Sustainable Supply Chain Management
▶️Distribution Management and Service Strategy ▶️IDM/Fabless/IC Design Supplier Assessment
▶️Management of General Affairs Suppliers
For upstream semiconductor suppliers, the role of semiconductor distributors is to support suppliers' sales of semiconductor components; for downstream product manufacturers, the main function of semiconductor distributors is to assist customers in purchasing semiconductor components that are indispensable to manufacturing.
For upstream semiconductor suppliers, the role of semiconductor distributors is to support suppliers’ sales of semiconductor components; for downstream product manufacturers, the main function of semiconductor distributors is to assist customers in purchasing semiconductor components that are indispensable to manufacturing. In addition to dealing with various semiconductor components with complex specifications that are irreplaceable. The supplementary service and value proposition cover an even more extensive range that includes financial services, material management, logistics, technical support, etc. The professional services include (1) Product Promotion, (2) Inventory Management, (3) Order Management, (4) Sales Management, (5) Logistics Management, (6) Financial Management, and (7) Information Management.
Digital Platform
Smart Logistics and Warehousing
WPG Holdings adheres to the concept of “customer-oriented” for its logistics management, continuously improving service quality, and dedicates efforts to provide high-quality logistics services to customers while constantly seeking breakthroughs and development.
WPG Holdings established a transparent platform that connects internal and external information, transferred routine work to the online system, and manually processed variable work items offline, in the hope of creating a collaborative ecosystem with our partners. Smart transportation and smart diversion have significantly increased our warehouse efficiency. Coupled with the integration of real-time information on the management dashboard, all management indicators and equipment status were enhanced and tracked.
The Operations Planning Office and Logistics Service Group of WPG Holdings are mainly responsible for warehouse operation analysis and management, warehouse operation management and audit in each district, operation process design and improvement of operations planning, and the management and optimization of operations planning system, etc. In order to ensure effective policy implementation, the responsible units conduct audits at least once a year on an irregular basis. Regional logistics shall propose improvement measures and schedules for identified deficiencies, and the Operating Planning Office of WPG Holdings is responsible for coordination and supervision. WPG Holdings conduct audits on outsourced logistics companies on an irregular basis and determine whether or not it has reached target indicators through monthly KPI assessments. Once they failed to meet the targets, they need to explain the review business operations and prepare a corrective action report. If they failed to meet the targets for the second time in a row, the shipment volume will be gradually reduced until the identified issues are rectified.
Supply Chain Management
Types of Suppliers
As a semiconductor component distributor, WPG Holdings has two major types of suppliers: IDM/Fabless/IC design supplier and general affairs supplier.
IDM/Fabless/IC Design Suppliers
WPG Holdings plays the role as a distributor (agent/ wholesaler) in the semiconductor component supply chain, and does not engage in manufacturing. However, as a member of the value chain of the semiconductor industry, WPG Holdings proactively monitors the products it distributes/represents, verifying whether these products comply with environmental and social regulations. By publicly disclosing information on the official website, such as whether key suppliers adhere to environmental laws, WPG Holdings helps enhance the transparency of the overall value chain and raise consumer awareness. This demonstrates WPG Holdings’ influence within the value chain and contributes to the creation of a globally sustainable electronics supply chain. By the end of 2023, WPG Holdings has represented over 250 IDM/Fabless/IC design suppliers. Based on the “operating revenue share,” the key suppliers were identified. The top 30 major suppliers, which accounted for more than 80% of WPG Holdings’ total revenue, were mainly located in the United States (11 companies), Taiwan (7 companies), China (4 companies), Europe (4 companies), Korea (2 companies) and Japan (2 companies). The U.S. suppliers ranked the first in terms of the turnover, while Taiwan suppliers ranked the second.
Under the Global Sustainability Initiative, WPG Holdings supports Conflict Free Mineral Smelter Program developed by the Responsible Business Alliance (RBA) and the Responsible Minerals Initiative (RMI), and regularly checks the supply chain information of the top 30 key agent suppliers for source of minerals and smelters through the Conflict Minerals Reporting Template (CMRT) or SD Form each year. At the same time, we also place emphasis on chemical safety management and conduct public information disclosure of the results of our due diligence work.
General Affairs Suppliers
For general affairs suppliers, WPG Holdings has formulated a complete supplier policy and identified supplier risks, devoted to assisting supplier partners to continuously improve management measures.