
New Supplier
Evaluation
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Supplier
Assessment
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Unqualified
Suppliers
Prohibited
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Overview of Annual Supplier Performance Evaluation Implementation
M31 conducts an annual supplier evaluation to ensure the stability and sustainability of our supply chain. The assessment scope includes various aspects of performance such as sustainable operations, quality, delivery efficiency, price competitiveness, service and cooperation, timeliness in handling customer complaints, and the completeness of information management mechanisms. This comprehensive evaluation ensures that our supplier partners align with the Company’s policies and goals at all levels.
In order to effectively conduct evaluations, we have established a dedicated assessment team comprising members from different departments, including procurement, user units, quality management and information, bringing together expertise from various professional domains to ensure the comprehensiveness and objectivity of the assessment. We employ a variety of tools, such as questionnaire surveys and on-site audit reports when necessary, to gain a comprehensive understanding of supplier performance.
In 2023, we evaluated 17 suppliers whose procurement amounts exceeded specific thresholds and all of them met our standards and expectations, demonstrating their excellence in sustainability, quality management, timely delivery, and reasonable pricing.
To maintain a positive relationship with our suppliers, we have established an open and transparent communication mechanism. We encourage suppliers to provide improvement suggestions, and we promptly provide feedback on assessment results to ensure they understand their strengths and areas for improvement. We hold regular meetings to emphasize our mutual commitment and common goals, which helps to maintain a strong and cooperative partnership.
In addition to assessing supplier performance, we actively encourage them to participate in our corporate sustainability programs. By collaboratively setting sustainable development goals with our suppliers, we ensure that the entire supply chain moves towards a more sustainable direction. At the same time, we proactively seek opportunities for collaboration, particularly in the areas of renewable resources and carbon footprint reduction, to build a greener and environmentally friendly supply chain.