Darfon Electronics annually assesses and scores all suppliers based on process capability/expertise, incoming material quality, supplier cooperation, delivery/shipment compliance, and price/cost reduction compliance. Suppliers are also randomly selected for on-site audits. Suppliers that fail the on-site audits must submit a detailed improvement report and implement corrective and preventive measures within a specified timeframe. A representative will then conduct an on-site inspection to verify the improvement has been completed. Failure to complete these measures will result in the supplier being classified as uncooperative and, if necessary, termination of the partnership. Furthermore, Darfon will consider discontinuing cooperation with suppliers if they receive a C rating or below for three consecutive years.
To ensure suppliers deliver zero-defect and competitive products, Darfon conducts annual supplier quality assessments, including cost, transportation, delivery, service, technology, manufacturing, and finance, through phone calls, emails, and system data comparisons. The results are categorized into four levels: A, B, C, and D. Suppliers receiving a D rating undergo a subsequent paperwork investigation and are required to improve to a C rating (70 points) or higher. Suppliers with excellent overall evaluation scores will be awarded the Excellent Supplier Award. Selected excellent suppliers will also receive relatively favorable payment terms.
Note: Key Supplier = Average monthly delivery volume ≥ 100
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