Supplier management


Due to the special year of 2020, Handa Industries has established and improved cooperative relations with major suppliers. Under the premise of promoting the mutual improvement of both parties, Company has reviewed the quality, delivery time and service of suppliers.



Systerm Improvement


in order to stabilize the quality supplier team and establish long-term healthy and mutually beneficial supply and demand relationship, the Company has improved the procurement outsourcing management system according to the actual situation. This system is applicable to the company's long-term supply of fabrics, accessories, components and other supporting services manufacturers, as well as internal procurement personnel. For the personnel and behaviors that do not carry out business in strict accordance with the regulations and manual requirements, the company shall deal with them in accordance with the relevant provisions of the regulations. The purchasing person in charge of the company, manufacturing, finance, management and other personnel and departments shall supervise the purchasing behavior.


Formulating process


In order to make the procurement work effective, reduce the risks faced by the Company, and achieve profit growth, the company formulated the "procurement process" to improve the procurement rights and responsibilities of productive and non-productive materials. At the same time, the "Supply Chain Management Process System Document" was formulated to define suppliers and review them according to the defined categories to effectively control the entire supply chain to mitigate and eliminate risks in business operations.


Strict selection


The company always adheres to the four principles of quality, cost, delivery and service in the selection of suppliers, so as to achieve the purpose of purchasing high-quality products at the lowest cost and enjoying high-quality services and fast delivery.

The company organizes the supplier management team, sales, production and other departments to form an audit team,this team reviews the completeness, accuracy and effectiveness of the documents submitted by suppliers,and ensure that the supplier has the ability to supply, and in accordance with the unified evaluation standards, shop around in principle. Similar materials should be selected based on the principle of at least three suppliers and the principle of survival of the fittest.

The company will sign supply cooperation agreement with those suppliers selected by the assessment,and specifies the responsibilities, rights and interests of both parties in the agreement. During the cooperation period, the supplier management team will replace the supplier certificate once a year, maintain communication and interaction with the supplier, keep abreast of the operation of the other company, and ensure the company's purchasing behavior and the safety of the purchased items.

At the same time, we introduce the purchasing bidding management platform, and suppliers need to register online and submit  relatived certificates and documents, which will be verified and confirmed by platform managers to become our qualified suppliers.The procurement staff publishes the bidding documents and other procurement information online. Qualified suppliers can check the bidding documents, purchase the bidding documents, pay the security deposit, and submit online bidding. We evaluate the bidding online, and finally release the bid-winning announcement. This platform can establish a fair non-corrupt partnership, ensure product quality and delivery time, and increase effective suppliers.

Transparent cooperation: 


all suppliers that establish cooperative relationship with Handa will be required to sign an anti-commercial bribery agreement, which stipulates cooperation criteria and establishes a fair non-corrupt cooperative relationship. For internal procurement personnel, we also require all employees to sign the agreement on honesty and self-discipline to enhance professional ethics and self-discipline awareness. In the procurement process, the company shall strictly comply with the “procurement outsourcing management system”, “iso9001:2008 system” certification requirements and “supply procurement management manual”provisions, and require suppliers to comply with, commercial bribery is strictly prohibited.


Comprehensive assessment


In 2020, the company has conducted a comprehensive assessment and evaluation of suppliers in accordance with relevant systems and procedures. The supplier's credit rating is assessed from the aspects of quality, delivery and service. The company implements different management according to the credit rating of each supplier. The company resolutely eliminates suppliers who fail to pass the assessment.


Strengthen management


set up the supply chain management department to screen, supervise, evaluate and evaluate suppliers by standardizing the business process with partners, so as to enhance the synergy of market competition and the consistency of customer service and win the advantages of marketing. Strengthen the consensus of mutual trust between Handa Industries and external core suppliers, reduce and eliminate the obstacles in business connection, strengthen the cooperation between supply chain personnel, and work in the way of Company ownership to maximize the interests of the entire supply chain.

In 2020, there were no complaints related to bribery or legal sanctions related to commercial bribery.



Incooruptibility and Self-discipline Training Conference

In order to promote the incooruptibility and self-discipline of employees, and promote the healthy development of the company, in line with the principle of combining self-discipline and other disciplines, the company launched a  incooruptibility and self-discipline education and training conference in 2020, invited professionals to give keynote speeches and popularize the law and eliminate blind spots for illegal behaviors.The conference made employees raise their awareness of law-abiding from the ideological and cognition. At the same time, it also helps company avoid the loss of interest in regulatory blind spots.

In the future development, the company will implement, execute and carry forward the core cultural concepts of incooruptibility. self-discipline and self-cultivation as the core cultural concepts of the company's employees, which will lay a solid foundation for the future development of Handa.

In 2020, with the further enhancement of Handa's strength in research and development, production capacity, service and other aspects, The company has always kept good cooperation with HONEYSGLOBALWORKUNDER ARMOURCOLUMBIAUMBROMIZUNOLECOQ SPORTIFYONEXTITLEISTDISNEY Victory Sports, Muji and other important customers. Customer satisfaction rate has always maintained at a high level.


During the year, handa Industries with strong strength and industrial chain advantages, won the trust of many international large companies. In the case of COVID-19, Company has close contact with customers through video and other ways to win business orders. At the same time, the Company and China Textile Federation carry out research and technical cooperation, to jointly develop some cutting-edge projects in the industry, to provide customers with quality products.


During the year, Handa has passed the relevant inspection of social responsibility and quality for customers of such brands as Champion,Sumikin Aeon, World, UNY, Active Brands, Lidl, OVS,Toyotomi  Mizuno and other customers, and no serious problems were found.


In 2020, the average customer satisfaction rate was 91.5%, according to the satisfaction survey issued to customers by Companys.According to the opinions, suggestions and feedback of some customers, the company has made special classification and given feedback and thanks to customers and itself in a responsible attitude.

During the year, the company maintained close communication and exchanges with customers, striving to meet customer requirements, strive to win the respect of customers with quality and service, at the same time, it also paid great attention to the respect of customers and the protection of their information, in order to protect the rights and interests of customers and both sides.

Quality and safety management

Product quality and safety are the basis for the survival and development of Companys. To this end, we have established a sound quality management and tracking control system, from raw materials procurement to finished products out of the warehouse, the entire production process of every activity are standardized control, implementation of strict access standards, do not meet the quality and safety standards of raw materials will not be out of the warehouse, unqualified products will not be out of the warehouse. Meanwhile, we have improved and updated the production process and quality management process to control the people, equipment, materials, methods, environment and other factors that directly affect the quality of products in the production process, so as to ensure the product quality reaches the standard.

In order to unify and standardize the internal quality standards of the Company, according to the national and industrial standards and combined with the actual situation of the Company, each company has formulated strict inspection standards for incoming materials, quality standards for internal control and final inspection standards for products. Garment factories have also improved the quality management system documents, including quality inspection of fabrics and accessories, washing test, cutting inspection, semi-finished and finished products inspection, garment needle inspection and other management systems. Printing and dyeing factories also focus on the establishment of strict inspection and acceptance standards for dyeing AIDS andother raw materials.

Attached: Handa Industries quality management internal standards

1、Incoming materials inspection specifications:

(1) dyes, auxiliaries products into the factory, the requirements of the enclosed certificate or inspection sheet, check the number and the warehouse keeper, buyer open inspection sheet, laboratory testing, and in strict accordance with the GB19601-2004, the Oeko Tex - 100 standard for all testing, testing only can be used in the production of qualified, in order to achieve the requirements of environmental health and safety, for the unqualified raw materials determined to return; After passing the test in the laboratory, the test report of dye, auxiliary agent, etc. shall be sent to the warehouse management personnel before the warehousing procedures can be completed and the products can be put into storage.

(2) inspect and test the color, gram weight, color fastness, shrinkage rate, torsion rate, PH value and other aspects of the incoming garment fabrics and accessories according to the conventional standards and customers' special requirements, and report the inspection and test results to the relevant departments of supply and business; If the unqualified products exceed the standard of the company, the supply department shall return or replace the products, and record the results into the supplier's credit file.

(3) hardware accessories before storage must also be in accordance with the “one look two touch three contrast inspection principle for strict inspection, unqualified products should be timely feedback to the purchasing person in charge, and contact with the supplier processing, the company will evaluate the supplier credit rating according to the quality of goods.

2、Internal quality standards and quality control procedures:

Product production process in strict accordance with ISO9001 quality system standards and implementation, and continuous improvement; Meanwhile, in line with the quality principle of Handa Industries “do not make defective products, do not accept defective products, and do not allow defective products to flow into the next process”, the production process is supervised, analyzed and controlled by applying the corresponding principles and methods of the system, so as to guarantee and improve product quality and product safety.

Each company has a relatively perfect quality assurance system. The quality department is responsible for 100% inspection of fabrics, raw and auxiliary materials, semi-finished products and finished products according to the regular requirements and the requirements specified by customers, to ensure that qualified products leave the factory and unqualified products are resolutely returned, so as to minimize the possibility of defective products leaving the factory.

3Final product inspection specifications:

In order to ensure that the products delivered by the company meet customer requirements to the maximum extent and comply with laws and regulations, the Company focuses on the inspection of product appearance, internal quality indicators and safety when conducting the final inspection of export and domestic products, among which the quality manager of the fabric final product is responsible for the approval of release quality. 100% metal inspection is conducted before the shipment of garments to ensure no broken needles and other metal residues, and sampling inspection is conducted according to batches by the relevant qualification institutions to ensure 100% safety qualification rate of the products.

Quality management related process documents:

Incoming material quality control process
Process quality control process
Procedures for needle inspection, warehousing and shipment of garments

Needle detection ,Warehousing and delivery Process of garments
Control process of nonconforming products
Corrective and preventive measures and continuous improvement

During the year, the company organized employees to conduct regular training and convened summary analysis meetings to form a consensus and atmosphere of quality first and co-management throughout the company. The purpose of Company is to ensure that product quality and product safety were above the standard and continuously improved.

During the reporting period, the company did not report any return or serious consumer complaints based on product safety problems.