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POSCO FUTURE M will become a sustainable company that shoulders
responsibilities for the society and the people.
responsibilities for the society and the people.
Mutual-Growth Strategy
Mutual-Growth
Strategy
Strategy
POSCO FUTURE M plans, establishes, and operates 17 mutual growth programs in three areas: fair trade, innovative growth, and cultural diffusion. Our strategy for win-win cooperation with suppliers includes ESG education, on-site diagnosis, and financial/welfare/technical support, and our various competency and ESG support programs contribute to building long-term partnerships with our suppliers.
Mutual
Growth
Program
Growth
Program
Shared growth programs : Open & Fair
With the e-Catalog system, a supplier can promote their product without having to pay a visit to POSCO FUTURE M departments. A department interested in buying a product can conveniently source and supply a new product.
Jump to the e-Catalog page
2-1) Technical data deposit system
A system that protects the technology of partner companies by depositing important technical data into the external foundation, Large and Small Business Cooperation Foundation. Large conglomerates that are supplied with products can ensure stable supply and maintenance service even when the supplier closes business due to bankruptcy.
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·Process
- A task
is performed - A task
is complete - Trilateral
deposit
contract - Payment
of fees - Data
is deposited
- A task
2-2) Technical data request process
To protect the trade secrets of SMEs, the process has been systemized such that all request for technical data must be made in designated format that contains legal information.
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·Technical data request processUsing our e-Procurement system, a request for technical data is issued. After filling out the form, POSCO FUTURE M and the other party signs and seals the form.
3-1) Improved payment between tier 1 and tier 2 suppliers (payment for mutual benefit)
A system that guarantees cash payment on the settlement day, or early payment at a low interest rate for tier 1 and tier 2 suppliers.
3-2) Payment in full cash for SMEs
The full payment made in cash within 10 business days after the delivery of products, or twice a week for improved liquidity of SMEs.
3-3) Advanced payment or interim payment for purchase of high-priced facility or equipment for future investment
When we purchase a high-priced facility or equipment for future investment that takes a long time to produce, we provide advanced or interim payments for high liquidity of SMEs.
A program designed to avoid competing on price and the deterioration of the competitiveness of our partners. It also serves the purpose of improving POSCO FUTURE M’s quality management.
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·Abolished bidding based on price competition, introduced a bidding system that limits the minimum price.
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·Biddings based on competition for the best market price is applied for construction deals.
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·Most essential facilities purchased based on the total cost of ownership (TCO).Suppliers are selected by looking at the purchase price of an asset plus the quality difference, including product lifecycle and efficiency.
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·A bidding system based on price that exceeds the standard price.In case the minimum bid price is in the +5% range compared to the standard price as a result of the bid, the bid is sold without adjusting the base price.
Standards for the four practices of fair trade have been established to prevent unfair practices and strengthen competitiveness of the parties when a contract is signed between POSCO FUTURE M and an SME.
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·Four practices of fair trade
- - Practices for a desirable contract between a large and a small company
- - Practices for designation and operation of a partner company
- - Practices for the operation of an internal deliberation committee on subcontracting
- - Practices for the desirable issuance and preservation of documents
Shared growth programs : Innovation
Improved the benefit sharing to BS+ by launching a mutual cooperation body and revamping the system.
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·Adopted more supplier-friendly measures by revising the type of tasks performed, lowering the threshold and providing more rewards for outstanding performance.
- - Began participating in Win-Win Nuri, a web portal by the Large and Small Business Cooperation Foundation.
- - Sending out promotional materials on PR channels, such as social media pages.
- - In case a partner fails, a minimum of 50% of allocated fund is compensated, and 30% of the intermediate payment is added.
- - Private contract signed for additional orders on top of the original contract (up to 5 years).
- - One-time cash compensation for localization tasks.
SMEs can use patents by POSCO FUTURE M by concluding a non-exclusive license agreement. Educational meetings may be held as needed.
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·Non-exclusive license grants
- - Outline : SMEs can use intellectual properties of POSCO FUTURE M free of charge.
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- Coverage : Patents that can generate profit when sold to other companies excluding patents for important products or production process.
- Check
for demands - Accept
applications - Screening
of patent
transfer - Non-exclusive
license contract
is signed
- Check
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·Customized patents
- - Patent application (registration) training, research on technical patent information, consultation on job creation, and support for cost on joint patent application co-developed with POSCO FUTURE M.
Mutual growth activities where departments within POSCO FUTURE M help partner companies to grow using their capacity, infrastructure and know-how.
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·Coverage
- - Suppliers (including tier 2 suppliers)
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·Areas of support
ESG Human resources, safety, environment, sustainable, corporate ethics Legal Tax/accounting, legal knowledge, labor planning Technology and products Technology development, production cost management, patent management, product quality management Others Investment feasibility analysis, sales strategy, logistics management
A fund created to provide low-interest loans to SMEs that have difficulty in financing. Offers win-win cooperation funds and an interest-free loan program for outstanding partners.
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·Low interest loan fund
- - Lower interest rates compared to other loan by 1-1.5% (up to 300 million won)
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·Interest-free loan program for outstanding partner companies
- - Up to 200 million won
10-1)Training of young refractory lining professionals
Educational programs to train young aspiring refractory lining experts at our vocational centers with professional instructors, and training for people interested in working in the refractory industry.
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·Training employees from companies supplying furnace materials and their subcontractors into refractory lining experts
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·Educating refractory lining technicians for mutual growth
- - How we support trainees after completing the course : Connecting graduates to our suppliers related to refractory lining and refractories. Incentives when screening applicants for a position in a open recruitment for POSCO FUTURE M (graduates pass the document screening).
10-2) POSCO SME Consortium* hosted by POSCO
A program designed to strengthen job capacity of our employees and train vital experts leveraging POSCO’s education facilities, manpower and system. The system is run according to the National Human Resources Development System of the Ministry of Employment and Labor.
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·Target trainees
- - Suppliers of the POSCO Group and employees from their subcontractors (tier 2 to tier 4 suppliers)
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·Areas of training
- - Personality, leadership, work, product quality, safety at work (Offered in classrooms and via an e-learning program)
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·View and apply for a program Learn more
We spur growth in our productivity by revamping the governance, manufacturing and production process of SMEs through our QSS innovation initiative. We also provide consultations for building smart factories, including evaluation on the level of smart technologies and identification of new tasks.
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·1st stage in the industrial innovation campaign
- - Eleven conglomerates including POSCO and Samsung are taking part led by the Ministry of Trade.
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·2nd stage in the industrial innovation campaign
- - Campaign led by the private sector, including KCCI and Large and Small Business Cooperation Foundation.
Main Areas of Support Under POSCO’s QSS Innovation Initiative
Consulting Weekly on-site guide by a QSS consultant
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QSS IBuilding the basis of innovation
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QSS IIOverhaul of work locations
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QSS IIIProcess optimization
Education Level-specific training in classroom and learning trips to develop innovative minds. Other support to spur self development.
- Educational tours for the management to benchmark good practices
- Management-level workshops
- Management-level workshops
- Working-level employee training for competency development I
- Working-level employee training for competency development II
- Working-level employee training for competency development III
Shared growth programs : Community
POSCO FUTURE M is expanding information sharing and communication activities with partner companies through diverse communication programs. We are also encouraging a culture of mutual development in our tier 1 and tier 2 suppliers.
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·Periodic exchange aimed at mutual development (e.g. information sharing meetings, publication of newsletters)
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·Encouragement of mutually beneficial activities for suppliers through the POSCO FUTURE M Supplier Council
We designate suppliers that earn the best rating in the annual SRM evaluation or who have made significant contributions to POSCO FUTURE M as our certified partners, instilling pride and offering incentives.
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·Incentives provided to PHPs
- - PHP certification plaques.
- - Cancellation of deposits (contract implementation, defects, advance and interim payments).
- - Extension of contract period, and priority given when an existing contract is terminated.
- - Selected as a priority supplier in case of emergencies or contingencies.
- - Priority given to BS tasks proposed by employees. Support for shared growth activities.
- - More convenient vehicle access.
POSCO FUTURE M has set up a system that helps to resolve unfair trade practices, such as delayed payment, unfair reduction of payment and interference with company management. The system is expected to help stabilize the management of SMEs and put in place fair trade practices.
Support activities to enhance ESG management capabilities of partners/suppliers
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·Key activities: Providing monthly ESG materials to suppliers, offering ESG on-site inspection programs, providing expert ESG training, and offering customized consulting programs for suppliers
Support for recruiting outstanding personnel for small and medium-sized partner companies that do business with POSCO Group & Youth Employment Support
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·Operation of win-win job programs for large and small companies
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·Operation of win-win skilled worker training programs in refractory work
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·Operation of a specialized recruitment site for POSCO FutureM partner companies
A system that provides purchasing benefits to companies that practice social responsibility, such as social enterprises, companies for the disabled, self-support enterprises, and family-friendly certified companies. Preferential measures include incentives during bidding, relaxed supplier registration requirements, additional points during evaluation, and reductions in contract performance bonds.
Supplier Code
of Conduct
of Conduct
POSCO FUTURE M's suppliers must comply with the Supplier Code of Conduct in standard contracts. The Supplier Code of Conduct stipulates the essential matters that suppliers providing products and services must comply with and requires all suppliers to protect stakeholders and employees by complying with all laws and regulations on the environment, human rights, social contributions, ethics and fair trade, safety and health, and quality management.
Purchase of
Green Products
Green Products
ESG purchase methods have been implemented according to the Sustainable management philosophy. The basic principle is to procure from suppliers with green operation processes. POSCO FUTURE M is leading sustainable purchases in the market.