Supply Chain
Suppliers are one of Wellell's key stakeholders. Upholding the principle of
"cooperation and co-existence," Wellell continuously maintains mutually
cooperative relationships with upstream and downstream partners in the
supply chain. The Company aims to create sustainable value together with its
supplier partners and fulfill its corporate social responsibilities.
Wellell has formulated the Procurement Operations Management Measures and
Procurement Operations Standards as the basis for supplier management. The
content of these documents includes mechanisms for supplier selection,
standards for the management of supplier classification, and standards for
supplier evaluation. Additionally, Wellell categorizes its suppliers to
ensure that the goods provided comply with regulations. The Company also
requires key/high-risk suppliers to sign quality agreements to ensure that
the quality of medical equipment products, which are subject to strict
regulatory controls, meets both regulatory requirements and Wellell's high
quality standards.
To counter risks that could potentially disrupt the supply chain and make
key raw materials difficult to obtain, Wellell not only maintains stable
friendly relationships with suppliers but also closely monitors the supply
status and inventory levels of critical materials. In addition, for
materials with long lead times, Wellell provides suppliers with estimates of
required quantities to help them make appropriate supply arrangements,
thereby reducing the risk of insufficient supply.
Local Procurement
When selecting suppliers, in addition to considering specifications and
source of supply restrictions, Wellell also tries to increase the ratio
of localized procurement as much as possible. Among regular trading
suppliers, the ratio of localized procurement in Taiwan is approximately
93.8%. At the same time, Wellell also follows various international
regulations and guidelines, including RoHS (Restriction of Hazardous
Substances Directive) and REACH (Regulation on the Registration,
Authorization, and Restriction of Chemicals). During the selection
process for parts and materials, suppliers are required to pass relevant
tests and attach certificates or sign affidavits. This is done not only
to avoid harm to users, but also to reduce the impact on the
environment.
-
Selection of qualified suppliers and signing of confidentiality
documents
After identifying potential suppliers that meet the requirements, Wellell evaluates them based on the multiple aspects of MEQCD (management, environment, quality, cost, and delivery). Qualified suppliers are selected according to their score. At the same time, Wellell requires its suppliers, categorized into four different types, to sign confidentiality agreements, quality agreements, and affidavits on the non-use of hazardous substances (type A suppliers). -
Supplier assessment, evaluation, and improvement
Assessments: Once deemed as qualified, suppliers must undergo an assessment every six months. The assessment focuses on quality and delivery times. Wellell requires suppliers who score less than 80 in the assessment to improve and take corrective and preventive measures. If the improvements are ineffective, the supplier is reported for removal from the list of qualified suppliers.
Regular evaluations: Annual evaluations are conducted by selecting evaluation targets and formulating plans, which are then executed on a monthly basis. The evaluation targets are mainly the key suppliers mentioned above (type A suppliers), followed by those who have changed their manufacturing location or added new equipment. If the result of the evaluation is unsatisfactory, the corrective and preventive action process is initiated and the manufacturer is required to make improvements. If the improvements are ineffective, the supplier is reported for removal from the list of qualified suppliers. In 2023, a total of 32 items divided into 5 categories were evaluated, with a total of 16 suppliers being scrutinized. All suppliers were deemed qualified.