Supplier Management & Audit

Supplier Assessment

By conducting regular on-site visits and close communication, PixArt can identify the law compliance status of our business partners and assure regulation enforcement. We also conduct regular supplier assessments to grade our suppliers, with subsequent actions taken as follows.

• A grade: Rewarded with potential increased orders at our discretion
• B grade: No rewards or penalties
• C grade: Will be observed for one month. (If improved, production continues; if no adequate progress has been made, production volume may be reduced at PixArt’s discretion.)
• D grade: Production may be reduced at PixArt’s discretion
• E grade: Reduce order quantity, and improvements must be made within a specified timeframe
• F grade: Disqualified (PixArt will terminate its cooperation with a supplier that receives an F grade.)

Supplier Audit

To reinforce supply-chain sustainability management, PixArt has developed a Supplier Control Procedure, which we use to assess and audit our key suppliers and contractors on an annual basis. Our audit team may assess through written documentation or conduct on-site reviews following the Supplier HSF Evaluation Survey.

In the year 2022, we have conducted on-site audits for 17 suppliers and written assessments for 26 suppliers - achieving 100% of our assessment and audit goals. Since all our suppliers comply with the regulations set forth by PixArt, no significant deficiencies or risks were found.