Supply Chain Management

At DENO, we recognize the critical role that our supplier partners play in delivering exceptional products and services to our customers. We are committed to cultivating long-term, mutually beneficial relationships with each and every supplier across our supply chain.

Our procurement team works closely with suppliers to establish clear communication channels, align on quality standards, and collaborate on continuous improvement initiatives. We view our suppliers as an extension of the DENO family, and strive to be a reliable, trustworthy partner that helps them succeed.

Through this approach, we are able to ensure the highest levels of quality, consistency and responsiveness – key drivers of customer satisfaction and loyalty.
By empowering our supplier network, DENO is better positioned to anticipate market shifts, mitigate risks, and deliver exceptional value to our customers.

Robust Supplier Management Practices

We have implemented a comprehensive supplier management system to ensure the integrity and reliability of our supply chain. This includes a rigorous onboarding process for new raw material suppliers:

Phase 1

Supplier Qualification:
We conduct comprehensive assessments of potential suppliers, evaluating their manufacturing capabilities, quality control systems, delivery performance, and overall business stability.

Phase 1

Phase 2

Technical Testing:
All new suppliers must provide sample materials that undergo rigorous testing. We have invested over a million to acquire the relevant testing equipment to verify that the samples meet our exacting quality standards.

Phase 2

Phase 3

Factory Audit:
Our quality, R&D, and procurement departments will collaborate to conduct on-site supplier factory audits. Based on sample evaluations and the factory audit results, we will select around 3 provisional suppliers.

Phase 3

Phase 4

Ongoing Monitoring:
Even after onboarding, we maintain close collaboration with suppliers, regularly auditing their processes and seeking opportunities for continuous improvement.

Phase 4

Phase 5

Small-scale Procurement and Strict Quality Control:
We will adopt a small-batch procurement approach, while persistently implementing strict overall quality control measures.

Phase 5

Phase 6

Large-scale Procurement and Quality Control:
As order volumes increase, we will continue to execute rigorous quality control. After three rounds of large-scale orders, we will convene a meeting to select 1 primary supplier and 1-2 backup suppliers.

Phase 6

Phase 7

Establishing Strategic Partnership:
We will build strategic cooperation with the primary supplier, jointly developing long-term growth plans to optimize the supply chain collaboration.

Phase 7

Phase 8

Supplier Performance Evaluation and Continuous Improvement:
We regularly assess the overall performance of our suppliers, and continuously optimize the supply chain collaboration based on their performance and market changes, ensuring the sustainability and business growth.

Phase 8

By adhering to these structured procedures, we are able to build a reliable network of supplier partners that consistently deliver the high-quality materials essential for DENO’s premium products. This disciplined approach to supplier management is a key pillar of our operational excellence.