Hyundai Polytech selects partners through a systematic 5-stage procedure. After discovering companies and analyzing their competitiveness, product development capabilities, and equipment holding capabilities, the process proceeds through registration request for selection qualification review, selection qualification review, selection report, registration and follow-up management. The total score is 100 points, with specific items composed of 30 for management, 20 for certification management, 40 for performance, and 10 for cooperation, and is classified as Excellent (A grade) - Good (B grade) - Fair (C grade) - Insufficient (D grade) based on total score. Partners who receive insufficient evaluation are restricted from new quotations through re-evaluation.
Financial Evaluation
Management Evaluation
Certification Acquisition Management
Follow-up Management Evaluation
Quality
Cost Reduction
Delivery Management
Production Capability
Cooperation Level
Problem Improvement
| Evaluation Score | Below 60 Points | 60 ~ 74 Points | 75 ~ 84 Points | 85 Points and Above |
|---|---|---|---|---|
| Evaluation Grade | Insufficient (D Grade) | Fair (C Grade) | Good (B Grade) | Excellent (A Grade) |
| Management Method | Re-evaluation → New Quotation Restriction | - Product Production Capability Possession - Partial Defects Present but Resolvable in Short Term |
- Product Production Capability Possession - Management/Development/Technology/Quality Basic Management Capability Secured |
- Stable Management Foundation Secured - Sound Financial Structure - Cost Competitiveness Possession - Product Development Capability Possession |
Hyundai Polytech is improving quality through strict partner evaluation. We conduct annual evaluation once per supplier, but we evaluate partners with OEM quality issues and chronic quality problems without frequency restrictions.
It is conducted for 10 months from February to November annually, and evaluation is conducted through quarterly planning and performance management. Annual evaluation results are reflected in future purchasing policies, and for the 1 company selected as BEST for each supplier, we extend the regular evaluation frequency from once annually to once every 2 years, and for the 2 companies selected as WORST, we impose sanctions by increasing the regular evaluation period from once annually to twice annually.
Hyundai Polytech manages supply chain risk management in 4 stages in detail, and specifically designates responsible persons and action items according to risk situations.
| Category | Stage 1 | Stage 2 | Stage 3 | Stage 4 |
|---|---|---|---|---|
| Situation (Risk Occurrence) |
1. Delivery delay 1 time/month without prior consultation 2. Quality defect 1 time 3. Requirement non-receipt 1 time 4. Person in charge work delay |
1. Delivery delay 3 times/month or more reflected 2. Same company quality defects 3 times/month or more 3. Same item quality defects consecutive 2 times/month or more 4. Requirement non-receipt and schedule delay 5. Person in charge contact impossible |
1. Delivery schedule continuous non-compliance 2. Quality problems continuous occurrence and improvement (will) 3. Customer shortage crisis 4. Partner operation abnormality signs |
1. Company bankruptcy 2. Customer line stop due to supply interruption 3. Production/supply impossible due to fire, etc. |
| Action Items |
Partner person in charge phone contact and notification 100% full inspection by supplier in case of quality problems |
Notification to partner team leader or higher management Partner manager improvement measures receipt Pre-inspection by partner personnel at delivery 100% inspection by our inspection personnel Purchasing person in charge partner visit/inspection |
Partner CEO meeting (Attendees: Purchasing, Quality, Partner executives) Partner evaluation grade downgrade if necessary Partner executive measures announcement and validity check New product Bidding exclusion or restriction Supply volume adjustment and supplier change review |
Immediate situation notification to customer Alternative company search and transfer Order withdrawal Mold recovery |
| Responsible Person |
Person in Charge |
Purchasing/Quality/Production Team Leader |
Purchasing/Quality Executive |
CEO |
| Remarks |
Improvement measures receipt Loss cost claim Process audit |
Debt ratio increase Measures announcement implementation Process audit (improvement validity check) Supplier dualization review |
Supplier change 4M progress |
Hyundai Polytech has economic and technical support policies as shared growth activities and also has emergency measures (plan) to respond to partner risks due to management difficulties.
Annual support amount limit 50 million won/time
If amount above limit requested (separate decision)
If requested for 2 years or more consecutively (separate decision)
Repayment period: 3 months (interest-free), 6 months (50% bank interest rate),
12 months (bank interest rate)
Annual support limit: 1 time/annually
Actively support when technical, management, personnel support needed
under mutual decision
Include support for business trips and short-term stays
Risk management response when partner bankruptcy due to management difficulties
Mold and technology transfer to same industry based on safety inventory
securement (1 month or more)
Transfer to same industry as principle if safety inventory not secured,
review to nearby (within 50km)
| Category | Unit | 2020 | 2021 | 2022 |
|---|---|---|---|---|
| Number of Partners | Companies | 116 | 123 | 132 |
| Partner Purchase Amount | Billion Won | 584 | 694 | 832 |
56-20 Sinyong-ro, Eumseong-eup,
Eumseong, Chungcheongbuk-do
+82-43-871-1071
sales@hdsr.co.kr
273-31 Wonnamsandan-ro, Wonnam-myeon,
Eumseong, Chungcheongbuk-do
+82-43-871-1071
sales@hdsr.co.kr
450-43 Gomo-ro, Jillye-myeon,
Gimhae, Gyeongsangnam-do
+82-55-320-6900
sales@hdsr.co.kr
211 and 214, Geumgang Pentarium IT Tower,
282 Hagui-ro, Dongan-gu, Anyang-si, Gyeonggi-do
