VTech Holdings Limited Sustainability Report 2015 - page 37

Supplier
Relationship
Sustainability Report 2015
37
• Freely Chosen
Employment
• Child Labour
Avoidance & Protection
of Young Workers
• Working Hours
• Wages and Benefits
• Humane Treatment
• Non-Discrimination
• Decent Working and
Living Environment
• Business Integrity
• Anti-Corruption
• Code of Conduct
• Disclosure of
Information
• Procurement Practice
• Environmental Permits and
Reporting
• Pollution Prevention and
Resources Reduction
• Hazardous Substances
• Waste water and Solid
Waste
• Energy Efficient
Manufacturing Process
• Occupational Safety
• Emergency
Preparedness
• Occupational Injury
and Illness
• Industrial Hygiene
• Physically Demanding
Work
• Machinery Safety
Supply Chain Management
A well established Supply Chain
Management System and a good
procurement practice are crucial for
our sustainable operations. VTech has
a Supply Chain Management System
in place to monitor the quality of our
suppliers as well as their environmental
and ethical performance. We are
committed to managing our supply
chain in a socially and environmentally
responsible manner and sourcing from
approved suppliers who meet VTech’s
CSR requirements.
VTech’s major suppliers in the supply
chain include the manufacturers
of PCBs and other electronic
components, of which 94% are located
in China.
Logistic providers form the bulk of
the latter part of the supply chain.
We recognise that extreme events
can delay the supply of materials
and given the nature of some of the
major activities, may also pose social
and environmental risks. In order to
mitigate the risks to VTech and its
customers, we have a Supply Chain
Management System in place to
monitor the suppliers quality as well
as their sustainability performance to
eliminate the potential disruptions that
might hinder the effectiveness of our
supply chain.
VTech aims to develop and secure
long-term relationships with its suppliers
and contractors based on mutual trust.
Procurement of supplies and services
is conducted using fair and objective
criteria in an ethical manner so as
to ensure the quality of the finished
product. The decision to use particular
services or purchase particular goods
are based upon price, quality, delivery
capacity, reputation for service and
integrity, social and environmental
responsibility of the suppliers.
We work closely with our approved
suppliers, and encourage them to
follow our key CSR Initiatives, based on
the requirements of EICC, International
Labour Organisation Conventions on
Labour Standards, ISO 14001, and
OHSAS 18001. We have extended the
topics covered in our regular audit to
further improve the energy efficiency
of our suppliers base. Our suppliers
are required to sign the agreement on
Conflict Minerals to ensure all metals
used in the manufacture process of
VTech’s products do not originate from
the Conflict Region.
VTech hosts Supplier Day every year
to enhance the communications with
our suppliers. We strive to maintain a
good relationship with our suppliers
VTech’s CSR Requirements for Suppliers
and establish the VTech CSR initiatives
in our supply chain to ensure that our
suppliers recognise our procurement
practices and requirements. We also
provide training to suppliers on our
continuous improvement programmes
to facilitate their understanding of our
standards and requirements.
Labour
Environment
Ethical
Standards
Health
and
Safety
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