An Overview of Supply Chain

Businesses selecting local suppliers can not only fulfill their social responsibility to the community but also reduce the environmental impact resulting from transportation and distribution over long distances. In 2020, 92.51% of GIGABYTE’s first-tier suppliers were located in Asia, followed by 3.74% in the Americas, and 2.4% in Europe. GIGABYTE adheres to local procurement in order to maintain productivity and continuity of operations as well as improve local economic development.

Local Procurement Rate

The local procurement rates at all of GIGABYTE’s main manufacturing locations (i.e. Nanping, Dongguan, and Ningbo) exceed 75% in recent years. In 2020, due to the adjustment of manufacturing outsourcing factories, the local procurement rate returned to more than 80%.

Local Procurement Rate in the Past 5 Years

[Note 1] Local: The locations of the material production sites are in the areas
              where GIGABYTE’s main manufacturing bases are located.

[Note 2] Procurement amount: calculate based on the purchase amount of the 
              year.

Supply Chain Management Policy and Risk Management

In 2018, GIGABYTE officially issued the “GIGABYTE Guidelines of Sustainable Procurement” which applies to the Headquarters, Nanping Factory, two factories in China, and the subsidiaries with substantial influence in Taiwan. We commit to regarding the “Code of Conduct for Responsible Business Alliance” issued by the Responsible Business Alliance (RBA) as the highest guiding principle. 4 major management aspects (including 15 sub-goals) and 4 zero tolerance regulations are set to assess the risk of a supplier. When selecting suppliers, other than the basic requirements like quality, delivery, service, cost, etc., we also conduct investigations and regulations for environmental management systems, occupational safety and health systems, corporate social responsibility, hazardous substances, etc., to ensure that the chosen suppliers are in compliance with sustainable procurement standards.

4 Management

Product quality, production and manufacturing ability, service, deliver time, price.

ISO 14001, legal compliance, environment manenegement measures.

GIGABYTE Hazardous Substances Management, international standards and regulations of chemicals management

Sustainable supply chain evaluation management system, labor human right, conflict minerals, ISO 45001, corporate ethics.

4 Zero Tolerance Regulations

  • Child labor
  • Forced labor / prison labor
  • Discharge of untreated toxic and hazardous substances or materials

  • Behaviors that cause immediate injury to employees

Download the GIGABYTE Guidelines of Sustainable Procurement (Chinese version only)

Identification of High-risk Suppliers

GIGABYTE uses pre-assessment and ratings to classify new and existing suppliers into A, B, C, or D grades every year, and simultaneously conducts re-assessments and mentoring. The suppliers graded as high-risk D would be screened out, afterwards, regular assessments are conducted monthly or quarterly to ensure consistent quality of the supply chain.

In 2020, GIGABYTE audited 49 suppliers for RoHS, quality, and CSR performance. The RoHS and quality audit found that most problems at medium and high-risk suppliers were related to product quality. We will mentor these suppliers and re-assess their eligibility as approved suppliers. As for CSR performance, the suppliers were assessed in accordance with the RBA Code of Conduct and the result show that all were good (scored over 85). The average score was 97.33. While comparing the audit finding from 2017 to 2020, we found that in addition to a steady increase in auditing scope, the scores the suppliers received have increased year by year. That means, by continuous advocacy and mentoring, GIGABYTE has helped our supply chain partners fulfill their corporate social responsibility.

Audit Result of Quality System/ RoHS
Audit Result of Supplier CSR Performance