Supplier Evaluation

While Test Rite does not manufacture products itself, we do oversee suppliers’ production processes. As such, we ask them to comply with certain CSR standards which go beyond simply meeting the basic legal and regulatory requirements. Clients of our Trading Group include major European and American retail corporations, such as Walmart, most of which adopt a zero-tolerance policy when it comes to major CSR issues. As a result, we also demand that our suppliers abide by specific CSR guidelines, regardless of whether they are fulfilling a domestic or international order.

Supplier Rating and Evaluation System

As a leading global retailer, Walmart is one of Test Rite’s primary customers. A few years ago, Walmart announced the Sustainability Index and requested all suppliers to meet ethical and environmental protection standards. By 2015, Test Rite began to implement a Supplier Rating and Evaluation System, which requires that all current and prospective suppliers to Walmart, as well as other strategic suppliers working with Test Rite, include ethical and security issues in their factory evaluation standards. In 2016, in an effort to advance the implementation of the rating system, Test Rite Trading set the goal of increasing the percentage of suppliers that conduct ratings and evaluations by 20% year on year.

Supplier Code of Conduct

Encouraged by Walmart’s Sustainability Index, we compiled a Supplier Code of Conduct, which has become our general guideline for evaluating suppliers. In 2016, we put in place comprehensive control and management measures based on the Code.

The Supplier Code of Conduct contains our fundamental expectations from our suppliers with regards to social and environmental conditions and is based on universally accepted fundamental principles and customer requirements. We encourage suppliers to establish quality-management systems and obtain quality-management certification, such as the ISO 9001. Suppliers are expected to monitor product quality to meet customers’ requirement and should make continuous improvements to enhance customer satisfaction. All suppliers and their manufacturing facilities are held to these standards:

1. Compliance with the law

All suppliers must comply with the national law, local and industrial regulations and standards.

2. Hiring and employment practices

The employment process must comply with basic labor laws promulgated by local governments and take the customer’s requirements into consideration.

3. Voluntary labor

All labor must be voluntary. Child, forced, bonded, or indentured labor is prohibited. All employees should be given equal opportunities to work and should not be discriminated against or abused due to their race, religion, gender, or health status.

4. Labor hours

Suppliers must provide workers with rest days and must ensure that working hours are consistent with the law and are not excessive.

5.Compensation

Suppliers must compensate all workers with wages, overtime premiums, and benefits that meet or exceed legal standards.

6.Health and safety

Suppliers must provide workers with a safe and healthy working environment and comply with the applicable safety and health laws and regulations. Suppliers must take proactive measures and provide all workers with appropriate personal protective equipment to prevent workplace hazards.

7.Environment

Suppliers should ensure that every manufacturing facility complies with environmental laws, including all laws related to waste disposal, air emissions, discharges, toxic substances and hazardous waste disposal. Suppliers must validate that all input materials and components were obtained from permissible harvests consistent with international treaties and protocols in addition to local laws and regulations.

7.1 Resin pellet transportation

Suppliers must take proactive measures to ensure the responsible material handling and transportation of pellets and resins used in operations. Suppliers must utilize appropriate equipment and procedures to prevent the loss of pre-production pellets during pellet transportation and handling.

7.2 Priority chemicals

Suppliers must ensure that every manufacturing facility takes a proactive approach to reduce, restrict, or eliminate the use of priority chemicals in products manufactured for Test Rite. Suppliers should work to substitute priority chemicals with safer chemicals or non-chemical alternatives. On an annual basis, suppliers will provide Test Rite with a list of all chemicals used in products sold to Test Rite and the Material Safety Data Sheets (MSDS) for those chemicals. Priority chemicals must be disclosed if they are present in products at a level greater than 100 ppm, whether the priority chemicals were intentionally added or not.

8.Conflict minerals

Suppliers should work with their supply chain to ensure that any of the following minerals used in their products are conflict free: tin (cassiterite), tungsten (wolframite), coltan (tantalum), and gold. Conflict minerals are defined as minerals that originate in mines that are controlled by hostile entities at the time of production, such as those from conflict areas in the Democratic Republic of the Congo (DRC).

9.Anti-corruption

Suppliers must not tolerate, permit, or engage in bribery, corruption, or unethical practices whether in dealings with public officials or individuals in the private sector. Supplier management at Test Rite Retail includes two main parts: Contract management at the front end is implemented to select qualified and suitable suppliers, and a business-to-business (B2B) platform is utilized to provide comprehensive services so that both supply and demand ends can effectively communicate and operate.

Since 2012, Test Rite Retail has signed contracts with approximately 900 suppliers. The Quality and Environmental Protection Policies and Supplier Behavior Guidelines included in the contracts are guidelines for supplier CSR and integrity. In the 2015 version of the contract (revised in April 2015), the two guidelines were renamed to “Supplier CSR” and “Supplier Integrity Guidelines”. Both were also amended with more detailed clauses. We require all contracted and new suppliers since 2015 to sign the 2015 version of the contract. Abstracts from the contract include:


As prescribed in the contract, Test Rite Retail is responsible for conducting a thorough and comprehensive review when selecting new suppliers. Areas subject to review include the supplier’s approach to human rights, working hours, working environment safety and cleanliness, and prohibition of the use of child labor. All related articles are clearly stated in the contract, and the contract will be terminated if any party violates social ethics, undermines corporate reputations, or acts against the public interest.


Our Quality Assurance and Quality Control (QA/QC) unit is responsible for the quality of private label products from the development stage through to manufacturing. The unit has to ensure products meet national regulations and proactively make regular factory evaluations in order to fulfill Test Rite’s CSR goals and obligations.

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