Agile is always committed to the provision of premium products and services to its customers and emphasizes on selecting quality suppliers. Our supplier management approach places importance on fairness and transparency and ensures our provision of premium products and services. We have established a standardized supplier admission, qualification verification, assessment, selection and removal mechanism.
▪ Public procurement
▪ Communication initiated by suppliers
▪ Recommendations from associated partners
▪ Introduction of quality suppliers through peers or other social connections
▪ Quality supplier resources obtained from third-party assessment firms
▪ Market research, industry associations, internet platforms, etc.
▪ Resources recommended by cooperating suppliers
▪ Suppliers should complete information filing on Agile's supplier and bidding system and provide relevant documentary evidence
▪ We specify strict qualifying criteria for suppliers of various products and services, including energy consumption level and standard of quality certification, and conduct stringent qualification review on suppliers to filter suppliers meeting our requirements, and contact relevant contact person to commence an intention interview
▪ The procurement department joins hands with various other departments to conduct on-site visits/online visits in respect of suppliers passing the preliminary assessment, primarily focusing on environmental protection efforts, including energy consumption in production, carbon emission, emissions of the "Three Wastes", and purification. Afterwards, an appraisal report is prepared for internal announcement of the appraisal results and a supplier may be admitted as a shortlisted entity upon contract assessment.
▪ During the term of cooperation, we evaluate suppliers through means of regular assessment and random inspection, classifying suppliers into five levels of exceptional, excellent, good, satisfactory and substandard with reference to quantitative ratings and daily dynamics, where exceptional and excellent suppliers, under the same circumstances, are entitled to expanded cooperation range, cooperation duration and in-depth participation in the joint research and development of Agile's products and standards; we actively procure new material and process recommendations from partners in the fields of health, environmental protection, intellectualization, etc. Suppliers failing to meet our cooperation requirements may be downgraded in rating or blacklisted.
▪ Suppliers' actual performance in Agile's projects will be simultaneously reflected in the middle platform system with different status labels, such as selectable, non-selectable, frozen and dormant etc., and the information will be shared across the Group for selection in subsequent projects.
▪ Quality management: we have established a comprehensive and sound quality management system, and regularly organize management initiatives, such as factory inspections, unannounced project inspections and material sampling, in our daily cooperation with suppliers to eliminate quality risks.
▪ Suppliers who are evaluated and approved for shortlisting will be included in our candidate pool, and suppliers who are not duly shortlisted are not allowed to participate in any bidding activities of our Company.
▪ In collaborating with suppliers, priority will be given to well-managed, honest and reliable suppliers who possess integrity and value sustainable development. We expect all suppliers to adhere to the following principles, which are significant considerations in our selection and evaluation of suppliers:
Laws and regulations: Suppliers must comply with the laws and regulations applicable to the areas in which they operate when conducting business.
Employment requirements: Suppliers shall uphold the principle of treating each employee fairly and consistently in recruitment, training, promotion and remuneration, regardless of their gender, age, race, color, nationality, origin, religion, language, family status, disability, etc., and prohibit any form of discrimination or differential treatment; suppliers shall follow the principle of making reward according to work, while ensuring employees' rights to working hours, break time, holidays and leaves. Suppliers shall not employ child labor, i.e., minors under the legal age of employment in the place of operation; suppliers shall not employ any kind of illegal and forced labor and shall comply with the applicable local statutory minimum wage levels and self-discipline code; suppliers shall have appropriate communication mechanisms and grievance procedures to enable employees to express their claims and complaints to management.
Safety and quality: Suppliers shall respect and protect the occupational health and safety of their employees, such as providing training to employees on safety and related work practices; suppliers shall meet the quality requirements as agreed in the contract in order to provide products and services that consistently meet Agile's needs and are safe to use; suppliers shall comply with all applicable regulations in relation to quality, health, safety and environment; and shall obtain, maintain and keep renewing all necessary licenses and permits, and operate and report as required.
Environmental protection: Suppliers shall conserve natural resources and reduce the adverse impact on the environment and climate through technical reform, material reuse and other measures; suppliers shall take measures to manage the disposal and discharge of waste, gas and wastewater.
Bribery and Corruption: Suppliers shall not practice or tolerate any form of corruption, extortion or corrupt practices. Suppliers are not allowed to offer or accept bribes or other illegal benefits from business partners.
▪ Suppliers that meet the elimination criteria will be removed from our supplier list at the end of each year based on the evaluation of suppliers and the utilization of supplier list resources.
▪ Our procurement department will arrange mutual visits among senior levels of core suppliers from time to time to establish direct office senior-level interactions and deepen stable cooperative relationships.
▪ We also arrange regular breakouts sessions with our suppliers to announce our latest policies and explore the prospects for sustainable development.
▪ In entering into various economic contracts, suppliers shall also sign the Anti-corruption Agreement" in the prescribed format to clarify the responsibility of integrity. Any supplier who violates the content of the Anti-corruption Agreement shall bear the legal responsibility as agreed thereof, and will be blacklisted and terminated for cooperation by the Company as appropriate.
▪ Should you have any business complaint, you may contact the staff of our procurement department for complaint handling; if it involves integrity reporting, you may report by mail or telephone (whistleblowing mailbox: lianzheng@agile.com.cn; whistleblowing hotline: 020-88839935).
