Supplier Management

Supplier Management Policy

Health, Safety, Sustainability, Integrity
In order to carefully evaluate suppliers and establish close cooperative relations with suppliers, Chao gang Cheng completed the Supplier Management Standard Operating Procedures in November 2021 to ensure that the purchased raw materials meet the food safety requirements, and began to implement the relevant operating procedures in November 2021.

Supplier Management

Objectives

Business-to-Business

With the tenet of exquisiteness, freshness and deliciousness, we provide healthy and safe food to the public, and ensure the health of customers through the implementation of hygiene and safety management.

Labor standards are met

The working conditions of the employees shall comply with the standards set forth in the Labor Standards Act, the basic principles of labor human rights recognized by international human rights conventions, and relevant labor laws and regulations.

Health & Safety

Provide a safe and healthy working environment for employees, comply with local occupational safety and health regulations, and reduce risk factors in the working environment to prevent occupational accidents for employees.

Protecting the environment and sustainability

Operate without sewage, air and land. Efforts should be made to minimise adverse impacts on human health and the environment and adopt the best feasible measures to prevent and control pollution, as far as is cost-effective and technically feasible.

Abide by the principle of good faith

Any form of bribery, corruption, extortion, theft, abuse of power and improper benefits, including any form or name of money, gifts, commissions, positions, services, preferential treatment, kickbacks, etc., is prohibited.

Openness, transparency and cooperation

Disclose data on participation in labor, health and safety, environmental activities, business activities, organizational structure, financial status and performance in accordance with applicable regulations and prevailing industry practices. The Company or the third-party verification unit of the cooperation is allowed to conduct an audit on whether the supplier has violated this commitment.

Other matters

In accordance with the relevant government laws, regulations or company measures.

Supplier

Evaluation process

Step 1
Suppliers are required to respond to the annual self-assessment questionnaire, and the results of the responses will be reviewed by the King House Purchasing Department and management. Some suppliers arrange on-site inspections, and the procurement unit or audit unit conducts interviews and spot checks to support the information.
Step 2
After conducting a risk assessment according to the supplier review, King House will issue improvement notices to high-risk suppliers, and enhance the sustainability and resilience of suppliers through education, training, counseling and other forms.
Step 3
The results of King House Supply Chain Management and Supplier Sustainability Evaluation are disclosed on the company’s website and in the sustainability report, which is subject to third-party audit.
Step 4
Supplier evaluation mechanism：In 2023, there will be 178 upstream suppliers of King House and 167 upstream suppliers of Chao Kang Cheng. The selected suppliers must be required to issue a legal certificate of establishment, and follow the internal supplier management standard operating procedures to provide relevant information, and the procurement department to fill in the manufacturer’s on-site assessment record form.
Sustainability Report

Ingredient

management

process

Source management of ingredients
King House will set up a food safety laboratory in 2023, and the number of inspection items established by the quality inspection laboratory is 2, namely “Pesticide Residue Judgment Standard” and “Ractopamine Judgment Standard”, and a total of 228 samples of goods and raw materials will be tested in 2023, and 224 of them will pass the inspection, with a pass rate of 98.25%. The total expenses incurred by the laboratory were NT$503,498, including NT$1,667 for outsourced inspections, accounting for 12.49% of the individual operating income. In 2023, the percentage of food traceability in Chao Kang Cheng inventory management system is 100%.

supplier management

Implementation of 2023

According to the standard operating procedures for supplier management and hygiene management, the procurement department proposes a supplier evaluation for the following year for the existing suppliers at the end of each year. If there is an unqualified manufacturer, the general manager will rule whether to terminate the cooperation to ensure that the raw materials purchased from the supplier meet the requirements of Chao Kang Cheng.
diligence
diligence
In 2023, 32 new suppliers will be added, all of which will be assessed and audited according to the new supplier's rating form, and all of them will be assessed as 【qualified】.
Safety
Safety
At the end of 2023, the supplier assessment plan for 2024 will be proposed, and 10 suppliers are expected to be selected for evaluation in 2024, and the evaluation object will be based on the purchase price in 2023 Top 20 suppliers, key cultivation manufacturers and suppliers with abnormal supply. The screening period is expected to be from January to December 2024.
Health
Health