Sustainable Supply Chain Management
Customer-centered Distribution Experience
For upstream semiconductor suppliers, the role of semiconductor distributors is to support suppliers' sales of semiconductor components; for downstream product manufacturers, the main function of semiconductor distributors is to assist customers in purchasing semiconductor components that are indispensable to manufacturing.
Smart Logistics and Warehousing
WPG adheres to the concept of “customer-oriented” for its logistics management, continuously improving service quality, and dedicates efforts to provide high-quality logistics services to customers while constantly seeking breakthroughs and development.
To achieve ideal human-computer cooperation, WPG established a transparent platform that connects internal and external information, transfered routine work to online system and manually processed variable work items offline, in the hope of creating a collaborative ecosystem with our partners. Smart transportation and smart diversion have significantly enhanced our warehouse efficiency. Coupled with integration of real-time information on management dashboard, all management indicators and equipment status can be accurately tracked.
Chemical Safety Management
Regarding the management and identification of hazardous chemicals and related substances, WPG’s daily management system is in compliance with global industry standards. Our daily management includes the identification, registration, usage records and alternative options for chemicals and related substances. In response to Pb Free (Lead Free) environmental protection guidelines that have been implemented in the industry over the past years, and Halogen Free Guidelines (HF) issued by the International Electrotechnical Commission, WPG’s warehouse adopts batch identification management mechanism on a daily basis, recording whether each purchased item meets the aforementioned chemical requirements in the IT system based on supplier information, so as to provide customers alternative options for chemical substances with very high concern. WPG ensures main chemical composition of semiconductor components can be clearly identified along the process from procurement, inventory, to sales management.
Based on our chemicals and related substance management policy, WPG identified 19 critical suppliers (identified by sales revenue) and concluded 100% compliance with EU’s Restriction of Hazardous Substances Directive (RoHS), China RoHS, the Halogen Free Guideline (HF) issued by the International Electrotechnical Commission, the EU's Registration, Evaluation, Authorization, and Restriction of Chemicals Act (REACH), and the EU's Perfluorooctanesulfonic acid Directive (PFOS).
WPG will continue to pay close attention and comply with regulations that prohibits or restricts related hazardous substances, and dedicate efforts to promote products in compliance with environmental protection laws and regulations (WEEE, RoHS, PFOS, REACH, Halogen-Free standards, and China RoHS), in order to jointly create a sustainable global electronics supply chain and to contribute to global environment protection.
WPG critical suppliers’ environmental protection regulations compliance summary is disclosed below, in alphabetical order.
Conflict Minerals Management
The U.S. Congress approved the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010. According to Article 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the U.S. Securities and Exchange Commission announced the “Rule 13p-1 under the Securities Exchange Act of 1934” in August 2012. This Article aims to solve the issue of human rights abuses linked to mining operations in the Democratic Republic of the Congo (DRC), or an adjoining country (collectively, the “Covered Countries”). Minerals mined from this area are called “3TG” including Tin (Sn), Tungsten (W), Tantalum (Ta) and Gold (Au).
As a distributor of semiconductor components, WPG complies with the Dodd-Frank Act passed by the US Congress and relevant regulations of the Securities and Exchange Commission. Although we did not participate in the product manufacturing process, we have actively cooperated with upstream product suppliers and communicated our requirements for conflict minerals, hoping to encourage suppliers to manage and disclose conflict minerals information. WPG does not directly purchase any conflict minerals from any source and does not knowingly procure any product containing conflictminerals from the Covered Countries.
WPG has established Conflict Minerals Regulations, dedicating efforts to avoid the use of conflict minerals in the products distributed, and to promote supply chain transparency and customer awareness through information disclosure. We conduct due diligence to ensure our critical suppliers’ products are conflict-free to fulfill corporate social responsibility, and we aim to create a sustainable electronic supply chain along with customers and suppliers. In the future, WPG will continue to conduct supply chain due-diligence annually to meet supply chain management targets.
Conflict Minerals Management Process
- Due Diligence Procedure and Scope
Since WPG does not participate in product manufacturing processes, due diligence is primarily conducted through documentary reviews. Supply chain survey is distributed to collect information if upstream suppliers’ public information is not available.
WPG’s due diligence measures specified supplier risk assessment factors include whether supplier is a member of RBA, whether Conflict Minerals Management Policy is formulated, whether raw material’s country of origin is traced, and whether smelters and refiners due diligence is conducted. Upon completion of risk assessment, corresponding supplier engagement approach is adopted according to risk level, and due diligence results are disclosed to reflect WPG’s commitment to mitigate the risk of contributing to human rights abuses related to mineral extraction in the Convered Countries.
- Due Diligence Results
WPG conducted due diligence on the 19 critical suppliers previously noted and plans to expand the scope in the future. All 19 critical suppliers are identified as low risk suppliers according to due diligence measure.
Proportion of minerals from non-conflict countries/regions and proportion of validated smelters and refiners of WPG critical suppliers:
WPG Supplier Code of Conduct
Since 2018, in order to effectively implement supplier management, WPG Holdings and its subsidiaries have formulated WPG Supplier Code of Conduct in accordance with the Responsible Business Alliance (RBA; formerly known as EICC) Code of Conduct, focusing on five aspects including labor, health and safety, environment, ethics and management systems.