Supplier Management

Supplier Management

Edison Opto has established a “Supplier Control Procedure” and discloses its “Supplier Control Policy” on the website, requiring suppliers to comply with relevant standards regarding environmental protection, occupational safety and health, and labor rights. The company’s procurement documents highlight its environmental policy—“Cherish resources, comply with regulations, prevent pollution, and continuously reduce carbon emissions”—continuously urging suppliers to comply and to build a green supply chain aimed at environmental protection, safety, health, and sustainable development.

Edison Group conducts annual regular and irregular supplier evaluations focusing on quality, delivery, and service. Based on evaluation results, suppliers are classified to determine the level of future collaboration.

In 2024, Edison Group conducted on-site, online, and document audits of 44 suppliers. Audit items included quality systems, design control, quality assurance, document control, supplier management, equipment calibration, hazardous substances, and risk management. Based on actual deficiencies identified, follow-up improvement progress was tracked to jointly enhance quality, technology, process efficiency, yield, and strengthen environmental, safety, and health performance, thereby continuing to implement effective supplier management.

Supplier Evaluation

Regular evaluations are conducted on three categories of suppliers (raw materials, outsourced processing, and external vendors) for quality and environmental performance, following the “Supplier Control Procedure.” The approach includes:
1. Prioritizing suppliers with ISO9001 quality management system certification and ISO14001 environmental management system certification to ensure raw materials purchased meet quality and environmental standards.
2. Assessing whether suppliers have records that negatively impact the environment or society, avoiding business with those conflicting with Edison Group’s sustainability policy.
3. In addition to R&D capability, delivery, quality, yield, and pricing, evaluation items include environmental policies and objectives, quality and environmental management systems, RoHS compliance, corrective and preventive actions, and staff training, based on the supplier evaluation form.
4. Suppliers rated as qualified are listed in the “Approved Supplier List.” Grade A suppliers receive procurement priority and preferential rights for new product manufacturing. Suppliers rated Grade C are subject to guidance; if rated C for two consecutive months, they are removed from the approved supplier list.

Supplier Audits

1. Edison Opto forms audit teams, with members required to undergo ISO internal auditor or lead auditor training.
2. Regular and ad-hoc audits are conducted on supplier products and processes to ensure compliance with original requirements.
3. Audit and evaluation indicators are established for “product safety, regulatory compliance, quality yield, on-time delivery, quality management system certification, and sustainability performance,” with risk scores assigned for analysis.
4. Audit results are classified into four levels: Priority (urgent improvements required), Major Nonconformance, Minor Nonconformance, and Observations. Suppliers are required to develop and implement corrective action plans for all levels of nonconformance, with continuous follow-up to ensure improvements are made.