Supply Chain Management

CAL has implemented sustainable supply chain management since 2014 and later established the Supply Chain Task Force to be in charge of sustainable supply chain management covering aviation supplies, jet fuel, in-flight catering, and service procurement as well as general affairs. In addition to setting the long-term sustainable development goals in accordance with the UN's Sustainable Development Goals (SDGs), CAL has formulated the "Sustainable Supply Chain Management policy statement and " Supplier code of conduct " in accordance with international standards, including the Global Reporting Initiative (GRI), ISO 26000, United Nations Global Compact (UNGC), and International Labour Organization (ILO). The sustainable supply chain management measures include risk review mechanisms, audits, and supplier conferences that facilitate negotiations with suppliers. These measures are reported to the Corporate Sustainability Committee for review every quarter.

CAL Value Chain

Compared to other industries, the aviation industry is fairly unique regarding safety concerns. As of 2020, the CAL Group had established 31 joint ventures extending across business sectors including air transport, ground handling service, tourism, aerospace technology, air transport support, and logistics and warehousing. By integrating strengths from each component, the Group expects to optimize its overall quality of service, competitiveness, and value chain.

CAL Value Chain

Upstream

Aircraft Manufacturing
Aircraft Leasing
Ground Handling Service
Air Transport Support
Logistics and Warehouse
Aerospace Technology

Midstream

Ground Handling Service
  • Taoyuan International Airport Service Co., Ltd.
  • Taiwan Airport Service Co., Ltd.
  • Dynasty Aerotech International Corp.
  • Jardine Aviation Services Ltd.
Air Transport Support
  • Sabre Travel Network Taiwan Ltd.
  • Everest Investment Holdings Ltd.
  • China Pacific Laundry Services Ltd.
  • Delica International Co., Ltd.
  • China Pacific Catering Services Ltd.
  • Kaohsiung Airport Catering Services Ltd.
Logistics and Warehouse
  • Taiwan Air Cargo Terminal Limited
  • Arport Cargo Terminal (Xiamen) Co., Ltd.
  • Arport Cargo Service (Xiamen) Co., Ltd.
  • Global Sky Express (Taiwan) Ltd.
  • Eastern United International Logistics (Holdings) Ltd. Chung Hwa Express Co., Ltd.
Aerospace Technology
  • China Aircraft Services Limited
  • Taikoo (Xiamen) Landing Gear Services Co., Ltd.
  • Taiwan Aircraft Maintenance and Engineering Co., Ltd.
  • HAECO Composite Structures (Jinjiang) Co., Ltd.
  • NORDAM Asia Limited
Investment and Leasing Business Group
  • CAL-Dynasty International, Inc.
  • Dynasty Properties Co., Ltd.
  • CAL Park CO., Ltd.
  • CAL-Asia Investment Inc.
  • Taiwan Airport Service (Samoa) Company, Limited
Airlines
  • Mandarin Airlines Co., Ltd.
  • Tigerair Taiwan Co., Ltd.

Downstream

Tourism and Leisure
  • CAL Hotel Co., Ltd.
  • Dynasty Hotel of Hawaii, Inc.
  • Dynasty Holidays, Inc.
Customer

Sustainable Supply Chain Management

CAL has implemented sustainable supply chain management since 2014 and later established the Supply Chain Task Force to be in charge of sustainable supply chain management covering aviation supplies, jet fuel, in-flight catering, and service procurement as well as general affairs. In addition to setting the long-term sustainable development goals in accordance with the UN's Sustainable Development Goals (SDGs), CAL has formulated the "Sustainable Supply Chain Management Policy Statement" and " Supplier Code of Conduct" in accordance with international standards, including the Global Reporting Initiative (GRI), ISO 26000, United Nations Global Compact (UNGC), and International Labour Organization (ILO). CAL also established risk review mechanisms to perform audits, held the supplier conferences for facilitating negotiations, and reported the results to the Corporate Sustainability Committee for review every quarter.

Risk Assessment of Supply Chain Sustainability

To strictly control supply chain sustainability risk, CAL has conducted a survey for supply chain sustainability risk and formulated our Sustainability Assessment Questionnaire (SAQ) since 2015 based on international initiatives and evaluations such as the GRI Standards, ILO, UNGC, Dow Jones Sustainability Index (DJSI), CDP, and the Universal Declaration of Human Rights. CAL also established a sustainable supply chain management system to improve the accuracy of the results of the SAQ in 2017, the functions of which include specifying the definition of critical suppliers, conducting the Sustainability Assessment Questionnaire (hereinafter SAQ), formulating regulations for review and designing relevant forms, setting different goals for short-term, mid-term, and long-term reviews, and improving the follow-up tracking mechanism. To strengthen the supply chain management, CAL started to identify supplier risks at the beginning of the year, conducted due diligence in the middle of the year, and reviewed the improvements at the end of the year. Supplier training courses were also organized to fully control suppliers with high risks, and relevant reviews were conducted to further reduce supply chain sustainability risks.


Procedure of Identifying Risk of Supply Chain Sustainability


01
Send the Questionnaire
02
Analyze Questionnaire Responses
03
Notify Risk
Results
04
On-site Audit
05
Track and Make improvements