Supply Chain Overview
To ensure supply stability, Simplo Technology carefully selects new suppliers and is committed to cultivating long-term partnerships. Together, we aim to establish a stable and sustainable supply chain, thus achieving the Company’s sustainability goals.
Procurement amount in 2023
| Type | Procurement region | Percentage of procurement amount (%) |
| Raw materials | Local procurement in Taiwan | 96% |
| Local procurement in China | 95% |
Note:
1. Simplo Technology's main production locations are located in Mainland China and Taiwan. Local means suppliers in Mainland China and Taiwan, while non-local suppliers are not located in Mainland China or Taiwan.
2. Procurement regions are determined based on the location of invoices for procurement.
Weight of raw materials in 2023
| Material item | Weight (kg) |
| Battery cell | 19,436,003.42 |
| IC chip | 2,883.32 |
| Plastic | 664,715 |
Note:
1. Battery cells are estimated by weight based on their average capacity conversion
2. IC is the weight of the total parts
3. Plastic is the total weight of the parts
Supply Chain ESG Risk Assessment
Selection of new suppliers
Simplo Technology evaluates new suppliers based on sustainability, quality, delivery, schedule, price, engineering and technical capabilities, and other criteria. Suppliers with good market reputation and environmental management systems can be directly included as qualified suppliers. Suppliers who do not meet the criteria must make improvements within a specified period before they can be formally included as qualified suppliers. In 2023, all 23 new suppliers were selected following the “Supplier Management/Evaluation and Assessment Procedures” in their entirety.
Supplier code of conduct
Simplo Technology views suppliers as important partners and extends the principles of sustainable business into supply chain management. Specific methods and goals for sustainable supplier management have been established accordingly. Simplo Technology has adopted the RBA Code of Conduct as a reference and formulated the “Simplo Technology Supplier Code of Conduct Commitment”. For suppliers who have transactions with the Company, they must sign the Code of Conduct Commitment, declaring their commitment to business integrity and compliance with environmental, economic, and human rights standards. Since 2022, suppliers have been required to sign the "Supplier Code of Conduct Commitment". As of 2023, a total suppliers have signed this commitment, achieving a signing rate of 95%.
Supplier sustainability management survey
In 2023, questionnaires were distributed to suppliers accounting for 85% or more of the procurement amount, totaling 33 suppliers. These include 4 battery cell suppliers, 18 electronics manufacturers, and 7 institutions, respectively. According to the questionnaire survey, 14 suppliers (48%) have issued sustainability reports, 28 (97%) suppliers have obtained ISO 14001 certification, and 17 (59%) suppliers have obtained ISO 45001 certification. Among them, 13 (45%) of 21 (72%) suppliers were audited, and 16 (55%) suppliers have undergone RBA audits.
Supplier RBA management
Simplo Technology has become a member of the Responsible Business Alliance (RBA) since 2021. In addition to its own compliance with the RBA Code of Conduct, it also promotes the sustainable management of the supply chain. It has promoted the RBA requirement at the 2023 Sustainable Supply Chain Communication Conference.
2023 RBA audit results
Simplo Technology conducts annual audits for the top 70% of suppliers by procurement amount. The audit team is composed of departments such as management, EHS, and sustainability. Audit methods include on-site inspections or remote document reviews. The RBA audit implementation principle prioritizes on-site audits for suppliers with manufacturing plants located in Mainland China. For suppliers located outside Mainland China and IC design firms not directly involved in production, remote audits are conducted.
Responsible Mineral Procurement Management
Please click[Responsible Mineral Procurement Policy]