Supplier Management Policy

Our company aims at sustainable operation. Through the implementation of the existing supplier management system, we require suppliers to cooperate, follow relevant regulations on environmental protection, occupational safety and health, labor human rights and other issues, and jointly practice corporate social responsibility to create sustainable value. Our company's supplier management policy is as follows:

• Give priority to suppliers who have obtained quality management system certification (such as ISO 9001, IATF 16949, ISO 14001, ISO 45001, etc.).
  
• Comply with the laws and regulations of all operating locations while taking into account customer needs.
  
• Fulfill corporate social responsibility and follow the requirements of conflict-free minerals.
  
• Incorporate corporate social responsibility practices into the supplier management mechanism to drive the sustainable development of suppliers.
  
• Through full communication and practical exchanges, cooperate with each other and strengthen the capabilities of suppliers.
  

Supplier Management

In order to establish a long-term and stable partnership with suppliers, Viking Technology has established a "supplier management procedure" in the hope that through clear management and operation methods, the supplier's delivery time, quality, technology and hazardous substances can meet Viking's expectations and customer needs.Viking's manages and guides raw material suppliers according to the following three stages.

Supplier Selection

When selecting new suppliers, Viking uses three types of evaluation methods, including written evaluation, sample testing, and audit evaluation. Viking selects the appropriate method based on the raw material properties, supplier size, and status. After the evaluation results are qualified and approved, they will be included in the qualified supplier list and subsequent management will be implemented.

1.Written evaluation:During the written assessment, suppliers must complete the supplier questionnaire and provide ISO 9001 quality management system certification for Viking's assessment and review.


2.Sample testing: When new suppliers are conducting sample approval, they must provide a "Safety Data Sheet (SDS)" and "Prohibited Substance Certificate (a third-party notary unit testing certificate document)".


3.Audit evaluation: After the supplier returns the quality system evaluation form, Viking convenes relevant departments to form an audit team to audit the supplier's quality system and production process to ensure that the quality of the products provided by the supplier meets the requirements of Viking and customers.

Supplier Assessment

In order to obtain information on the quality and delivery of raw materials in real time, Viking evaluates the main raw material suppliers approved by the company on a monthly (quarterly/half-year) basis to avoid external uncertainties and risks that may impact operations or production. The evaluation items include four indicators. In addition to deducting points for non-compliance, a scoring mechanism is also established to encourage suppliers to propose self-improvement. The four evaluation indicators are as follows:

1.Quality: Scoring for raw material quality, customer complaints, market returns, customer production interruptions, change notifications, and quality certification.


2.Cost: Scoring for whether the price reduction of raw materials meets the target.


3.Delivery: Manage delivery punctuality and coordination to avoid excessive transportation caused by suppliers due to production raw material delivery or other reasons; prevent improper purchase cost transfer, and ensure that suppliers can respond to emergencies when encountering natural disasters.


4.Service: Scoring is given based on the supplier's delivery of quality-related reports and support for urgent matters.

Supplier Continuous Improvement

Perfect supply chain management is the key to providing customers with good service and stable quality. In this regard, Viking proposes an annual supplier audit plan at the beginning of each year, and records it in the supplier annual audit plan table for regular implementation. The audit scope includes quality systems, processes, control of hazardous substances and corporate social responsibility. The audit results are divided into four levels: A (excellent), B (qualified), C (conditionally qualified), and D (unqualified). Suppliers who fail to meet the requirements must propose improvement measures, and Viking will provide guidance and review as needed.

In recent years, corporate social responsibility has become a crucial issue for companies pursuing sustainable operations. To mitigate the potential impact of supply chain risks on corporate operations, Viking Technology developed the "Supplier Social Responsibility (SA8000)/RBA/Integrity Commitment" and "Supplier Social Responsibility Survey" in 2017, introducing a supplier management mechanism. Going forward, we will continue to strengthen supplier risk management and work with our business partners to fulfill our corporate citizenship responsibilities.