To promote our suppliers’ managerial stability, Coway provides financial support and other forms of support, including participation in overseas exhibitions. For the continuous growth of its suppliers, Coway carries out various activities to strengthen its management infrastructure, such as training, technical support and hiring of talented people.
| Activities | Performance in 2017 | |
|---|---|---|
| Fund Support | Operate fund support system of KRW 20 billion for win-win fund and no-interest fund with an upper limit of KRW 3 billion | Support fund : KRW 90.7 billion |
| Payment of Amounts | Pay 100% of amounts due in cash within 10 days upon delivery | Improvement of payment conditions:9.63 days |
| Payment Method | Cash (cashable) payment ratio 100% | Payment method : 100%(Cash) |
| Operation of dispute conciliation | Establish and operate dispute conciliation procedures | Operation of the Ethics Information Center Company regulations and homepage notice |
| Expansion of Sales | Support joint marketing, participation in overseas exhibitions, etc. | Overseas exhibitions : 1 times Purchase consultations : 3 times |
| Activities | Performance in 2017 | |
|---|---|---|
| Training Support | Operate training courses for fostering talent working for suppliers according to their class and competency | Win-win cooperation center education: 937 participants |
| Technical Support and Protection | Provide technical support and operate technical protection programs to secure technical competitiveness of suppliers | Technology Support: 28 cases Technology protection : 13 cases |
| Employment opportunity | Provide employment opportunities through Coway Wi School | Coway Wi School training: 1,347 participants |
| Carbon Partnership | Establish green partnership to support reduction of carbon emission | Power: 146,139Kwh / year ↓ Greenhouse gas: 64.29 tCo2↓ |
| Increased productivity | Increase productivity by supporting innovation of suppliers | Productivity improvement companies : 68 companies, Processes Innovation : 117 cases |
Business Case
At Coway, we provide support on job performance training and global benchmarking for our suppliers.
In 2017, we organized programs including Job Competency Training (937 participants), Supplier CEO Seminar (101 participants), and Smart Factory Training (130 participants). The Smart Factory training, in particular, was received with great enthusiasm by participants by providing insights into strategies and case studies for the Fourth Industrial Revolution, and business innovation benchmarking. We also provided opportunities to learn about business strategies and directions for the future from global leaders by visiting Germany, Austria and other European manufacturing powerhouses.
Since 2011, Coway has operated the “Belief in Goodness Consultative Group” to promote autonomous communication among suppliers and increase their competitiveness through mutual comparison and analysis. The Consultative Group is a representative win-win program in which over 100 of Coway’s Tier 1 and Tier 2 suppliers participate, facilitating communication among themselves. In 2016, Coway established the “Belief in Goodness Consultative Group 2.0” to move beyond its existing role as a communication channel and encourage suppliers’ voluntary innovation.
Comprising more than 100 first- and second-tier suppliers, the Goodness Council shares business know-how and benchmark global leaders to gain competitive advantages in the market while working together to address common problems. For example, they expedited the payment process between first- and second-tier suppliers. Although we make full payment in cash within 10 days, the suppliers failed to do so. Through the Goodness Council meeting, we managed to reduce the average payment period from 100 days to 25.9 days in 2017.
| Category | Activities |
|---|---|
| Capacity development | Trust seminar (Coway executive lecture), 436 participants |
| Manufacturing Competitiveness | Participation in Smart Factory training |
| Global Capability | Participation in overseas exhibitions and benchmarking |
| Tier 2 Suppliers | On-site inspection and improvement activities between tier 1 and 2 suppliers |
| Productivity Innovation | 117 innovation tasks, 10.4 billion savings |
At Coway, we share our mutual growth and innovation strategy and business activities through our ‘Sangsaeng Portal’. In 2017, 45,827 employees of our suppliers accessed the portal and posted 3,290 posts and employees of the company partnered together and wrote 3,290 posts.
