Supply Chain Management

Lotus is committed to building a responsible, transparent, and ethical supply chain. All suppliers are required to sign the “Standard Purchase Order Terms and Conditions” and “Supplier Commitment” to ensure quality and alignment with our sustainability standards.

Our supply chain management covers key aspects such as human rights, environmental protection, ethics, health, and safety. We engage with our suppliers to promote these standards and encourage ongoing improvements across the supply chain.

Download ”Supplier Commitment Letter”

Download ”Standard Purchase Order Terms & Conditions”

Lotus Supplier Portal

We have launched a Supplier Portal to streamline interactions with suppliers and support alignment with our standards and goals.

Lotus Supplier Portal

Supply Chain Management Methods

Supplier qualification review

Daily management and training

Regular assessment And inspection

Supplier qualification review

All new suppliers are required to undergo a comprehensive screening process to ensure compliance with cGMP standards for pharmaceuticals and alignment with our sustainability values. Suppliers are evaluated across six key dimensions and classified into three levels: A, B, and C.

Evaluation Aspects for New Lotus Suppliers

SUPPLY CHAIN MANAGEMENT

Supply

Quality

Service

Cost

Innovation

ESG

Supply

Lead time
Order confirmation
Delivery performance

Quality

Complaints
Major deviation
OOS, OOT, stability issue
Audit observation
Warning letter issue

Service

Filing
Response time
Pipeline

Cost

Pricing
Cost optimization initiatives

Innovation

Technical capabilities
Problem solving
Management commitment
Pipeline

ESG

EHS / Labor / Human Rights Compliance
Greenhouse Gas (GHG) Reduction Achievement / Green Energy Consumption
Hazardous Substance Management

Supplier Classification

Strategic Suppliers

Having important cooperative relationships is crucial for achieving the long-term success of Lotus.
These are suppliers that are difficult to replace.

Valuable Suppliers

Require regular management to reduce risk and increase value-based cooperation.
These are suppliers with high replacement costs.

Potential Valuable Suppliers

These are suppliers with low replacement costs.
Typically these are not critical product suppliers.

Other suppliers (no grading)
Blacklisted vendors - underperforming suppliers

Supplier Communication

Lotus recognizes that achieving sustainability goals requires collaboration across the value chain. To strengthen these partnerships, we host regular supplier conferences, inviting suppliers to work together on greenhouse gas inventory, carbon reduction, and broader ESG priorities. Through these joint efforts, we aim to build a resilient and sustainable value chain.

download “Supplier Conference”