Coway has annually conducted one general assessment on suppliers under the conviction of shared growth, that is the ‘Fostering of Small Giants through Strengthening the Competitiveness of Suppliers. In 2015, Coway established a sustainable type management system by adding legal and social aspects such as industrial safety, environment and labor contract to the existing partnership assessment items and it is scheduled to be implemented from the year 2016 in full scale.
Coway’s assessment on suppliers is carried out basically for actual condition assessment, performance assessment, and managerial stability, being operated with such a type that points are additionally added to the company with excellent innovative activity and communication. Assessment results are classified from A grade to D grade. For excellent partners (A,B), the expansion of order quantity and the qualification for consultation member group are given. But for weak partners(C,D), penalties of restricted development and quantity reduction are given. If any company receives D grade for two consecutive years, Coway stops trading.
Coway implemented a general assessment targeting 73 suppliers in 2015. From the assessment result, the general score of suppliers was 86.9 point, which was increased by 3.5 point compared to the previous year, and the ratio of A, B grades for suppliers also was 86% increased by 21% compared to the previous year. Especially, 28 companies were classified to a weak partnership company in 2014, but in 2015, 10 companies were improved successfully.
Biennially, coway conducts satisfaction surveys for every supplier. Since 2011, supplier satisfaction have continued to increase.
In 2016, an assessment has been introduced, based on CSR management items, to strengthen CSR supply chain, and a reward system has been introduced for excellent suppliers to give incentives for management improvement and innovation pursuit and to stabilize win-win cooperation structure with Coway.