Resiliency Building with Suppliers amid COVID-19
In 2021, the world continues to brace the impact of uncertainties and challenges posed by COVID-19. Meticulous attentions must be paid to the capricious market climate with timely adjustments made to production strategies. In such a volatile environment, suppliers are often faced with supply chain disruption, having difficulties obtaining materials and slammed with cost increase due to price hikes. Therefore, FENC has set in place several responses. The Company purchases antipandemic supplies in advance, including medical latex gloves, rubbing alcohol, face masks and infrared thermometers; pays close attention to market trends to initiate negotiation; updates the inventory policy and edges from bulk purchasing to hand to mouth purchasing in order to prevent material shortages; replaces in-person meetings with virtual ones to reduce clustering.
In terms of supply chain management, FENC responds by identifying potential risks and seeking alternative product sources. For instance, FENC developed its own spinning finish oil with Taiwanese suppliers and partially replaced the oil from Europe and the U.S. by importing from Japan in increasing percentage to reduce costs. FENC also makes visits to its suppliers to monitor supply conditions. In 2021, the Company visited 30 suppliers to enhance strong ties in the partnership.