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TWM is a company that provides integrated service in "T.I.M.E.," namely telecom, Internet, media and entertainment. We worked with over 550 suppliers in 2020 in 6 categories. The critical suppliers are identified based on the amount of procurement and their materiality. Our global procurement amount reaches NT$40.2 billion on a yearly basis, including mobile phone products, telecommunications/communications and network equipment. Among them, consumer electronics takes up the highest percentage in terms of procurement expenses.
| Procurement Expense Analysis (Pie Chart) | ||
|---|---|---|
| Six Categories | Quantity of Suppliers | Proportion of Procurement Amount |
| Consumer Electronics | 102 | 53.27% |
| Telecommunications Equipment | 67 | 35.54% |
| Engineering | 125 | 6.27% |
| Information Service and Equipment | 155 | 3.95% |
| Marketing/Consulting Service and General Service | 94 | 0.69% |
| Renovation | 33 | 0.29% |
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| Identification of Tier-1 Critical Suppliers (Pie Chart) | ||
|---|---|---|
| Six Categories | Number of critical Suppliers | Proportion of the number |
| Engineering | 40 | 39.6% |
| Marketing/Consulting Service and General Service | 5 | 5% |
| Information Service and Equipment | 19 | 18.8% |
| Telecommunications Equipment | 12 | 11.9% |
| Consumer Electronics | 23 | 22.8% |
| Renovation | 2 | 2% |
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TWM reinforces its supply chain resilience through local procurement and ESG risk management. In 2020, TWM's local procurement totaled at 39.4 billion, accounting for 97.95% of the total annual procurement. TWM enhances the resilience of its supply chain through three dimensions:
1. Optimizing supply and transportation routes: TWM has integrated transportation costs and carbon emissions from logistics and transportation into its supply and transportation route planning. We hope to strike a balance between transportation costs and carbon emissions by optimizing existing logistics routes to reduce environmental impact.
2. Green procurement: TWM sets corresponding environmental standards for different procurement items, as well as increasing the procurement volume of products and services that are above standard. In 2020, the amount of green procurement reached approximately NT$109 million yuan.
3. ESG risk assessment: TWM requires suppliers to conduct self-assessment for ESG performance, as well as conducting written and on-site visits to confirm the authenticity of the self-assessment results before carrying out risk identification. The suppliers are require to improve on high-risk items.
