Sustainable Supplier Management

Grape King Bio has established a sustainable supply chain management framework to control supply chain risks and improve suppliers' sustainable performance. Through sustainability regulations, sustainability risk surveys, on-site audits/improvement measures, and a smart diversified communication platform for suppliers we hope that suppliers will work together with Grape King Bio to innovate and develop, realizing the core value of mutual benefits.

The selection and inspection of materials are done from the time of purchase by setting up multiple principles and regulations, with the requirements of passing through domestic and foreign certification for layers of assurance. Futhermore, a batch number management and traceability system are implemented for the most effective management.

We have established a supplier evaluation process covering from the initial qualification review and sample selection to supplier field evaluation and annual supply quality tracking. Each supplier must pass layers of inspection to become qualified. In addition, we have implemented a second source supplier system to ensure smooth supplies.

These departments are responsible for the innovation and development of materials and quality of fungi strains, which have received many awards and certifications. They are an integral part of our business for product safety and research.
  • We have introduced environmental management systems to reduce the environmental impact of the production process. In addition, we prioritize employee health and safety by regularly monitoring occupational safety and health risks to reduce hazardous factors.
  • We have evaluated the introduction of water-saving process equipment and the expansion of wastewater treatment facilities. We have also effectively reduced water consumption and wastewater discharge through improvements in the water recycling rate, reducing the impact on the environment.

In addition to strict plant sanitation management, we have undergone multiple safety tests to ensure quality and safety along with the operation of our food safety team. We place great importance on product tracking and channel traceability, and have set up a management platform for systematic control. In addition to product internal quality, management regulations are also set for the external packaging, promotion, and safety of use. With the establishment of a comprehensive product management system, the product quality and food safety can be ensured.

  • We manage warehouse quality while monitoring and ensuring logistics quality to avoid product deterioration during delivery.

  • We have developed innovative marketing strategies with both physical and virtual sales channels, upholding the spirit of providing the finest healthy and safe products for our customers to consume.

In 2019 we announced our participation in RE100 and have introduced Task Force on Climate Related Financial Disclosures (TCFD) to proactively manage climate-related risks and opportunities.

We have set customer service goals and established multiple communication channels. We value customer feedback and opinions and insist on producing only high-quality products that provide customers with peace of mind and maintain a brand of excellence in the market.

Evaluation of Existing Suppliers

New Supplier Assessments

01
On-Site Evaluation

Supplier shall provide relevant information such as plant management control documents, production history, product hazard analysis or certificate of analysis (COA), together with inspections of the actual production operation areas, and evaluate items such as safety and health, machinery and equipment condition, quality design, material control, process control, finished product control, abnormality correction, customer complaint treatment, labor safety, and corporate social responsibility.

02
Audit Improvement Tracking

After on-site evaluations, Grape King Bio will ask the supplier to respond to suggested improvements, then both parties will exchange opinions and finally conduct a second review of the overall evaluation results and responses. In case of significant deficiencies, the company will suspend cooperation with the supplier until the deficient items are confirmed to have improved.

The main content of proposed improvements can be broadly divided into two categories - hardware and software. Hardware refers to the plant environment and production facilities, such as the optimization of the route planning and strengthening of disease vector control measures, while software refers to the management system, such as the quality of procedures and operation standards and the degree of implementation of their records, so that the operation standards can be followed and supported by records.

Annual Evaluation

Grape King Bio conducts annual evaluations of material suppliers and outsourced factories regularly, evaluating and grading them in major areas: Q (Quality), C (Cost), D (Delivery), and S (Service), as a basis for risk management. Those with a total score of 81 or more are considered A-grade/excellent manufacturers, those with a total score of 65~80 are considered B-grade/qualified manufacturers, and those with a score of less than 65 are considered C-grade/unqualified manufacturers. For established suppliers with significant quality abnormalities or critical material manufacturers, site visits will be prioritized, and 21 ESG-related assessment items are included in the 144 assessment items.

We will stop procurement from unsuitable suppliers and provide consultation and guidance to give clear objectives and timespan for improvement so that suppliers can correct their current situation to meet Grape King Bio’s expectations. Through a solid evaluation cycle and counseling mechanism, we can identify potential problems early, and work together with suppliers for continuous improvement and refinement.

Contractor Management

Grape King Bio's selection of construction contractors is based on provisions of government procurement law and determined through an open and fair process of evaluation, comparison, or bargaining, with priority given to domestic manufacturers. In the selection of contractors, we give prioritize the purchase of products and equipment with energy-saving certificates, water-saving certificates, and energy-saving facilities that meet our specifications and performance requirements in the first place, then assess the risks of the transactions (legal registration and payment terms) before establishing the order.

The company has designed a Hazard Prevention Information Sheet to actively maintain contractors on safety management through counseling, auditing, and promotion, strengthening industrial safety promotion measures and labor safety awareness at workplaces, as well as providing proper safety protection on the work-site, ensuring the safety of all workers.