Sustainability is one of the Huawei’s important procurement strategy and process. In order to select a qualified supplier, sustainability is a necessity for Huawei. Thus, 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 Quality First strategy in 2016. This is because 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 maintain workers in important positions, improve production automation, increase workers expertise and manage IT-based management. Huawei puts a lot of effort in strengthening their redline requirements.
Procurement quotas have been used to develop the sustainability 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 the sustainability of their supply chain by developing their collaboration with the customer to improve supply chain transparency. For example, Huawei had 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 employees of the 10 suppliers.
Therefore, mobile technology such as some communication applications is employed to enhance the information that transmitted between the organizations in the supply chain. In April 2016, Huawei and Deutsche Telekom organized a shared seminar that discussed “Creating Value for Business through CSR and Sustainable Development”. Other than that, Huawei also integrates sustainability into supplier lifecycle and improved the collaboration with the suppliers. Huawei had examined 57 potential suppliers based on their performance of sustainability. For the results, 12 suppliers had suspended and lost their opportunity to work with Huawei.