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In 2006, Delta had around 3000 suppliers in total. Apart from management through a common platform within the Group, each business group/unit also maintains its own supplier management system to meet requirements unique to their operations. To ensure high quality products from our suppliers and reduce risk, our supplier management framework is based around “Key Suppliers” and “Critical Components” (see graphic). Apart from regularly evaluating our suppliers on key performance indicators such as price, quality, technology, delivery and service, we also emphasize risk management by managing supply and demand for critical components. |
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Management of the Use of Restricted Hazardous Substances (RoHS) |
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Delta has actively implemented RoHS control measures in our production processes and materials management through our management system since 2005. By taking a “Source Management” approach, the purchasing staff at all business divisions require our suppliers and even sub-tier suppliers to conform to standards based on RoHS. All suppliers are asked to carry out self-monitoring and self-testing. They are also required to sign and submit a RoHS compliance declaration and cooperate with Delta’s audits to ensure that all materials used by Delta meet RoHS and customer requirements. The management flow is shown below. If a supplier does not have the necessary equipment or testing capability, testing can be done by an internationally recognized third-party organization. Delta’s own heavy metal analytical laboratory is also available for internal and external users. For suppliers interested in purchasing their own instruments, Delta can provide assistance. Worth mentioning is that the heavy metal analytical laboratory set up in 2001 at our Wujiang Factory was the first national level laboratory accredited by the China National Accreditation Board for Laboratories (CNAL). Delta also set up national level laboratories at our factories in Taiwan and Thailand. |
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We have designed a global Alert System for use by Delta Group and have trained those authorized to use the system. All factories and subsidiaries have well established access to the system. When an abnormality is detected on the production line, an alert message is sent to the appropriate business divisions or product managers through this system. All alert messages issued are stored in the database for future review and for use in employee training. |
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Delta established RoHS task forces at all factory sites in 2006. Their primary mission is to: |
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Review suppliers' qualifications |
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Review the status of suppliers' signing of environmental documents |
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Assess suppliers' risk levels as shown below |
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Convene supplier meetings and implement audits for high-risk suppliers |
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Provide counseling or require improvements according to audit results |
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Adjust supplier composition |
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There is also an audit team composed of members from each business group that is sent to the factories to check compliance on production lines. Delta factory audits focus on the following key items: |
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Understanding of RoHS by the person-in-charge |
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Condition of the factory's internal audit system |
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RoHS planning and timetable |
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Process of disqualifying suppliers |
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Supplier audit results |
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Material sampling plan and capability |
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Tracing and alert system |
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The above procedural and operational areas are divided into 6 categories and 32 items for review. After a review, problems are listed and a deadline is set for corrective action and then followed up. Recommendations from factory personnel are collated for future reference. |
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Social and Environmental Responsibility |
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Delta launched a trial social and environmental responsibility program at our Dongguan factory site in March 2007. Surveys, questionnaires, audit schedules and goals based on the Electronic Industry Code of Conduct (EICC) were drawn up for use in understanding and improving suppliers' performance on labor rights, health & safety, and environmental issues.
Delta has shared the Dongguan experience with our main factories in Wujiang and Thailand. The exchange of information between units will help develop an optimal model to assist Delta’s supply chain to meet its social and environmental responsibilities. |
