Supply Chain

Pursue win-win growth by fulfilling
our social responsibility with our partners

Supply Chain Management

Introducing HL Mando’s competitive supply chain and optimal SCM strategy.

Global ESG supply chain management council

Three (3) teams under the Head of the Central Purchasing Center cooperates with other supporting teams to manage the supply chain based on ESG and to respond flexibly to the changing external environment.

Supply Chain Management Strategies

  1. Stipulate and signoff on the Code of Conduct for partners

  2. Establish a partner ESG assessment system

  3. Develop a conflict minerals policy

  4. Align partner assessment with REACH(EU’s new chemical substances management system)

  5. Support for environment and safety and offer training

Partner ESG Assessment Process

  1. Selection and notification of partner firms
  2. Online self assessment
  3. Interim report
  4. Outcome report
  5. Empowerment

Conflict Minerals Management

Prohibit the use of the conflict minerals from conflict regions. Endeavor to realize social responsibility with our partners.

MMDS (Mando Material Data System)

The MMDS ensures that our employees can immediately refer to international regulations and practical precautions concerning 273 substances by linking product design information with component information.

  1. 1st Phase) Receive
    and review
    substance data
    1. Request parts data
    2. Manage data reception coverage
    3. Review parts data
    4. Review product data
  2. 2nd Phase)
    Manage
    standards
    1. Manage regulatory data
    2. Manage internal verification standards

Win-Win Partnership

Pursue sustainable growth
with our partners.

Partner Management System

Categorize new partners into potential and eligible partners and build long-term mutually beneficial relationships.

Registration of a New Company

The Registration Process for a Potential Company
  1. Join G-TOPs
The registration criteria for potential companies
Credit evaluation
Credit rating(S&P BB- or higher, etc.)
Sales
KRW 10.0 billion or more as of the previous year(conditional approval)
Length of operation
3 years or longer(conditional approval)
Certification
IAF 16949 (ISO 9001 for a raw material company)
NSQ
Mando Survey Form writing out
The Registration Process for a Tradable Company
  1. Register as a potential company
  2. Sign the NDA
  3. Review quotation for mass production
  4. Implement PSA
  5. Conduct management due diligence
The registration criteria for tradable companies
Quotation review
Review by the person in charge of purchases
PSA
Pass (80 points or higher)
Due diligence
Based on the due diligence results of Credit rating agency

Fair Trade Principles

Comply with the ‘Rules of the fair transaction in subcontracting’ and conduct the fair transaction with our partners based on our philosophy of fairness, openness and forming a win-win partnership.

4 Practice Guidelines for Fair Trade

  • Sign desirable contracts to promote win-win partnerships between large businesses and SMEs.
  • Select suppliers in a fair manner.
  • Issue and retain written documents in subcontracting transactions.
  • Establish and operate an internal subcontracting transaction review committee.

Protecting IPR(intellectual property right)

HL Mando employees always respect the intellectual property rights of the third partyies, and established the ‘Intellectual Property Compliance Rules’ and conduct business accordingly.

IPR
(intellectual property right)

  • Purchase
  • design
  • development
  • outsourcing
  • consignment
  • export/import
  • sales
  • production

Support and Communication

Grow together as a true partner.

  • Support for Partner Training

    Exchange information and operate customized training programs to support growth of our partners.

  • Financing Support for Partners

    Conduct three financial support projects to enhance business management of our partners.

  • Technology Support for Partners

    Provide some of our intellectual property rights to our partners so that they can strengthen their technological competitiveness.