Supply Chain Management

FEDS’ supplier partners include five categories: engineering, administrative, information technology, advertising, and labor service suppliers. Through supplier management and evaluation, we ensure suppliers not only comply with legal requirements but also share FEDS’ commitment to labor and human rights, environment, ethics, and health and safety. FEDS holds an annual supplier event to share performance and future vision while recognizing outstanding suppliers, aiming to enhance the customer shopping experience.

Supply Chain Relationship Diagram

Subsidiary Supply Chain Diagram

Supplier Selection Process

Phase 1: Select the Members of The Supplier Selection Committee

  • By company type composition: The “Headquarters” and “Branch” each account for 50%
  • By professional category composition: “General Staff” and “Professional Staff” each account for 50%

Phase 2: Planning the Selection of Suppliers

  • Planning the selection of vendors according to construction/general affairs/counters
  • Selected vendors are included in the list of evaluated vendors after the compliance review based on the basic information of vendors is conducted

Phase 3: High-Quality Suppliers are Selected in a Fair, Just and Open Manner

  • Committee formation: 10% of the evaluation committee members were randomly selected by computer to form the Supplier Project Evaluation Committee
  • Selection process: Based on the “Four Major Selection Indicators for Suppliers,” the selection is conducted in a fair, just, and transparent manner to identify high-quality suppliers
  • Provision of List: The procurement unit will provide the list of qualified vendors for reference by the relevant personnel

Supplier Selection Criteria and Quantity

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Health and SafetyLabor and human rightsEnvironmentEthicsManagement System
Total Number of Suppliers Screened26626626626611
Number of Suppliers That (May) Have Negative Impact Identified00000
Number of Improved Suppliers00000
Number of Terminated Suppliers00000
  • Note: The evaluation scope in the above table includes new suppliers and suppliers without cooperation in 2023. Suppliers with no contact in the previous year are regarded as new supplier for re-evaluation.

Signing of Supplier Code of Conduct and CSR Commitment

Since 2017, FEDS has implemented the “Supplier Code of Conduct and CSR Commitment,” requiring all suppliers with business contracts and procurement amounts of NT$1 million or more to sign the agreement. By 2024, all contracted suppliers are required to sign this commitment at the time of contracting. Suppliers who fail to fulfill social responsibility commitments will be subject to contractual penalties to establish sustainable supply chain management. In 2024, FEDS obtained 266 signed agreements, with the procurement amount of these signed suppliers totaling approximately NT$7.93 million. The number of signed commitments increased by 1.14%.

Supplier Code of Conduct and CSR Commitment Number

Unit: Cases

Supplier Code of Conduct and CSR Commitment Purchase Value

Unit: NT$100 Millions

Supplier Code of Conduct and CSR Commitment Indicators

In the fourth quarter of 2024, the Far Eastern Group Joint Procurement Center revised the Supplier Commitment Letter, adding management systems requirements. The sustainability indicators increased from 32 to 50 items. Following group policy, FEDS invites contractors to jointly commit to 50 sustainability indicators across five categories: labor and human rights, health and safety, environment, ethical standards, and management systems.

8

Items of Labor and Human Rights

10

Items of Health and Safety

10

Items of Environment

11

Items of Ethical Standards

11

Items of Management System

50

Sustainability Indicators

Timeline of Driving Supply Chain Management