The Sub Contractors used in the HIMAX's Supply Network are enterprises with stable, entrepreneurial ownership in all aspects. Every partner has an equal share of responsibility in bringing product forward, and the risk that any of the subcontractors would fail in its performance must be regarded as non existing.
The Sub Contractors will monitor and review potential risks, by identifying them, analyze and evaluate them, and if need be treat the risks at hand. This will be an ongoing process during the entire manufacturing period and will be conducted in cycles due to the fact that the time frame is four years with a continuous flow of repetitive production.
The team will ensure that controls are effective and efficient in both design and operation, and will constantly obtain further information from all parties involved to improve risk assessment in addition to identifying emerging risks.
Access to information between the Sub Contracts in the Supply network will be working freely, with no restrictions concerning the ability to identify, obtain and make use of data or information between the parties in the best effective way. E-mails, digital photos, Skype, Wechat and other communication lines will ensure acceptable access to information.
As for Key parties’ roles and responsibilities in the supply chain, they will be identified into three major categories:
This involves all Sub Contractors, where once the order is delivered, it will be analyzed, materials will be ordered, production will be planned, and most critical path strategies will be adopted.
HIMAX will ensure a smooth production without quality problems and flaws, the planning of the work force. Production procedures etc.
HIMAX will take charge of the produced commodities, and ship them using reliable freight forwarders and shipping suppliers, safeguarding an on-time delivery, to the customers. As for unique elements, particular to the requirement and contract, the team will analyze if such elements exists in the risk assessment process. From a current standpoint, none of the commodities to be produced are unique in the sense of being rare. HIMAX has long lasting experience of producing different outdoor footwear and offering PPE products, using their experience and skills in addition to their own laboratories/the third party laboratories to randomly check the production quality of the commodities.
As for availability of raw materials, ie leather/textile etc, firstly, the quantities presented in the order is planned per month/per year, which ensures that the risk of not receiving ordered material in a timely manner is practically non-existing. None of the materials used in producing the commodities for the order is of such a nature that it would be in a risk zone of being difficult to obtain. More of a key point here is the quality aspect of delivered materials. Availability of raw material is not a major concern. The quality assurance of such materials is key, and will be dealt with accordingly so that any flaw in delivery from any given material supplier will be rectified immediately, to avoid delivery delays in the manufacturing process.
As for economic risks and currency volatility, the Sub Contractors in the supply network have good standing in terms of credibility and the ability to receive credit from financial institutions, enabling the order to go through in all its stages of manufacturing and shipping. Currency volatility will be handled by securing the currency of USD against the RMB immediately upon receiving the order.