SEEC provides a complete product line. The supply chain is mainly distributed in Taiwan, the United States and mainland China. The upstream includes raw material or component suppliers, third parties, contractors, etc. The downstream products are widely used in steel, metallurgy, and chemical industries, electric power, electronics, construction and commerce, public works, industrial automation, automobile and motorcycle components, household and people's livelihood and many other industries and fields. We provide TOTAL SOLUTION to meet customer needs for products and services.

Local Procurement

SEEC strives to implement local procurement. Most of its suppliers have factories in cities near our production bases, including Taiwan, Suzhou, Xiamen and Changzhou. Part of the procurement is allocated and designated by customers, and we also negotiate with customers to increase the proportion of local procurement , so as to save transportation energy and time consumption, and reduce environmental pollution. In 2023, the proportion of local purchases by factories in Taiwan was about 85%, followed by small proportion from the United States and mainland China.

Supply Chain Due Diligence Management

Based on the product characteristics of each business group, suppliers are classified into raw material suppliers, third-party factories/partners, and contractors. SEEC supply chain management strategy is to develop a sustainable supply chain from the traditional supply chain management (quality, delivery), from the most basic legal compliance to the establishment of a sustainable supply chain together. We first communicate with suppliers the concept of sustainability, and combine with sustainable procurement practice, further identify key suppliers, deepen management, set up corresponding management mechanisms, and keep pace with the most updated concepts, continuously improve the depth and implementation of the procurement management, and finally by the regular and irregular inspections to cooperate with suppliers and grow together. 

When purchasing raw materials, production components and products, each business group purchases the raw materials needed for production and sales with the right quality, quantity, price, time and place, and is based on the concept of growing together with suppliers and complementing each other. On the basis of mutual trust and mutual assistance, we will allow excellent suppliers and agents to deliver on time and provide highquality products at a competitive cost.

Sustainable Supply Chain Management Cycle

Supplier Social Responsibility Code

The company stipulates that raw material suppliers, third-party factories/partners, and contractors must abide by the "Supplier Social Responsibility Commitment Letter", "Third Party Manufacturer Prohibited and Restricted Substance Control Guarantee", "Environmental Safety and Health Policy", and "Third Party Vendor Management Procedure". Since 2016, each business group has successively added the "Supplier Social Responsibility Commitment Letter" and the "Supplier Prohibited and Restricted Substance Control Guarantee" to ensure that all suppliers can work together towards sustainable operations and environmental protection, and that all products they produce can comply with specifications. As end of 2023, approximately 323 key suppliers have signed the “Supplier Social Responsibility Commitment Letter” and the "Supplier Prohibited and Restricted Substance Control Guarantee"

In addition to requiring suppliers to comply with the "Supplier Social Responsibility Commitment", for the protection of labor rights and human rights, they must abide by current laws and regulations, provide employees with a safe and healthy workplace environment, refuse discrimination and inequality, and ensure fair trade in terms of ethics. Moreover, abide by intellectual property rights, perform obligations with integrity, prohibit employees from providing or accepting any form of benefits. As for environmental protection, comply with ISO14001 requirements, continue to improve environmental protection, reduce the impact on the environment. Waste management and disposal are implemented according to law. Industrial wastewater and noise control must be within the legally permitted range. We must make the enterprise comply with the spirit of sustainability and promote the improvement of the supply chain for sustainable operation.

Supplier Management and Audit Procedure

Supplier Selection Management

In order to implement supply chain due diligence management, the company conducts a new supplier assessment process in accordance with the "Third Party Vendor Management Measures" and conducts on-site assessments. When selecting new suppliers, in addition to having sufficient ability to meet quality standards as the most basic consideration, indicators such as whether they are local manufacturers and whether they can cooperate stably in the long term are also included to implement local procurement and maintain the stability of cooperation. At the same time, suppliers are also required to meet the needs of environmental protection, industrial safety and human rights, as well as the relevant industrial safety qualifications of national regulations. Suppliers are required to comply with and sign the "Supplier Social Responsibility Commitment", "Supplier Prohibited and Restricted Substance Control Guarantee", etc. and incorporate issues related to corporate social responsibility into supplier selection projects. In 2023, a total of 20 new suppliers were added, and all new suppliers were evaluated. At the same time, they all signed the "Supplier Social Responsibility Commitment Letter" and the "Supplier Prohibited and Restricted Substance Control Guarantee" to become qualified suppliers.

New Supplier Evaluation

In the initial stage of supplier introduction, the quality of their products must be confirmed by the quality control department of each business group, and on-site evaluation is required if necessary. Supplier can be included only after the appraisal is qualified and filed. The assessment is divided into two stages:

Annual Supplier Evaluation

In order to improve the business quality of suppliers, maximize management performance, and implement service spirit and cooperation, the company implements supplier coaching in accordance with the "Third Party Supplier Management Procedure", including monthly evaluations, project supervision, and annual on-site evaluations. Review the ISO 9001/IATF 16949 maintenance effectiveness and internal audit implementation status of the supply chain, and whether it has passed QC 080000 or other major manufacturer GP certification (or its equivalent certificate). The assessment areas are as follows:

● Quality control capabilities: RoHS analyzer, incoming materials, processand factory quality control, etc.
● R&D capabilities: product life cycle management, number of R&D personnel and turnover rate, etc.
● Operation management and service system: child labor, forced labor, freedom of association, collective bargaining rights and working hours, etc.
● Production technology: implementation status of safety, health and environmental protection measures, etc.

In response to supplier quality abnormalities and evaluation deficiencies, improvement actions and prevention measures are proposed in accordance with the requirements of the management procedure. Furthermore, an improvement implementation tracking table and quality management status evaluation table are also used for further tracking. We will terminate those non-qualified suppliers when necessary. The purpose of the assessment is to improve the capabilities of suppliers to achieve the goal of supplementing each other, coexisting and co-prosperous for the central satellite factory. According to the 2023 supplier assessment results, a total of 31 assessed manufacturers have completed the improvement matters initiated in response to the assessment deficiencies, and the suppliers have all proposed improvement and recurrence prevention countermeasures within one month, all of which are in compliance with the company's requirements, and the assessment results are all 100% qualified.

Occasional Counseling/Evaluation of Suppliers

SEEC will also conduct occasional monitoring and evaluation of suppliers. When the materials or services provided by the suppliers cause major quality problems to the factory, or the monthly evaluation score is below grade C, the supplier will be coached by the supplier's coaching counterpart, usually quality control personnel. The QC personnel evaluates and proposes a list of suppliers to be coached. Those suppliers shall be coached for improvement. The suppliers will then propose improvements and we shall track improvement status of suppliers continuously so as to help suppliers improve their quality. The assessment is performed as follows:

1. Led by the Quality Assurance Department, if necessary, the procurement/R&D design/Quality Assurance Center will be invited to participate. Based on the above principles, a list of suppliers to be audited will be proposed. On-site audits will be carried out at the suppliers, and improvement reviews will be conducted based on actual problems at delivery, and recorded in the manufacturer guidance/quality review record form of each business group.

2. Compile the current year’s evaluation results: The procurement department of each business group will summarize and submit the current year’s evaluation results, and submit a copy to the quality assurance department to facilitate the supplier spot inspection mechanism.

3. Screening of unqualified suppliers: The company can eliminate suppliers with an assessment score of D. Suppliers with an assessment score of C must be improved within a time limit after the business group procurement department notifies the assessment level and given priority. Monitor the objects, increase the frequency of inspections, and re-evaluate according to the improvement plan. If the suppliers do not reach level B, the company may eliminate them depending on the situation. Eliminated suppliers must cease trading within a three-month period, and the procurement department of the business group may transfer the parts produced by them to other suppliers of Grade B (inclusive) or above, provided that they meet the verification requirements of the new regulations.

In 2023, each factory conducted occasional assessments on 62 suppliers, a total of 88 times