Brogent's immersive simulation amusement rides are created by integrating various different systems and advanced technologies. To manufacture stable and safe products, mechanical manufacturing, electrical control, audiovisual systems, and safety certification systems in the upstream industry chain must be integrated to successfully create various next-generation entertainment facilities supporting the latest forms of media.
Brogent has established complete supply chain management regulations and measures, including supplier management principles, new supplier review system, and supplier risk classification, and supplier management (including evaluation and consultation). In addition, Brogent focuses on issues of quality and safety, endeavoring to optimize the supplier cooperation models, guide suppliers to grow together, work together to improve immersive simulation technology, and fulfill CSR to achieve sustainable operations.
Supply Chain Management
- By using the same parts for similar equipment, we can purchase all required parts by offering one contract, saving on expenses and allowing us to receive parts quicker.
- Develop new medium and small-scale products.
- Currently possess 549 suppliers, one supplier newly-added in 2022.
- Local suppliers selected for procurement of large steel frames for European and American projects, allowing us to reduce carbon emissions from transporting and shipping from production facilities.
- In response to the continued impact of the pandemic and to the Russian-Ukraine war which have caused unbalanced supply and demand for raw materials, as well as to port congestion that has disrupted delivery dates, and an increase to shipping costs, we have worked together with our projects and production management departments to come up with response plans. By promptly responding to messages and adopting response measures, we have been able to save approximately NT$7 million on material costs, while also ensuring that we deliver on our projects on time.
- Suppliers installed solar panels to conserve energy and reduce carbon emissions, generating approximately 840,000kWh of solar power from July to December 2022.
Supplier Management Principles Brogent selects suppliers based on three main factors: Quality, Schedule, and Cost. These management principles allow us to ensure the stability of provided materials and work quality. We see suppliers as our important business partners and seek to create a sustainable supply chain that benefits both us and our suppliers, allowing us to work together to corporate sustainable management and mutual growth. Whether or not a supplier possesses a green energy and environmental protection certificate or label is an evaluation item that we consider in our supply chain sustainability evaluation, and we prioritize working together with suppliers who possess these labels. Between suppliers who can provide the same services, priority would be given to suppliers located closer to us, reducing the distance which our employees have to travel and the amount of air pollution generated by product shipping. Supplier Risk Management Brogent's suppliers can be divided into two major categories, those being general materials suppliers, and contractors taking on outsourced work. As of 2022, Brogent has 549 suppliers that we work together with. Based on a risk assessment conducted as part of the purchase management process, as well as on the purchase risks and purchase prices identified in our management procedures, Brogent classifies suppliers into four risk quadrants, and applies different management methods accordingly. Supplier Cooperation Regulations As part of our new supplier evaluation, we conduct an initial assessment of new suppliers that takes into consideration their amount of capital, their operating status, their production capacity, and their track record. Based on the circumstances, we then determine if an on-site assessment visit is necessary. When working together and signing a procurement agreement or procurement order with new suppliers, we request that suppliers pledge to comply with the Brogent Group's sustainability development requirements, protect human rights, not use child labor, and to not discriminate on and conduct employment, compensation, and employee promotion issues fairly. Additionally, suppliers are required to abide by local labor safety and health laws and regulations, and to establish rules to create a safe and healthy working environment. Supplier Evaluation Supplier Evaluation and Screening Principles Supplier Evaluation Process Explanation of Supplier Assessment Grades 2022 Supplier Assessment Grades and Results Supplier assessments are conducted through either an electronic questionnaire or an annual evaluation. Cases are randomly selected for assessment through electronic questionnaire from all accepted supplier transactions after supplied materials have been accepted into our warehouse. Questionnaires are returned in over 98% of cases. Afterwards, suppliers are selected to undergo an annual evaluation based on information collected from these questionnaires, and the transaction information for each supplier (transaction amounts and suppliers requiring special focus). This annual assessment includes assessment items on environmental, occupational safety and health, and labor and human rights issues. We conducted a supplier assessment for 5 suppliers in 2022, with average evaluation scores falling between 78 and 82. Two suppliers were awarded Grade A. Although there were a few abnormal quality situations, there were corresponding improvement measures to advoid the same situation from happening again.