Shipping policy

I. Policy Purpose

The purpose of this Logistics Policy is to establish and maintain an efficient, reliable, and transparent logistics management system that ensures the smooth, accurate, and safe movement of goods from suppliers to the final customers. The primary objectives of the policy include:

• Improving Logistics Efficiency: Achieve efficient operations in transportation, warehousing, and distribution through standardized processes and information management.
• Reducing Operational Costs: Optimize the allocation and scheduling of logistics resources to minimize waste in transportation, warehousing, and distribution.
• Ensuring the Safety of Goods: Implement safety management measures and risk warning mechanisms to guarantee the security of goods during transportation and storage.
• Enhancing Customer Satisfaction: Ensure timely deliveries, and promptly address customer requirements and exceptional situations.
• Continuous Improvement: Regularly monitor, evaluate, and gather feedback to continually optimize logistics processes and management mechanisms.

II. Scope of Application

This policy applies to all internal departments and personnel involved in logistics, warehousing, transportation, distribution, and related information management, as well as to third-party logistics service providers. It covers the following areas:

• The procurement, storage, transportation, and distribution of raw materials, semi-finished products, and finished products.
• Management and monitoring of the logistics information system and data.
• Safety and risk management measures.
• Customer service and feedback handling.

III. Responsibilities and Division of Labor

1. Senior Management

   • Responsible for formulating, reviewing, and supervising the implementation of the logistics policy, ensuring that the logistics strategy aligns with the overall company strategy.

2. Logistics Department

   • Responsible for the execution of the logistics policy, managing logistics operations, coordinating processes, and handling exceptions.
   • Regularly report on logistics operational status and provide improvement suggestions.

3. Finance Department

   • Assist the logistics department in developing and controlling the logistics budget.
   • Account for and analyze logistics costs to provide data support for decision-making.

4. IT Department

   • Responsible for the construction, maintenance, and security of the logistics information system, ensuring timely and accurate information transmission.

5. Third-Party Logistics Providers

   • Provide transportation, warehousing, and distribution services as per contractual agreements, ensuring service quality and timeliness.
   • Collaborate with the company for logistics information sharing and feedback.

IV. Logistics Management Process

1. Goods Receiving and Inspection

• Inspection Process: The receiving department shall verify the incoming goods against the order and transportation documents to ensure that the quantity, specifications, and quality meet the requirements.
• Exception Handling: For cases of insufficient quantity, specification discrepancies, or damaged goods, an immediate record must be made, reported, and the corresponding handling process initiated.

2. Warehousing Management

• Warehouse Layout: Establish a scientifically reasonable warehouse layout to enable categorized storage and efficient scheduling of goods.
• Inventory Management: Adopt the First-In-First-Out (FIFO) principle and conduct regular inventory checks to ensure that records match the physical inventory.
• Environmental Control: Implement environmental monitoring measures such as temperature, humidity, and ventilation based on the characteristics of different goods to prevent damage.

3. Transportation and Distribution Management

• Transportation Planning: Choose appropriate transportation methods and routes based on order requirements and customer needs to ensure the safe and timely delivery of goods.
• Distribution Coordination: Collaborate with third-party logistics service providers to develop a distribution plan and monitor the transportation process in real time.
• Emergency Response Plan: Establish an emergency response mechanism for transportation exceptions (such as delays, accidents, or damages) to ensure quick resolution of issues.

4. Information Management

• Information System Construction: Establish a unified logistics information management system to digitalize order processing, goods tracking, transportation scheduling, inventory management, and distribution feedback.
• Data Monitoring: Monitor logistics status in real time, issue early warnings for anomalies, and optimize logistics processes through data analysis.
• Information Security: Ensure the confidentiality and integrity of logistics data to prevent data leaks and tampering.

5. Safety and Risk Management

• Safety Measures: Develop and implement safe operating procedures for warehousing, transportation, and distribution processes to prevent accidents and loss of goods.
• Risk Warning: Establish a logistics risk warning mechanism, regularly assess potential risks, and develop corresponding emergency plans and responsibility assignments.
• Training and Education: Conduct regular safety training to enhance the safety awareness and emergency response capabilities of relevant personnel.

V. Monitoring and Evaluation

1. Regular Audits

   • Periodically audit internal logistics processes and external logistics services to ensure compliance with company standards and relevant laws and regulations.

2. Performance Evaluation

   • Establish a performance evaluation system based on key indicators such as timeliness, cost, service quality, and customer satisfaction, and regularly assess both internal departments and third-party logistics providers.

3. Data Analysis and Feedback

   • Utilize the logistics information system to collect and analyze operational data, summarize evaluation results periodically, and continuously optimize logistics management processes based on feedback.

VI. Continuous Improvement

1. Feedback Collection

   • Establish a feedback mechanism for customers, suppliers, and internal employees to promptly collect issues and suggestions for improvement during logistics operations.

2. Technological Innovation

   • Stay abreast of new technologies and models in the logistics field, such as automation, digitalization, and smart warehousing, and introduce them as appropriate to enhance overall logistics efficiency and safety.

3. Training and Development

   • Regularly organize training sessions to improve logistics-related professional knowledge and skills, ensuring that all personnel are up-to-date with the latest operating standards and emergency response measures.

VII. Compliance and Supplementary Provisions

1. Laws and Regulations

   • The implementation of this policy must comply with national and local laws and regulations regarding logistics, transportation, and warehousing. In case of any conflict, the relevant laws and regulations shall prevail.

2. Policy Interpretation and Revision

   • This policy is interpreted and periodically revised by the company’s logistics department. Any revisions must be approved by senior management and communicated to the relevant departments and partners in a timely manner.

3. Effective Date and Implementation

   • This policy takes effect from the date of publication. All departments and third-party logistics providers must strictly adhere to it and implement it in daily operations. Matters not covered in this policy shall be handled in accordance with the company’s other relevant systems and procedures.