CSR > Supply Chain PoliciesCSR > Supply Chain PoliciesDescriptions of the Supply-chain
The CHC Supply Chain is formed according to the needs of the GBFS Cement Division and Resource Reutilization Division by signing contracts with contractors that can supply materials on a long-term basis to ensure reasonable costs for all products.
Supply Chain Policies
The selection of suppliers
The following four phases will be gradually implemented to be regarded as positive extra points in the selection of suppliers with the addition of the issue of paying attention to corporate social responsibility.
1. The promotion phase: Promotion materials were distributed by e-mail, fax, and mail by December 31, 2014.
2. The commitment phase: It is estimated that this phase will be completed by December 31, 2015.
3. The reciprocating phase: The year 2016 is scheduled for this phase.
4. The implementation phase: Implementation will be in effect as of January, 2017.
The main items for the selection of suppliers
Relationship changes among suppliers
1. 2013 was the base year for CHC’s supply chain management.
2. As of 2014, the changes of the numbers of newly-added or suspended suppliers in comparison with those of the base year would be disclosed annually so that the stakeholders would be aware of CHC’s suppliers’ attention regarding the additions or suspensions of CSR issues such as environmental protection, working conditions, human rights, the society, etc. The disclosures would serve as bases for CHC to continue to enhance and promote the suppliers’ focus of corporate social responsibility.
The percentage of procurement expenditures
The 2014 total annual expenditures for the enterprises in the CHC Supply Chain were over N.T.$3.3 billion ( a total of eight items).
| Items | Total expenditures | Ratios in 2014 | Ratios in 2013 |
| 1 | Raw materials | 37.34% | 39.55% |
| 2 | Materials | 1.49% | 1.62% |
| 3 | Equipment maintenance | 0.77% | 1.27% |
| 4 | Collaboration of all kinds of operations | 27.71% | 18.04% |
| 5 | Monitoring of inspection | 0.11% | 0.16% |
| 6 | Sales services of products | 0.76% | 0.98% |
| 7 | Operations of transportation | 20.38% | 25.65% |
| 8 | Operations of heavy machinery | 11.44% | 12.73% |
Green Procurement
To reach the goal of green consumption for all, a special selection item of whether to purchase products with labels that state they save energy as well as water, and are eco-friendly or green construction materials and so on has been listed in the purchase application forms of the ERP purchasing system since 2012; furthermore, a function to search websites that sell green products has also been added on CHC’s website to remind CHC employees to select all kinds of green products at all times to allow them to have a wider range of choices in addition to the public contracts for supplies, such as eco-friendly toner cartridges, hand cleansers, hand cream, recycled water bottles, recycled paper, and lighting fixtures.
The total amounts of green procurement reached N.T.$268,550 in 2012, N.T.$ 3,060,000 in 2013, and N.T.$ 5,846,908 in 2014. The growth in expenditures clearly demonstrated CHC’s efforts in promoting green procurement. CHC’s green procurement in 2014 included computers and their peripheral products with the Energy Star label, eco-friendly toner cartridges, recycled paper, paper towels, natural cleansers, T5 lighting fixtures, CHC’s own GBFS cement, etc.
