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Supply Chain Management

Everlight’s Value Chain

Everlight’s customers include the electronics industry, government agencies and education institutions etc., and we provide the most optimal smart lighting products and services to customers. he upstream of the supply chain are mostly raw material suppliers, equipment manufacturers and subcontracting and OEM manufacturers. he midstream and downstream of the industries associated with Everlight include the areas of LED product packaging, smart lighting system development and system integration execution etc. Consequently, the company has competitive advantages in the cost control.

Operational Planning and Financial Performance

Our long-term development plan focuses on the development of energy-saving LED lighting of higher efficiency and brightness. In addition to providing products and services for customers and markets to satisfy customer demands, premium and highly efficient LED lighting components and products are developed and produced to replace traditional lighting equipment in line with the global energy saving trends. With this achievement, Everlight leads Taiwan to the lighting area of the next generation. In addition, a more closely linked international supply chain and partnership relations are established in cooperation with up- and downstream manufacturers to reduce production costs and increase profitability. The global market share is expanded to strengthen overall corporate competitiveness. Taiwan serves as the command center for R&D, marketing, and operation management to realize the goal of sustainable operations and fulfill social responsibility.

The consolidated net operating revenues in 2019 amounted to NTD20.97 billion, a decrease of 13% compared to 2018. The employee benefits expenditures were slightly reduced by 6% in comparison to 2018. The operating costs (including salaries and benefits) reached NTD15.84 billion in 2019, while the annual profits (including salaries and benefits) and the consolidated annual net after-tax profit amounted to NTD850 million. To cope with the demands for technology progress and industry intellectualization, the company actively invests in the research and development of innovative smart manufacturing and manufacturing process safety as well as adjusts the business strategies, along with the consideration of both the corporate sustainability and social responsibility, thereby contributing efforts to the mid-term and long-term profits and growth.

Innovative R&D and Design

For a long period of time, Everlight has committed to establish product life cycle with the integration of reduction of environmental toxics and hazards, reduction of material usage, development of product green design based on the principles of facilitated assembly, increase of energy use efficiency, facilitated disassembly and recycle etc. In addition, the company also systematically integrates products researched and developed jointly with the suppliers in order to achieve the ultimate goal of becoming the customers’ best partner in the value chain of low carbon emission, environmental friendliness and sustainability, in light of creating living of greater convenience, safety and energy saving to users.

With more than 37 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, Opto-couplers and infrared components. Customers 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.

Elite Everlight corporate culture: Execute customers’ demand on the basis of integrity, supreme quality and innovation to achieve excellent performance. Over the years, Everlight has adhered to its principles of “Working together. Moving forward. Never stop fighting” to develop environmentally friendly and energy-saving green products.

Supply Chain Sustainability Management

Everlight is a company with global operations. In addition to the enhanced competitiveness for product quality and project management, the company is also committed to the sustainable supply chain management. Through the methods of “RBA regulations/requirements,” “RBA sustainability risk investigation,” “RBA field audit/improvement measures” and “Improvement of supplier ability,” etc., the company establishes complete supply chain management mechanism in light of heading toward a sustainable future with the suppliers jointly.

Everlight has paid great attention in the fields of social responsibility, environmental protection, corporate ethics and operation management, etc., for a long time. Accordingly, the company establishes the Everlight Supplier Code of Conduct in accordance with regulations and spirit related to human rights, labor standards, environment and anti-corruption, etc., in relevant international initiatives and requirements, including the UN Global Compact, Universal Declaration of Human Rights, and Social Accountability 8000 International standard (SA8000).All of the business activities of Everlight suppliers shall comply with this Code and the requirements specified in the laws and regulations of the countries where their operations are located. This Code is applicable to suppliers and their subsidiaries, affiliates and contractors, etc., as well as parties providing products or services of Everlight.

Everlight carefully handles the details in all processes of product manufacturing and after-sale service. Prior to signing contracts with suppliers and contractors, the company provides sufficient explanation on the work content, specification, schedule, and safety matters, etc.in order to allow the contractors to completely understand the content of the business and the risk thereof. During the contract signing, the company clearly specifies the contract price, payment terms, responsibilities of both parties, rights and obligations, penalties, etc.in the contract in order to use such content as the basis for contract performance of the contractors.

Supply Chain Management Commitment

For the external purchase of the company, in addition to the evaluation of the impacts on the production, service and operational procedures, the company also considers the corporate social responsibilities and reputation risk. Accordingly, Everlight complies with relevant regulatory obligations as the basis for the supply chain management in order to incorporate the labor rights and interest, environment protection, safety and health of the supply into the risk control points, thereby identifying high risk suppliers. In addition, according to the assessment result, the company establishes improvement measures to assist suppliers to improve the management level, in light of reducing the operating risk and costs of the company and suppliers, thereby establishing partnership with sustainable growth.


Conflict Minerals Management

Everlight supports the Responsible Minerals Initiative (RMI) of the Responsible Business Alliance (RBA) to request suppliers to purchase non-conflict raw materials. Since 2018, the company has completely control products using mineral materials from conflict regions in Africa, and uses the management tools recommended by RBA to perform controls. In addition, the company also establishes the due diligence structure according to the “Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High Risk Areas” announced by OECD.

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 and SA8000 to define our CSR policies. We also request our suppliers fulfill their social responsibilities and comply with the RBA/ SA8000 principles. In 2019, all of our new suppliers signed and returned the “Suppliers’ CSR Commitment” and “RBA Code of Conduct Compliance Declaration,” hoping that all of our suppliers can participate in human rights protection, environmental protection, and sustainable development.

In addition to the code of conduct requirements for suppliers, Everlight also establishes supply chain sustainable development strategies, which mainly includes the zero tolerance for integrity issues, attention to employee rights and interest, local purchase, etc. The company further executes actual purchase actions to provide positive impacts on the suppliers. During the screening of new suppliers, in addition to the compliance with professional requirements, consideration on the quality, environmental safety and health requirements, price, delivery date, production origin etc., it also includes the ethical management status of suppliers, as well as the consideration on whether suppliers are equipped with relevant certificates of ISO 14001, OHSAS 18001, etc., all of which are considered to be factors for screening. Furthermore, for suppliers in cooperation, to achieve continuous sustainable development, Everlight promotes sustainable actions to the supply chain and educates suppliers about the concept of sustainability as well as establishes basic requirements, in order to gradually increase suppliers’ awareness on sustainability issues, thereby achieving thorough implementation of a sustainable supply chain.

Product Quality and Certifications

Everlight rigorously adopts the ISO 9001 international standard and has established a complete quality management procedure for all stages from product design, procurement, manufacturing to warranty service, in order to ensure that all stages of the product manufacturing comply with the contract requirements, laws as well as company quality policy and goal. For such set of quality management system, certification has been obtained in 1996, and has been operated in actual practice properly through PDCA (Plan, Do, Check, Act) management cycle. In addition, the system has continuously qualified the third party’s verification annually.

To cope with the higher demands for product quality of domestic and foreign customers in the future, the company enhances training and ability of product quality management personnel and also implements the quality management procedures and document record controls thoroughly. As the Quality Assurance Division performs the promotion and guidance, with such activities, the company employees are able to timely understand the latest quality procedures and correct concepts, in light of improving product and service quality, thereby increasing the competitiveness. In addition to the qualification of ISO 9001:2008 quality management system, the company has also obtained the ISO 9001:2015 conversion certification in June 2018. Everlight is dedicated to the product quality, occupational safety, health management and environmental protection, and the outcome has been widely recognized and trusted by domestic and foreign customers. In the future, the company will continue to promote the update and verification of the management system according to the revision and amendment of international standards.

Control of Hazardous Substance

To achieve the goal of selecting environmental friendly materials and to comply with the international regulations as well as the customer specification requirements at the same time, Everlight rigorously requests suppliers (including outsourced contractors) and the internal unit of the company to satisfy the regulatory requirements for “product without prohibited/restricted substances.” In addition, the company also establishes quality agreement with suppliers to explicitly specify that the products provided by the supplies shall comply with the EU’s RoHS standards and relevant environmental protection regulations. We expect to provide low toxic, low pollution products to customers through green supply chain management in order to reduce hazards to the environment of human bodies.

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.

Certification: https://www.everlight.com/aboutusdetail.aspx?cseq=2&seq=4

Quality Policy: https://www.everlight.com/aboutusdetail.aspx?cseq=2&seq=2

Safety Certifications

Everlight is committed to the compliance with international safety and health standards, customer safety specification requirements, and also integrates the improvement recommendations made by the safety regulation and certification team over the past years, incorporates the product safety and health from the aspects of product design, production and sales into consideration and management, in order to provide products with use safety to customers and users. Everlight has established product safety management process for the product development stage in order to comply with the international safety regulations and customer safety specification requirements, as well as to prevent product reworks, monetary and labor wastes.

Everlight shows the quality advantage and production process capacity through the introduction of safety certifications with credibility to enhance its competitiveness in the market. Meanwhile, we also provide customers with optical coupler components that meet the safety standards of customers based on different application demands to ensure product safety from the customer end, which achieves the goal of simultaneously attending to product safety and excellent performance. Everlight products receive RoHS, REACH and Pb free certifications. In 2019, Everlight products did not violate any environmental regulations, have wrongful product (or service) information or label, or involve any violation of the regulations on the health and safety of products or services, and no products were prohibited for sale or pulled from shelves in accordance with laws.


 

Customer Service

Customer satisfaction is the core value of Everlight provides high standard and innovative quality and service to customers with exceptional execution in order to become the best partners of customers. Everlight establishes professional service team for customers in order to handle business acceptance, product research development and manufacturing, quality, delivery, cost and after-sale service etc., as well as to propose countermeasures and overall solutions accurately and promptly to customers’ problems and feedbacks.

To satisfy customer’s demand for timely delivery, Everlight has implemented E-processes for procurement, logistic and cash flow, etc., and uses electronic information as the operation basis. In addition, the company also integrates the information of each terminal points of suppliers, customers and banks, in order to ensure management information and delivery accuracy and timeliness. Furthermore, to shorten the time for technical support, transportation and delivery as well as the after-sale service, Everlight has established production facility sites, branches and logistics warehouse globally in order to approach customers and to timely satisfy customer demands. In 2019, there were no complaints against Everlight stating that the company infringed on customer privacy or lost customer information.

“Customer satisfaction” is the most important core value for the operation of Everlight. Through the understanding and analysis on the customer satisfaction, such understanding and analysis become key basis for Everlight’s continuous improvement of product and service processes in order to create values matching with the customer demands at greater extend. Everlight hopes to continue to improve service quality for customers. Therefore, the company conducts satisfaction investigation through surveys. Customers may evaluate the overall service quality of the company, which allows the company to understand the evaluation on service quality of Everlight from its customers and to grasp the expectations and suggestions on the company. These expectations and suggestions are the references used for Everlight to improve service quality and enable the company to understand which aspects Everlight should improve on.

In October of each year, Everlight conducts the annual satisfaction questionnaire survey, and the survey subjects include all customers with a shipping amount above NTD1 million, and customers of all transactions of automobile products for the period from September of last year to August of the current year. For the 2019 customer satisfaction survey questionnaire, the questionnaire survey items were adjusted according to the company’s policy, and the survey content included: Order and product supply/contact window/new product development/product quality. Although the quality survey result did not reach the high standard of 90 points expected by the company, the result was still maintained above 80 points, indicating customers’ continuous support and recognition of the company’s service quality. For 2020, we will work hard to reach our goal of 90 points.