Pre-qualification: We ask the vendors to fill out the “Vendor Information Form” for the preliminary qualification review. The staff at purchasing department then make a preliminary assessment of the vendors according to the “Vendor Information Form,” including their turnovers, main customer and products, and processing type. If a vendor passes the preliminary review, a field survey would be conducted; if not, its qualification would be cancelled.

Field investigation: The staff from the purchasing department notify the staff from quality assurance, and together they conduct field survey and audit regarding the vendor’s capabilities for manufacturing and quality management capability. The purchasing department fills out the results of the field survey on the “Vendor Field Survey Form” and “New Supplier Audit Form” and submit these documents to the authorized supervisor for review. Once the audit is approved, a “Qualified Vendor List” will be established; if not, other potential vendors will be cultivated.

LevelGrades Description
Pass (70 points or above)Suggestions for improvement are made to the suppliers; regular checks are conducted.
Need re-evaluation (50- 70 points)Suppliers need to propose action plans for improvement; unqualified items are re-audited to ensure that problems are solved.
Disqualified (below 50 points)Suppliers fail to meet the quality requirement and cannot become an official vendor.
Number of New Suppliers Evaluated032
Total of Suppliers129131109
LevelPass Rate Grade Range
A(≥85%)The supplier’s system is good and needs to be maintained; the supplier reaches the standard as a supplier in Vietnam.
B(70-84%)The supplier’s system is average and needs to be improved; the supplier reaches the standard as a supplier in Vietnam.
C(50-69%)Improvements are required in six months, and then supplier would be continuously audited; the supplier would be disqualified if it fails to reach the B level.
D(<50%)The supplier’s system is poo; the supplier is removed from the Vietnam system.
Number of New Suppliers Evaluated445
Total of Suppliers470476425