Supply Chain Management

CTCI Industry Chain

CTCI Sustainable Supply Chain Management Framework

Supply Chain Code of Conduct

Sustainability Risk Investigation and Assessment

▼ Risk Assessment over Sustainability of Supply Chain 
2016 2017 2018 2019 Target
Tier 1 vendors Number of vendors in survey 690 513 307 -
Reply rate 49.1% 70.8% 75.2% 80%
Tier 1 critical vendors Number of vendors in survey 240 122 85 -
Reply rate 100% 100% 100% 100%
Tier 2 critical suppliers Number of vendors in survey 963 949 570 -
Reply rate - 192 49 -
In 2018, we requested our Tier 1 critical vendors to assist in the investigation in order to increase the reply rate.
▼ Five Aspects of Auditing

▼ Vendor Sustainability Risk Assessment Result
2016 2017 2018
Tier 1 vendors Numbers of high-risk vendors 69 34 5
High risk ratio 6.9% 6.6% 1.6%
Tier 1 critical vendors Numbers of high-risk vendors 25 0 1
High risk ratio 10.4% 0% 1.2%
Tier 2 critical vendors Numbers of high-risk vendors - - 1
High risk ratio - - 2.0%

Enhancement of CSR Awareness in Vendors

CTCI held the annual Supplier Meeting in 2018, sharing the benefits and achievements of CSR with the suppliers and invited them to cooperate with CTCI's policies to expand the implementation of corporate social responsibility benefits. 

▼ Supply Chain Management KPI
2018 Target Level of completion Completion Rate 2019 Target
Signing Vendor's Commitment on Corporate Sustainable Management Among the suppliers in 2018, 575 new vendors have been fully signed, and 85 critical vendors have been signed. 84.4% Tier 1 vendors in fiscal 2018 have been signed. 65.5% of total vendors with PO/ contract in 2018 have been signed. 84.4% of Tier 1 vendors. 65.5% of total vendors with PO/Contract All tier 1 vendors in 2019 have signed the commitments; 80% of vendors with PO/contract in 2019 have signed the commitments.
Supplier sustainability research; 75% of Tier 1 vendors survey completed Questionnaire recovery rate 75.2% 100% Supply chain sustainability survey completed 80% of tier 1 vendors
Establish an vendor evaluation system and SOP that can assess the capabilities of vendors
  • A total of 222 assessments were completed in 2018 The evaluation procedure has been announced in a new edition, and the content and conditions of the evaluation have been revised.
  • The online evaluation system is in the final phase and will be launched soon.
100% "The online evaluation system is officially launched, and at least 80% of the assessments are completed. "
Achievement rate of auditing CSR high risk vendors: 100% Since it is defined as critical vendor for high-risk CSR audits, 2017 did not find high-risk critical vendors, so only three tier 1 vendors were selected for CSR visit audits. 100%
  • All of CSR high-risk vendors have an CSR audit
  • Select other 5 vendors for CSR visit audits
Guide 3 more suppliers to make them qualified vendors for overseas projects 3 3 (become qualified vendors for Patronas) 100% Close (Until now, all willing vendors finished their application.)
1. Convene supplier meeting Expanded the supplier meeting, the number of manufacturers invited more than twice as many as last year 100% Continue to handle the supplier meeting every 2 years
2. Formulating regulations for the CSR Vendor Awards The CSR Awards Procedure is still being studied. Still being studied Completion of the CSR Awards evaluation procedure and announced at the next Suppliers Meeting