Mirle’s supplier management policy starts with the creation of a supply chain with a friendly environment, with emphasis over social responsibilities, and sustainable development of the human rights of workers. It is specified on each purchase order that the RoHS policy must be followed and highly polluting surface treatment is prohibited both internally and externally. All suppliers are asked to sign the “Supplier Social Responsibility Commitment” to be as friendly to the environment as the Company and to value their social responsibilities.
Substantial supplier management practices
Mirle has more than 2,000 suppliers. To be on a par with environmental protection laws and regulations in countries around the world, the Company formed the Green Environmental Protection Promotion Group in 2005 and defined the regulations over RoHS for its products and expected cooperation from suppliers as part of the joint effort to fulfill their responsibilities in complying with regulatory requirements, protecting the Earth and the environment, and minimizing impacts on the ecosystem. Starting in December 2005, suppliers shall provide “Lead-free Certificate” or the “RoHS Commitment Warranty” for their products to be randomly inspected by Mirle upon receipt to ensure that their products meet environmental protection laws and regulations in countries around the world.
The Company’s suppliers need to be evaluated in compliance with the defined “Supplier Evaluation Procedure” on six major domains, namely operational management, environmental safety, social responsibility, quality system, technical standard, and manufacturing capability. Once written review and site accreditation are completed in compliance with the procedure, qualified suppliers are selected and educated on compliance with applicable laws and regulations.
The Company has the Audit Group and Counseling Team in place. Besides audits as needed, each month, specific suppliers are invited to attend the quality meeting and engage in bilateral communication (such meetings were attended by suppliers about 105 times throughout 2023). Deficiencies are discussed and corrected. Suppliers are evaluated as a whole each year. For those falling short of meeting the criteria set by the Company internally, the Company may suspend purchases from them or cancel their approved status. Purchases may only be resumed after they have made exact corrections so as to ensure optimized processes and to help suppliers grow together with Mirle.
The Company holds related training as needed where collaborative suppliers are invited to take part. Such training covers workplace health and safety, related professional processes and procedures, and testing and use of green and environmentally friendly materials, among others. During process supervision, efforts need to be made to ensure the safety of employees in the workplace and the stress of related regulatory requirements.
To ensure quality and sustainable operation, the Company evaluates the quality of goods delivered, the lead time, service, and sustainable performance of suppliers according to internal regulations each year. Outstanding ones are recognized and given preferred payment terms and are prioritized for purchases as rewards for them.
