Sustainability is one of the Huawei’s important procurement strategy and process.
It is also a necessity for them in order to select a qualified supplier. To be a qualified supplier that able to cooperate with Huawei, they need to obey Huawei’s Supplier Sustainability Agreement and other applicable rules and regulation. In order to continuously improve the suppliers, Huawei uses procurement quotas as ways to enhance their suppliers.
They are also used some applicable measures to manage the risks to develop a more robust supply chain ecosystem. Huawei extensively implements the Quality First strategy in 2016. In the light of sustainability is an essential component of their Broad Quality Principle, Huawei is given more weight in materials and suppliers eligibility, performance evaluations, and appropriation of their decision making. Huawei increases collaboration in sustainability with customers, as well as suppliers and industry organizations.
Furthermore, they used the “Top Four Initiatives” to retain workers in important positions, increase workers expertise, manage IT-based management, and improve production automation. Huawei continuously strengthened their redline requirements and they used procurement quotas for sustainable development among their suppliers. These efforts allowed them to reduce their supply risks, increase the consumer satisfaction, and increase the competition in the supply chain.In 2016, Huawei is able to maintain their supply chain sustainability by developing their collaboration with the customer to increase supply chain transparency. In other words, Huawei shared the result after conducting an on-site inspection on 10 suppliers with 3 consumers. Besides, Huawei conducts a survey with 2 consumers, and this survey is conducted towards the staff of the 10 suppliers. Therefore, mobile technology is used to enhance the information that transmitted between the employers and employees in the supply chain.
In April 2016, Huawei and Deutsche Telekom organized a shared workshop that discussed “Creating Value for Business through CSR and Sustainable Development”.