By integrating industrial knowledge and technology, Pou Chen has linked the upstream, midstream and downstream businesses in the footwear industry and formed a complete supply chain. With the goal of providing customers with rapid responsive services, the Company continues improving manufacturing processes, enhancing production flexibility, and building a responsive material supply system that is sensitive to the market, so as to develop its long-term value.

Based on the vision of “resource integration and value increase”, Pou Chen has set short-, mid-, and long-term goals and expects to realize its corporate social responsibility and the sustainable development goal by developing more new materials, new processes, new technologies, and new applications, as well as developing product creativity and its added value.

The short-term goal is to continue optimizing the vertically integrated supply chain management system by integrating the Group’s resources and to provide comprehensive solutions to meet customers’ needs. The mid- and long-term goal, apart from continuously enhancing the quality and the competitiveness of cost, is to expand suppliers’ R&D and sustainable development capabilities to innovate applications, upgrade manufacturing processes, and refine materials with suppliers

New Suppliers

In addition to the materials appointed by customers or suppliers of specific materials, Pou Chen screens 100% of new suppliers based on environmental standards. New suppliers are required to complete a self-assessment form including items, such as the Group's code of conduct, occupational safety, and fire safety. In addition, new suppliers are sampled for factory inspection visits on a regular basis every year. After the completion of the self-assessment form and factory inspection visits, a decision will be made if applicants can be included as Pou Chen's suppliers.

Supplier Sustainability Management

  • Pou Chen has formulated 12 categories of auditing components based on the ISO14001 environmental management system, including environmental management, fire safety, and occupational safety and health.
  • The Company rewards suppliers with outstanding performance, including green design, green manufacturing, green innovation, green marketing, green procurement, green recycling, and green product.
  • The Company provides counseling to the suppliers with more deficiencies in sustainable development management for improvements depending on the degree of severity. With suggestions, if the suppliers are still unable to meet the Company’s requirements after improvements, they will be replaced to reduce the supply risks to enable the Company’s supply chain management to be able to meet the basic environmental protection requirements of ISO 14001:2015 and international sustainable development trends.
  • Pou Chen conducts targeted management based on the importance and traded proportion of raw materials. For suppliers who fail their audits, the procurement quota will be adjusted through the supplier management system, so as to establish a high-quality supply chain management system.

Supplier Quality Management

  • Pou Chen has formulated the supplier quality audit system includes 11 quality management components to grade.
  • In accordance with the ISO 9001:2015 quality management system, the selection and evaluation criteria are established for suppliers, and their business status, quality management system, supply capacity, service and delivery capabilities are further understood with a check list.
  • To effectively manage suppliers and ensure that the quality of procurement can meet the Company’s and customers’ requirements, the audited suppliers are required to respond to the deficiency improvement measures in accordance with the PDCA (Plan, Do, Check, Action) principle, so as to strengthen suppliers’ quality management.

Supplier Development

Pou Chen regards suppliers as partners and held Supplier Material Exhibitions for providing a platform for suppliers and Pou Chen’s R&D personnel to interact face-to-face and share product and material needs, as well as development trends. Additionally, topical seminars/symposiums were organized for exchanges of new technologies and future prospects. With collaborative innovation with suppliers and attention to environmental protection and health and safety issues, Pou Chen would build a sustainable development supply chain system to realize the vision of “resource integration and value increase” and ensure the implementation of corporate social responsibility.

  • In March 2017, a supplier material exhibition was held in Gaobu, China, and a total of 73 suppliers participated.
  • In September 2017, a supplier material exhibition was held in Bình Chánh, Vietnam, and a total of 71 suppliers participated.