Supply Chain Management

Supply chain management is also a major issue in the sustainable operation of enterprises. Cameo Communications regularly evaluates its supply chain to ensure compliance with environmental and occupational health and safety requirements. Additionally, through investigation, cooperating suppliers over the past three years have not caused negative impacts on the environment and society. The future supply chain sustainability policy will be published after consolidation and revision on the official website. Since 2024, the Company has gradually implemented sustainable evaluation measures and education for both new and existing suppliers。

Policies/
commitments
  • Continue to establish long-term supply chain relationships to ensure the Company’s products and services meet high quality and stability standards. Our supply chain management policy aims to build trust, promote cooperation, and achieve sustainable operations and development goals。
Targe Short
term
  • Complete establishment of a comprehensive sustainable supply chain evaluation system, incorporating three aspects: corporate governance, social, and environmental
  • Gradually introduce sustainability evaluation with a target of 100% supplier coverage
Medium to
long term
  • Add improvement measures for suppliers that do not pass sustainability evaluation items to help suppliers move toward sustainability。
Responsible department/
grievance mechanism
  • Procurement / Company official website mailbox。
Resources invested in the year
  • Establish a sustainable supply chain evaluation system and complete the discussion and confirmation of supplier sustainability evaluation content。
  • Implement and promote supplier sustainability evaluation in procurement units。
Evaluation mechanism /
outcomes
  • List the actual number of relevant suppliers and design a sustainability evaluation check list to be provided to them。

Cameo Communications supplier selection criteria:

  • Must possess a business registration certificate and a legal factory registration。
  • Company must have comprehensive systems, a good reputation, and no major regulatory violations。
  • All main raw materials must comply with Cameo Communications’restricted substance requirements。
  • Priority given to suppliers with ISO management systems such as ISO 14001 and ISO 45001。
  • Priority given to suppliers with relevant sustainability evaluations。
Year202220232024
Number of new suppliers15 units12 units13 units
Number of local suppliers34 units33 units33 units
Note: Local suppliers are defined as suppliers in Taiwan

Supplier evaluation process:

Based on the quality assessed by the quality assurance unit, on-time delivery rate assessed by the purchasing unit, and the price competitiveness by strategic procurement, Cameo Communications carries out evaluation and consolidate the monthly scores into a final grade：

  • A+ grade supplier, total score ≧90 points
  • A suppliers, total score ≧80 points
  • B supplier, total score ≧70 points
  • C suppliers, total score < 70 points

A meeting for supplier review (QBR meeting) will be held, with the quality assurance and purchasing units both listed as responsible for written or on-site factory visits for assessment and consultation, and confirm the assessment results on the meeting。

  1. For suppliers with evaluation results of B grade, SQE should require suppliers to submit improvement plans within two months and provide SQE guidance for improvement. For suppliers with evaluation results of C grade, SQE should require suppliers to submit and implement improvement plans within one month, If C grade is still obtained after reevaluation,SQE should hold a discussion with relevant units to discuss disqualification, and if C grade is still obtained after third evaluation, the supplier may be removed from the list of qualified suppliers。
  2. For suppliers with an excellent evaluation of A+ grade, when objective conditions of market supply and demand permit, priority purchasing rights or priority consideration for new product development introduction should be given。
  3. Suppliers with scores of grade B or below will be given warnings, listed in a watch list, and may be considered for reducing procurement volume。
Category Year/Month 202401 202402 202403 202404 202405 202406 202407 202408 202409 202410 202411 202412
Electronics Number of evaluated
suppliers		 35 69 68 69 73 80 97 95 85 73 73 75
Number of unqualified
suppliers		 0 0 0 0 0 0 0 0 0 0 0 0
Mechanical /
Structural		 Number of evaluated
suppliers		 32 32 33 30 32 34 30 35 26 28 28 28
Number of unqualified
suppliers		 0 2 0 0 0 0 0 1 0 0 0 0
Packaging
materials		 Number of evaluated
suppliers		 12 11 15 14 12 15 14 14 14 13 13 12
Number of unqualified
suppliers		 0 0 0 0 0 0 0 0 0 0 0 0

Supplier Nonconformance Handling:

For nonconforming suppliers, the Company continues to provide guidance and oversight to ensure corrective improvements.
For quality-related issues, the Quality Assurance team collaborates with the supplier in accordance with the Supplier Management Regulations, and requires suppliers to complete the SCAR (Supplier Corrective Action Request) form. The SCAR process includes steps such as:

  • problem description
  • formation of an internal/external cross-functional improvement team
  • root cause analysis
  • temporary containment measures
  • permanent corrective actions
  • validation of effectiveness
  • preventive measures

These steps help ensure that supplier quality remains within a controllable range。

For suppliers whose quality issues persist and require phase-out, the Company will gradually shift orders to higher-performing suppliers through second sourcing (2nd source) arrangements。

Two nonconforming suppliers successfully completed corrective actions through the above procedures and were therefore retained。