Supplier Evaluation

An-Shin strives to create a win-win situation when dealing with suppliers. We make great efforts in managing the quality of suppliers, lead time, cost, environmental issues, and compliance with laws and regulations to improve business performance and strengthen competitiveness. Therefore, An-Shin conducts evaluations on new supplier, new product manufacturing process and existing supplier every year to provide reassuring products for customers.

New Supplier/New Product Manufacturing Process Evaluation

Document review: Confirmation of registration certificate and other relevant verification certificates.

 
Grading of New Supplier Evaluation
Grade  Score
A 85% and above: Excellent Supplier
B 70~84%: Acceptable Supplier
C 60~69%: Needs-Improvement Supplier
D 59% and below: Rejected Supplier

On-site qualification review: Before launching a new supplier or new product, we con-duct evaluations according to the GHP through factory visits, including workplace, equipment, material management, quality control, staff management, and etc. Only sup-pliers with grade B (scored 70 or higher), and above are eligible to apply as our partners who are able to bid, propose cases or manufacture our products. Suppliers with grade C are required to join the business counselling before becoming our suppliers, while sup-pliers with grade D are rejected. The Quality Assurance (QA) department has conducted 33 on-site qualification reviews on 13 new suppliers which had business trade with MOS in 2020, which comprised 15% of the total number of food ingredients products suppliers, and the evaluation result was 97% pass rate. 4 on-site qualification reviews on 4 indirect suppliers supplying new products were conducted with 100% pass rate. The Quality Assurance Department keeps evaluating new suppliers and manages with grading system throughout the year. The inspection items include upstream supplier on-site inspection, personnel hygiene management, manufacturing environment, machinery and equipment, raw material management, and also the quality control ability of upstream suppliers which need to provide documents for further review.

Evaluation Criteria for New Supplier/New Product Manufacturing Process
Personnel Hygiene Management
Equipment Management
Material Management
Manufacturing Site
 Quality Control Others
11% 7% 12% 23% 27% 20%

Existing Supplier Evaluation

An-Shin carries out joint evaluation of Product Development Department, Quality Assurance Department and Procurement Department to the existing suppliers every year. In 2020, we had 101 existing suppliers, which 86% of them were related to food ingredients and agricultural products. We prioritize the purchase of certified ingredients such as Traceable Agricultural Products (TAP), Certified Agricultural Standards (CAS) products, Good Manufacturing Practice (GMP), Good Hygiene Practice for Food (GHP), ISO 22000 Food Safety Management, Hazard Analysis and Critical Control Points, and etc. An "Annual Supplier Evaluation Plan" is scheduled by Procurement Department in the end of every year according to the transaction amount and condition of the previous year. The Annual Supplier Evaluation Plan is formulated by referring to the Supplier Management Procedure to continuously control and ensure the quality of products meets the standards. The evaluation criteria include the business philosophy of company, product quality, punctuality and service. In 2020, 47 evaluations were conducted to 37 food ingredients and agricultural products suppliers with 100% pass rate, comprised 44% of the total food ingredients and agricultural products suppliers. Besides, the other 9 sup-pliers and 12 indirect suppliers were also evaluated for 12 times respectively and all of them passed the evaluations.

Grading of New Supplier Evaluation
Grade  Score
A Score 70 and above: Excellent supplier with preferred further purchase
B Score 60-69: Average suppliers and remain at the same level of purchasing
C Score 59 and below :Request for improvement or cease partnership
Evaluation Criteria for Existing Supplier
Business Philosophy  Product Quality  Lead time and service
  • Prioritize customer needs
  • Ambition to expand business and increase capability
  • New Product Development capabilities
  • Supportiveness to MOS annual promotion products
  • Product specifications
  • Quality certification
  • Number of poor quality products
  • Environment of place of  origins/factory
  • Serviceability of contact person
  • Punctuality and accuracy of delivery
  • Records and interactions in delivery service 
  • Serviceability of contact person
  • Response to urgent order and inventory
  • Product return/exchange
  • Manufacturing certification and machinery purchasing
  • Corporate social responsibility
Evaluation Criteria and Scoring Scale for Existing Supplier
Business Philosophy
 (Innovation and technical skills)
Product Quality 
(Quality control)
Lead time and service 
(Serviceability)
20% 30% 50%