Sustainable Supply Chain
Telecom Industry Value Chain
Value Chain of Telecom Industry
In the face of the age of 5G and digital convergence and in terms of forming of a new kind of “digital ecosphere,” Chunghwa Telecom adopts the strategy of “extensive alliance” to transform the conventional linear ecological chain into an interdisciplinary digital ecosphere. Actively collaborating with suppliers from upstream to downstream, Chunghwa Telecom upholds its spirit of Always Ahead, offering more quality digital application services and assisting in the digital upgrade and transformation for the industries in Taiwan.
CHT Supply Chain
The CHT supplier partners can be divided into types of property, service, and construction. Now that its scope of operation is mainly of Taiwan, aside from professional network communication equipment to be procured internationally, we substantially put the philosophy of “local procurement” into action to facilitate the development of local economy.
The ratio of local procurement at Chunghwa Telecom was 89% in 2021 because of the larger amount of equipment procured from abroad for the 5G infrastructure, increased by 9% compared to last year.
Chunghwa Telecom is the first telecom service provider that implements “sustainable supply chain management” in Taiwan, stipulating the selection criteria for criticality both in quantity and quality, including procurement quantity (amount), supplier significance (key components), and irreplaceability (e.g. exclusivity, limited qualification, etc.) to determine the criticality of a supplier for the management and auditing of the supplier’s sustainability management in the future.
|Category||Description||Number of Suppliers||Ratio in Total Procurement Amount (%)|
|Tier-1 Suppliers||Enterprise that directly supplies products or services to Chunghwa Telecom with an annual procurement amount ≥ NT$100,000||2,020||99.07|
|Critical Tier-1 Suppliers||Quantitative Criteria||Enterprise that directly supplies products or services to Chunghwa Telecom with an annual procurement amount ≥ NT$50 million||192||84.66|
|Critical Non-Tier-1 Suppliers||Qualitative Criteria||The upstream/downstream supplier for a Critical Tier-1 Supplier that supplies product/service to CHT tracked to determine if the products/services it directly supply are specific, exclusive, limited in qualification, or important equipment binding||27||-|
|Critical Component Suppliers||Qualitative Criteria||The “upstream” supplier to a Critical Supplier that impacts the Critical Supplier’s delivery of products/services to Chunghwa Telecom if it is unable to ship normally||20||-|
|Category||Spend Value (% of total spend)||Number of Suppliers|
Marketing/consulting services/general affairs
Information Services and Equipment