Sustainable Supply Chain
Types of supply chain and localization of procurementWith a considerably diverse and extremely flexible product and service portfolio, BizLink records high procurement amounts each year and builds a relatively large supply chain. In Asia, we have approximately 226 qualified first-tier suppliers from a diverse range of sources. Our suppliers can be divided by relevance to production materials into direct material suppliers (i.e. suppliers that are directly related to production) and indirect material and service providers (suppliers that are indirectly related to production). Procurement of direct materials have accounted for the biggest portion of our total procurement amount in previous years. In 2021, procurement of direct materials constituted 85% of our total procurement amount. Meanwhile, direct material suppliers can be further classified into three categories, namely manufacturers, distributors, and outsourced processing plants. In 2021, procurement from direct material, component, and raw material manufacturers accounted for 52% of our total procurement amount, the highest among all suppliers. Meanwhile, procurement from key component distributors accounted for 30% of our total procurement amount whereas procurement of indirect materials and general operations (e.g., transportation, equipment maintenance and repair service, etc.) accounted for 18% in the same year.
As far as the percentage of local procurement is concerned, BizLink’s production sites are primarily located in Asia. According to analysis by production site, local suppliers in China account for 76.4% of all our suppliers.
Definition of local procurement: Local procurement refers to purchases made in the country where our production site is located.
Percentage of local procurement from top 10 suppliers = Amount of procurement from local suppliers ÷ Total procurement amount x 100%
Environmental standardsHaving been following global trends in environmental protection and viewing environmental protection as our own responsibility, BizLink not only fully complies with environmental laws and regulations in locations where our operating bases and production sites are situated, but also pays attention to the latest developments in global environmental issues. We take the lead in taking various environmentally friendly actions, and actively develop environmental protection technologies in collaboration with major global manufacturers. Furthermore, we have also formulated the BizLink Environmental Technical Standards according to the relevant regulations (e.g., RoHS, REACH, and POPs) and established a hazardous substance management system to improve our environmental protection performance.
With a view to achieving the goal of selecting environmentally friendly materials and complying with international laws and regulations and customer specifications, BizLink strictly requires our suppliers and entities within our organization to meet the BizLink Environmental Technical Standards, in which environmental substances are classified into banned substances and substances that may be restricted or banned in the future. As of the end of 2021, BizLink listed 380 types of substances as controlled substances, including 138 types of banned substances and 242 types of continuously monitored and potentially hazardous “substances that may be restricted or banned in the future” (including REACH substances of high concern). We hope to provide products with low toxicity and pollution to our customers through green supply chain management, thereby minimizing harm to the environment or the human body.
Conflict Mineral StatementThe Democratic Republic of the Congo (DRC) has abundant mineral resources, including gold (Au), tantalum (Ta), tin (Sn), and tungsten (W), which are collectively referred to as 3T1G, as well as cobalt (Co). They are essential metals used for manufacturing electronic equipment. However, many of these minerals are extracted in conflict zones and sold to fund violent incidents. When illegal minerals are traded for profit, massacres and violation of human rights grow rampant in these regions.
BizLink is actively responding to global efforts in curbing trading of conflict minerals by supporting the “Dodd-Frank Wall Street Reform and Consumer Protection Act” in the U.S.A. We promise not to use conflict minerals and accept raw minerals from Central Africa, DRC, and nearby countries in conflict. Furthermore, BizLink demonstrates our response to such efforts together with our suppliers through responsible procurement. At the same time, we also show our support and follow closely the current developments and trends in EU laws amid developments in conflict mineral-related laws in Europe. In order to ensure that this group of metals, including gold (Au), tantalum (Ta), tin (Sn) and tungsten (W), are not sourced from conflict zones in DRC, BizLink requires our business entities and suppliers to avoid using conflict minerals.