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Supply Chain Management

PI Advanced Materials connects people, society, and the world by realizing the potential of Polyimide
through creative innovation technology.

Supply Chain Management

Together with its partners, PI Advanced Materials is developing a sustainable management system. We are developing strategies to improve transparency in the environmental, social, and governance areas and minimize supply chain risks on the basis of trust with our partner companies.
In order to manage supply chain risks, PI Advanced Materials intends to implement a number of management policies, such as shared growth and fair trade compliance strategies, partner company codes of conduct, and purchasing policies.

Supply Chain Management Strategy

4 Strategies for Supply Chain Management

Supply Chain Management System

PI Advanced Materials is working to create a robust supply chain through a three-stage management process from an ESG perspective that includes supplier registration screening, contract performance evaluation, and follow-up management.

1. Supplier Registration

- Sourcing of Preferred Suppliers
- Supplier ESG Self-Assessment
- Supplier Code of Conduct Pledge

2. Supply Chain ESG & Performance Evaluation

- Frequency: Annually
- On-site Inspections: Key Suppliers
- Includes: Supplier self-assessment

3. Review of Evaluation Results

- Evaluation Rating Classification
- Sharing of Results and Receipt of Corrective Actions for Issues

4. Post-Evaluation Management

- Issuance of Penalties: Based on Evaluation Results
- Verification and Monitoring: Of Corrective Actions for Non-Compliance Issues

Supply Chain Registration Process

Apply for Supplier Registration

Review of Basic Qualifications

Fact-Finding Survey

Quality TEST

Register as a Supplier

Supply Chain Evaluation Criteria

Evaluation Ratings: A: 90–100 points, B: 80–89 points, C: 70–79 points, D: 60–69 points, E: Below 60 points

Evaluation criteria General Status Sustainability
Management System
(SMS) 		Quality
Management System
(QMS)		 Environmental
Management System
(EMS)
Evaluation content
  • Management Status
  • Credit Rating and Transaction Performance
  • On-Time Delivery Compliance
  • Risk Management (e.g., Insurance Coverage)
  • Sustainability Certification (ISO 26001)
  • Labor Rights Management
  • Compliance with Ethical Standards
  • Anti-Corruption Management
  • Quality Management Certification (ISO 9001)
  • Quality Metrics and Quality Control
  • Customer Satisfaction
  • Process Management
  • Environmental Management Certification (ISO 14001)
  • Hazardous Substance Management
  • Material and Product Management

Current Status of Supply Chain Management

Unit 2020 2021 2022 2023
Total Number of Partners Items 495 511 584 529
Newly Registered Partners Items 0 16 73 0
Supply Chain Management Evaluation of Managed Entities Items 37 38 37 34
Suppliers Requiring Corrective Actions Items 4 8 3 3
Corrective Action Implementation Rate % 100 100 100 100
Suppliers with Terminated Partnerships Items 0 0 0 3

Follow-up

Supplier risk management: Constant/regular audit of suppliers

Criteria for Cancellation of Supplier Registration
  • 01 Suppliers that are unable to operate normally due to business interruption, such as bankruptcy due to poor management
  • 02 Suppliers that hinder market distribution and manipulate dumping
  • 03 Suppliers who do not supply without justifiable reasons
  • 04 Suppliers that are not capable of producing products of the required quality or are not competitive
  • 05 Suppliers deemed impossible to trade with as a result of internal audit
  • 06 Suppliers with ratings of less than 70/100 were determined to be unavailable for business as a result of the post-evaluation
  • 07 Suppliers that the evaluation manager determines are impossible to trade with
  • 08 Suppliers whose products contain substances exceeding the acceptable standards for environmental substance level 1
Code of Conduct Purchase Policy