Supply Chain Overview
As the largest manufacturer and supplier of laptop battery cells worldwide, Simplo produces more than 200 million battery modules annually. Through supply chain management, we are committed to communicating with suppliers, and we jointly fulfill ESG corporate social responsibility, and practice responsible procurement in the environment, society, governance and ethics. In 2022, Simplo had 399 suppliers; of these, 391 were local suppliers and 8 were non-local. The local procurement amount accounted for 98%. To ensure supply stability, Simplo carefully screens and selects new suppliers and is committed to developing long-term partners, to jointly build a sustainable supply chain with stable development in accomplish sustainable corporate management.
New Supplier Assessment
Simplo has established a complete supply chain management system. In 2022, 100% of new suppliers had been selected in accordance with the "Supplier Management/Assessment and Evaluation Procedure". We implement supplier evaluation procedures in accordance with the quality, environment and occupational health and safety management systems and RBA specifications required by ISO 9001, ISO 14001, and ISO 45001. All new suppliers of Simplo must be qualified in terms of quality, delivery time, price, and engineering technical competency, with good market evaluation, quality and environmental management system appraisal. The disqualified items are required to be rectified before a deadline. Only after the rectifications have been completed, are suppliers listed as new qualified suppliers.
Annual Supplier RBA Audit
As a member of RBA, Simplo should fulfill its supply chain management responsibilities. In 2022, 197 key suppliers are required to sign the "Supplier Statement for Code of Conduct ", with a signing rate of 100%. In addition, in order to meet customer requirements, supplier audits are carried out in accordance with RBA standards. There are 37 planned audits, including 6 on-site audits, 23 document audits, and 8 remote audits. The audit pass rate is 100%.
Supply Chain Management
Simplo investigates suppliers’ promotion of sustainability and carbon reduction through the “Supplier Sustainability Management Survey” as the basis for planning the suppliers’ emission reduction plans in the future. In 2022, the survey was conducted on the key suppliers accounting for 70% or more of the procurement amount, for total 13 suppliers.
Based on the survey results, all of the suppliers have obtained ISO 14001 and ISO 45001 certification; 77% of the suppliers have issued sustainability reports, of which 54% passed third-party validation; 92% of the suppliers have executed carbon inventory, and 77% of them passed third-party validation. It shows that the supply chain has room for development in terms of information disclosure. Simplo will work with supply chain partners to jointly initiate sustainability actions in the future.
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