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Procurement Guidelines


Based on our basic philosophy that “good electronics begin with good components, and good components begin with good materials,” we at Peregrine will strengthen collaboration with our partners from the viewpoint of ethical-legal compliance, prioritizing quality, delivery due date, environmental conservation, etc.

 

Purchasing Policy

1. Purchasing Standards

Peregrine's buyers and procurement personnel will be respectful to suppliers, and conduct their dealings with suppliers in a fair, just and sincere manner.

Peregrine's buyers will responsibly carry out purchasing activities, practicing good manners and following the dictates of common sense and best practices.

Peregrine's buyers will maintain cordial relationships with suppliers, but have no personal, vested interest with them.

The behavior of Peregrine procurement staff will comply with relevant laws, rules and internal regulations.

2. Dealings with Suppliers

We will evaluate and select suppliers fairly based on such rational standards as quality, price, delivery performance, steady supply, environmental conservation, financial stability and consideration for human rights and labor safety.

We will not accept gifts of money or items of value from suppliers, and not make personal requests of them.

We will not receive preferential treatment or entertainment from suppliers that defies social common sense.

We will not force suppliers to purchase Peregrine products.

If suppliers provide us with information that is specified confidential, we will strictly manage the information and maintain its confidentiality.

We will promote green procurement, always taking environmental protection into account.

We will not acquire unlisted shares of suppliers' stocks, nor will we purchase suppliers’ stocks based on information undisclosed to the public.

In the event accidents or claims arise, we will deal with them promptly and enforce measures to prevent their recurrence.

To report perceived misconduct or oversights on the part of the Peregrine procurement team or a Peregrine supplier, please email us at procurementombudsman@psemi.com. 

 

Our Expectations of Suppliers

As Peregrine operates its businesses globally, not only Peregrine but also its supply chain partners are required to fulfill their social responsibilities. Therefore, we request our suppliers to comply with the following behaviors.

1. Comply with Laws and Social Norms

We request our suppliers to

comply with laws and social norms applicable in the countries or regions where they do business, such as compliance with anti-trust law, commercial law, laws pertaining to subcontracting, foreign exchange law, personal information protection law, copyright law, laws pertaining to labor, legislation pertaining to safety and hygiene, environmental law, etc.;

prohibit the use of child labor or forced labor;

respect human rights;

combat discrimination including gender discrimination, and support the individual dignity of employees;

realize a safe and clean work environment;

and prohibit bribes and other unfair acts.

2. Promote Sound Business Practices

To maintain and build collaborative, trusting relationships that produce consistently reliable supply, we request our suppliers to promote sound and fair business practices. We also ask our suppliers to appropriately disclose their administrative policies and business conditions, including financial results.

3. Maintain Quality Standards and Delivery Performance to Ensure Stable Supply

The consistent delivery of reliable, quality materials is of vital importance with respect to Peregrine’s overall operational and financial results. As such, we expect a supply of materials with superior quality, delivered quickly and per the quoted commitments.

4. Green Procurement

To deliver products that have less negative impact on the environment, we implement initiatives with respect to Green Procurement. Consequently, we seek to deal with suppliers with established and proven management systems and policies that can produce less environmentally impacted products.

5. Provide Value Engineering

The technological innovations and short product lifecycles in the electronic device industry, along with price erosion pressures, continuously require us to develop new products and offer them at reasonable prices in accordance with market demands. As such, we strive to deal with suppliers that can provide new materials or innovative solutions that can reduce our procurement costs through Value Engineering.

6. Provide Information

Peregrine's clients expect quick delivery of both the components and the extensive information associated with the supply. Client requirements pertaining to environmental and conservation laws are becoming more stringent every year. So, it is necessary to obtain the latest information on the technology and products/materials supplied to Peregrine. We seek to deal with suppliers that can provide such information on a timely basis.

7. Reduce Procurement Lead-Time

To respond to varying customer requests rapidly and flexibly, reducing procurement lead-time is one of the most important issues for us. So, we seek to deal with suppliers that can shorten material procurement lead-time by rapidly and flexibly dealing with often-changing requirements.

8. Observe Confidentiality

We strive to provide as much information as possible to complete transactions with our suppliers. Some of the information provided often includes our trade secrets. So, we seek to deal with suppliers that will keep this provided information confidential.

9. Promote the Use of Information Technology

We believe that exchanging information with our suppliers through information technology and networking will be vital for accelerating our businesses and strengthening our relationships with suppliers. So, we seek to deal with suppliers that can prepare and utilize an information technology environment that optimizes the efficiency of transactions and communications.

10. Elimination of Anti-social Groups

We do not conduct transactions with any anti-social groups, on any account.

We strongly request our suppliers to stop trading with any anti-social groups.

 

We request any concerns related to this policy for the expectations of Peregrine's suppliers be forwarded to procurementombudsman@psemi.com