Supply Chain Management

In addition to counter vendors, FEDS’ business partners include suppliers and contractors supporting five major types: engineering, administrative, IT, advertising, and labor services, all centrally managed by the Procurement Department. Through structured management and digital tools, FEDS improves supply chain efficiency, transparency, and sustainability performance.

Sustainable Supply Chain Relationship Diagram

Supplier Management Strategy

FEDS’ supply chain strategy focuses on local procurement, ESG goals, and supplier resilience, supported by digital procurement systems to improve efficiency and reduce carbon emissions.

Local
Procurement

Reducing Transportation Emissions and Supporting Local Economic Development

Responsible Procurement

Ensuring Suppliers Address Environmental Protection, Labor Rights, and Other Sustainability Issues

Supply Chain Resilience

Enhancing Supply Chain Stability and Service Quality Through Sustainable Management

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 Code of Conduct and CSR Commitment

To implement ESG management across its supply chain, FEDS requires all contracted suppliers to sign the “Supplier Code of Conduct and CSR Commitment” upon contract signing. Compliance is considered in partnership evaluations, contract renewals, supplier management, audits, and procurement decisions, ensuring alignment with FEDS’ sustainability goals.

Sustainability Commitment Indicators

The “Supplier Code of Conduct and CSR Commitment” covers five major dimensioms: labor and human rights, health and safety, the environment, ethical standards, and management systems, comprising 50 indicators in total.

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 Systems

50

Sustainability Indicators

Signing Status

In 2025, 270 supplier agreements were signed, covering procurement worth NT$1.109 billion, a 39.8% increase from the previous year, demonstrating continued growth in supplier sustainability management coverage.

Number of Supplier Code of Conduct and CSR Commitments

Unit: cases

Supplier Code of Conduct and CSR Commitment Purchase Value

Unit: NT$100 millions

Timeline of Driving Supply Chain Management

2016

In September 2016, the Procurement Department was established to coordinate the internal purchasing system.

2017

Suppliers accounting for more than NT$1 million in procurement must sign the "Supplier CSR Commitment Letter".
Introduced the procure-to-pay system to improve the efficiency of procurement management.

2018

Formulated the supplier selection system and established a database of high-quality suppliers.
Promoted "Supplier Construction Insurance" to reduce industrial safety accidents.
Strengthened four key measures for contractors' operational environment, safety, sanitation, and management.

2019

"Supplier CSR Commitment Letter" is extended to suppliers whose purchase amount is less than NT$1 million.
Conducted relevant education and training for colleagues and management trainees to strengthen professional procurement knowledge.

2020

The combined purchase of products was increased to achieve the three goals of integration, cost-saving, and process simplification.
Standard bids were formulated for construction projects to ensure the consistency of bidding documents, saving time for the bidding process.
The "Urgent Requirement SOP" was formulated to ensure the execution of the case and timely handling in case of urgent procurement.

2021

Suppliers with a purchase amount of more than NT$800,000 were required to sign a mandatory "Supplier CSR Commitment Letter".
Consolidated 8 types of unified bid and combined purchase.
Adjusted the "Supplier Construction Insurance Standards" and formulated management rules for labor service manufacturers.
Promoted “Preferred use of products with environmental labels and certifications” through supplier meetings.

2022

All contracted suppliers are required to sign a mandatory "Supplier CSR Commitment Letter".
Continue to consolidate 2,769 items of combined purchase.

2023

Discuss supplier database requirement specifications with relevant departments.
Increased centralized purchase items to 3,000.
Continuously optimizing the procurement, inspection and payment system.

2024

Simplified the estimated quantity procurement workflow of the RPIP system, effectively accelerating procurement efficiency for general affairs suppliers.
Increased centralized purchase items to 3,306.
Continued to increase headquarters consolidated orders, simplifying 5,612 RPIP administrative processes.

2025

Conducted on-site audits of 56 suppliers and evaluated 5,181 procurement cases.
Consolidated 3,382 procurement items, representing a 148% increase over the past five years.
Reduced paper use in procurement documents by over 1.46 million sheets, avoiding approximately 9.93 metric tons of CO₂e emissions.

Future plans

FEDS plans to adopt the ISO 20400 Sustainable procurement — Guidance in 2026 to strengthen supplier sustainability management and enhance supply chain resilience.