Kyungshin Cable complies with Monopoly Regulation and Fair Trade Act in order to fulfill its social responsibilities. Based on this, we endeavor to grow together with our contractors. In the increasingly competitive global business environment, a company’s competitive edge means securing competitive power in the supply chain. Now, there is a greater possibility that the quality of products produced by the suppliers will be linked to our sustainable competitive advantages in product quality. Therefore, Kyungshin Cable is growing together with our partners by implementing a sliding scale system for unit price according to the change in raw material/exchange rate, technical support and sharing management condition and supporting productivity and quality improvements, etc.
At present, Kyungshin Cable is entirely prohibiting the purchase and use of 6 heavy metals, which are legally forbidden to utilize (lead, mercury, cadmium, hexavalent chromium, brominated flame retardants BB and PBDE), when manufacturing the products. Furthermore, we are continuing to invest in the development of products and design changes in order to avoid using Halogen materials, brominated flame retardants. In order to minimize the consequences that the company might have on environment when operating company, we also conduct research on the development of the relevant technologies/source materials cooperating with the government, clients and research institutes aiming to purchase eco-friendly materials directly.
Kyungshin Cable does not purchase minerals and raw materials from conflict-affected areas. Especially, in some of conflict-affected areas in Democratic Republic of the Congo and around 10 nearby countries, environment is being destroyed recklessly and human rights are abused in the course of extracting industrial minerals, and the sales profits are being used to purchase weapons. In order to prevent the above, we do not use minerals produced in the conflict-affected areas including Democratic Republic of the Congo, and investigate whether the cooperative companies are currently using minerals from such conflict-affected areas, and prohibit the purchase and use of the minerals produced in the conflict-affected areas.
The major portion of the production costs in the cable industry is raw material costs. When making a business plan and operating the business, they are considerably affected by the change in the price of bronze(copper), therefore, in order to alleviate financial burden of our suppliers, we implement a sliding scale system for unit price according to the change in raw material/exchange rate to determine the costs of main raw materials and subsidiary materials when making payment. Also, in order to help the cooperative partners securing money flow, we make payment complying with the due date of maximum 60 days.
Kyungshin cable fully fulfills its social responsibilities by regularly monitoring and evaluating variously intertwined supply chains. We annually perform written evaluation and onsite evaluation relating to the working environment such as our existing and new contractors’ environment and health & safety, etc. According to the evaluation results, they are requested to submit an improvement plan within 1 week in terms of an item requiring improvement. Afterwards, an effectivity inspection is conducted according to the improvement plan in order to determine whether such improvement plan is being implemented adequately. We are aiming for stable management and environment-friendly operation of the business within the supply chains through conducting the contractor evaluation system.
We adopted E-Procurement System in 2014 for effective performance of work with the contractors and the enhancement of the procurement team’s capability. It has improved efficiency of the procurement as the previous quotation and order services are now conducted via this online system. Information, such as the receipt and disbursement status of materials and its supply chains, etc. can be confirmed in real time and shared by the entire organization, the supply chains’ timeline and visibility have improved, and a quarterly discussion and a monthly meeting with the suppliers are held so that their requirements can be adequately reflected in E-Procurement System and any other work.