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Supply Chain Management

Operational Planning and Financial Performance

The Company and our subsidiaries have positioned ourselves as a total solution provider, integrating the product development roadmaps of major material suppliers and organizing our cross-functional teams (R&D/sales/marketing/business planning) to establish product development plans for the next 3 to 5 years. Equipment is also planned to build up necessary support (testing systems, talents for core technologies, advanced planning of key materials and information on the global lighting market). Working with our upstream and downstream partners helps us build a tighter global supply chain and collaborating partnership that reduces production costs, improves profitability, expands global market share, and improves our overall competitiveness. Taiwan has become our headquarters in R&D, marketing and operations management to realize the sustainability goals and social responsibilities.

In 2017, Everlight experienced no legal proceedings involving political donations, anti-competitive behaviors, antitrust or monopolies. In 2017, the consolidated net operating income was NTD 27.31 billion, experiencing a 6.94% decline over 2016. The overall operating cost (including salary and benefits) in 2017 was NTD 20.96 billion, and the consolidated net profit after tax for the year was NTD 1.25 billion. The direct economic values generated and distributed are as follows:

Innovative R&D and Design

With more than 30 years of experience in the LED industry and specialized R&D, sales and marketing teams, Everlight is able to provide comprehensive product solutions to serve different client needs. The product line includes high-power LEDs, SMD LEDs, lamps, lighting components, LED lighting modules, digital displays, optocouplers and infrared components. Clients can find the best packaged products at Everlight suitable for their requirements. Only by using the appropriate LED products can we achieve the best product efficiency and quality.

Traceability and Procurement Management

Everlight conducts systematic tracking and management and vigorous control of raw materials, starting from the research, development and manufacturing of products. We also consider the potential impacts to the society and natural environment as part of our operational and development strategies. We introduced the RBA code of conduct in 2016 to define our CSR policies. We also request our suppliers to fulfill their social responsibilities and comply with the RBA principles. In 2017, there were 37 suppliers who provided their guarantees with a "Suppliers' CSR Commitment" and "RBA Code of Conduct Declaration". We expect all our business partners to participate in human rights protection, environmental protection, and sustainable development.

Everlight has established "Supplier Management Measures". Before signing with a new supplier, the Company conducts supplier assessment based on the RBA code of conduct. All suppliers and distributors are required to sign the "Honesty Letter of Commitment". Suppliers also sign the "Suppliers' CSR Commitment", "RBA Code of Conduct Declaration", "Letter of Commitment to Not Use Conflict Minerals" and "Suppliers' Certificate of Non-Use of Prohibited Substances" in order to assess the environmental, human rights, social impact, integrity and honesty factors. These measures ensure their quality, workplace safety, fair treatment of their employees so they feel respected dignified, environmental protection and ethical conduct. In 2017, we incorporated IS 14000 and RBA policies into our supplier management and assessment procedures. Currently, 64% of our raw material suppliers were the filtered results of our assessments. We expect the RBA code of conduct to encourage more suppliers to participate in the promotion of social responsibilities.

Product Quality and Certifications

In response to RoHS and REACH and harmful substances control requirements from customers, the company introduced IECQ QC080000 along with the existing ISO 9001 management system to ensure that all products meet the requirements of regulations and customers. The quality policy “establish green supply chain and satisfy customers’ demand with high quality products along with efficient services” of the company is to expect and require the company by integrating management spirits of three major quality systems of IECQ QC 080000, ISO 9001, and TS 16949.

All our lighting products passed the BSMI certification, including CNS 14115 and CNS 14335. Optocouplers are the most important safety components in Everlight's product line and all passed the certifications of various agencies. Manufacturing plants are also inspected by strict safety regulations on a regular basis to guarantee that the manufacturing plant and products are in compliance with safety regulations.

Customer Service

Every October we conduct an annual satisfaction survey with our clients. The survey targets are the clients who have received more than NTD 1 million of our deliveries for the past twelve months, from October of the previous year to September of the current year. The survey results of 2017 showed that due to the overall economic downturn, both ordering and delivery scores declined to a certain extent, while other scores were just slightly lower than that of 2016. However, the overall average of customer satisfaction remained above 80. Thought not meeting our expectation of 90, it showed how our clients were willing to continue to show their support and affirm our service quality. For 2018, we will work hard to reach our goal of 90 points!

The overall average score and the average score of each item in the past three years customer satisfaction survey are as follows: