Supply chain management
See how TYM aims for mutual business growth with our trading partners and suppliers through fair trade practices and management processes.
By complying with fair-trade related guidelines, laws and regulations within TYM, we preventing the unexpected costs and damages that arise from strengthening unfair trade practices. Externally, TYM’s fair trade policy induces and promotes free and transparent market competition, which is a culture TYM wants to take the lead in creating.
To overcome lack of clarity on fair-trade regulations and to promote accountability and transparency on whether fair trade regulations have been complied with, TYM has introduced four guidelines to observe and practice fair-trade.
- Signing contracts for win-win partnerships between large and small businesses
By sharing all necessary information on the guidelines, steps and requirements for businesses to enter contracts with TYM, we guarantee transparency and stability of business activities and achieve practical mutual development with current and prospective business partners. In addition, we have opened an anonymous communication channel for potential partners theough the Cyber Petition form, and opened up channels to accept proposals from new companies that want to do business with TYM.
- Selecting and managing business partners
In accordance with ISO procedures, TYM conducts reasonable and objective management of business partners. This includes evaluation and registration of prospective business partners, regular evaluation of existing business partners, training and guidance for business partners and follow-up procedures.
- Establishing and running an internal review committee for subcontractor transactions
To proactively and autonomously counter unfair trade practices, TYM establishes and runs internal review committees to prevent violations of the law at the working level and secure the fairness of subcontractor transactions. The internal committee convenes once a month and can be called to convene at any time in case pending issues arise. Review items include fair conclusion of contracts, pricing processes for subcontract transactions of at or above a specific amount, the legality of relevant laws such as those around subcontracting, and cooperation with subcontractors. Registration and cancellation criteria and procedures are also reviewed to determine adequacy.
- Supplier management practices
To enhance transparency and fairness in our supplier selection and operational processes, TYM provides clear business practice standards to internal purchasing teams and thereby establishes an order of fair trade for external suppliers. All purchasing managers at TYM pledge to conduct fair businesses by signing a pledge of integrity every year.
For small-to-medium size businesses that have difficulty managing funds due to the recession of the domestic economy, TYM provides support by offering secured loans of credit sales and corporate purchase loans.
Secured loans of credit sales
Alongside the implementation of an electronic payment system on January 1, 2007, a system was created for suppliers to receive loans though accounts receivable at low interest rates as collateral for early delivery. This enables us to see the effect of reducing financial costs.
Corporate purchase loans
Instead of paying for goods through invoicing, the supplier can receive a loan and pay in cash, so goods can be collected in advance as required.
Supplier management processes
We work closely with our suppliers to ensure that the standards of quality established during our manufacturing process are followed and maintained year-round.
TYM's quality policy is explained to suppliers two times a year, covering pre-inspection of potential quality problems and training on how to prevent them.
TYM undertakes efforts to maintain and manage set quality standards, raising suppliers' abilities to raise awareness of quality and cultivate the ability to autonomously manage quality. Suppliers that fail to observe quality standards during inspections are notified of non-conformance and are required to improve processes and submit specimens.
TYM is taking initiative to facilitate incremental improvements in evaluating suppliers based on practical work scenarios. To manage process and workflows, work standards are prepared, guidance is offered and inspections are conducted biannually. Once in the first half of the year, and once more during the second half of the year. In 2020, technical guidance was offered to eight TYM suppliers. TYM is also making efforts to comply with environmental laws as per business partner regulations and secure a safe working environment for workers.
Related sustainability commitments
Explore TYM’s current status and objectives for sustainable development, including details on internal management processes that address environment preservation, social initiatives, and ethical governance.