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Customer Relations and Brand Management

Customer Service and Satisfaction

Customer satisfaction is the fundamental obligation of business operations, and it serves as a potent marketing tool and communication medium. HIWIN has successfully achieved customer satisfaction through surveys, regular interactions, and exceptional pre-sales and after-sales services. This has not only propelled HIWIN’s continuous advancement but has also enhanced the competitiveness of our customers products in the global market.

• Implementation methods

HIWIN provides customers with the highest quality services through excellent products, high-performance services, reasonable ontime delivery rates, and diversified product categories. Additionally, HIWIN assists customers in gaining a comprehensive understanding of the characteristics and specifications of our products. We collaborate with customers in developing end-user products and technologies, respond promptly to customer feedback, and carefully listen to and understand their needs. This approach enhances our R&D capabilities, manufacturing quality, and customer satisfaction.

HIWIN Headquarters annually issues a customer satisfaction survey to key customers, subsidiaries, and distributors. We gather customer feedback from the surveys, note issues, and propose solutions after interdepartmental discussions. We also regularly review the progress and results of the improvement measures.

• Cross-departmental communication

The marketing team at HIWIN collects customer needs, suggestions, and feedback through various communication methods such as the official website, service hotline, business mailbox, and interactions between sales personnels and customers. They provide relevant departments with information through written reports and presentations, proposing new product development or improvements to existing products. Additionally, they hold regular quality management meetings to discuss areas for improvement in manufacturing processes.

The business department and the manufacturing department also have regular meetings through the production and sales coordination meeting. This allows them to promptly address customer delivery requirements and the status of materials preparation on the production lines. The production department facilitates two-way communication and provides real-time information to effectively control the production schedule. This ensures that product lead times are met, customer requirements are satisfied, and the efficiency is enhanced throughout the supply chain.

• Market communication

HIWIN is a global leading brand in motion control and system technology. Our products are sold worldwide under the HIWIN brand. HIWIN consists of several key teams: the Global Marketing Business Group, responsible for product sales and marketing; the Industrial Design Team and Planning Team, focused on corporate identity and branding; and the IP Team, dedicated to ensuring product designs comply with regulations and preventing the sale of prohibited or controversial items.

At HIWIN, we highly value customer feedback and suggestions. To facilitate this, we offer various communication channels for customers to provide their input. Additionally, we regularly visit customers, organize business meetings, and conduct satisfaction surveys to gather information and analyze areas for improvement. A customer’s score of 70 or above is considered satisfactory in the satisfaction survey. If the score is below 70, we deem the customer dissatisfied and follow up with the customer to address the issues. We aim to enhance service satisfaction continuously.

• Management performance

① Outcomes of customer satisfaction surveys

The 2023 Customer Satisfaction Survey covered key customers in Taiwan and overseas, achieving a customer satisfaction rate of 87%. A total of 370 questionnaires were distributed among subsidiaries, distributors, and end customers, with 329 recovered, yielding a recovery rate of 89%.

The survey results for 2023 showed consistent improvement in production lead time, business services, and after-sales services compared to 2022. This indicates that HIWIN has successfully met customers’ needs in terms of delivery management, product education and training, after-sales technical support, and comprehensive product consulting services.

Furthermore, the quality of our products has improved compared to the past three years. Moving forward, we will continue to enhance quality and lead time through process refinement, aiming to provide even greater value and meet customers’expectations.

② Improvement measures

(1) Based on data collected from the customer satisfaction survey, HIWIN will continue to improve in all areas, such as increasing the content on our technical website and providing more immediate and convenient pre-sales services. In response to the continuous introduction of new products, we will strengthen the professional knowledge and service capabilities of employees in our global subsidiaries and distributors through product training, exhibition visiting, and technical seminars. We aim to improve the quality of pre-sales and after-sales services by listening and providing real-time feedback on customer needs.

Note: Pre-sales services, such as establishing a dedicated technical website, enable customers to quickly access various services, including product selection and life calculation, from their own perspective.

(2) We proactively gain insight into our customers’trouble and expectations through presales and after-sales services. By providing solutions and innovative services, we create added value for our customers. Furthermore, we continuously optimize internal processes and improve manufacturing processes, which are implemented in our daily operations. This proactive approach allows us to offer customers greater differentiation and competitiveness, from quality assurance to quality enhancement.

③ Specific actions taken by HIWIN

Product Quality

HIWIN adheres to the PDCA management cycle. Following our business philosophy of customer service and continuous improvement, we strategically manage the entire quality system, encompassing raw material procurement, product design, development, manufacturing, inspection, transportation, storage, pre-sales, mid-sales, and after-sales services. Internal audits are conducted to ensure the active involvement of all employees in achieving our goal of total quality management.

• Establishing a culture of quality

HIWIN implements the Total Quality Management(TQM) model based on ISO 9001. Through continuous improvement, regular supplier assistance, standardization efforts, and quality system audits, we enhance product quality, strengthen personnel training, and promote a safety culture to provide a good working environment. We implement TPM activities to maintain proper equipment operation and make TPS activities the core of the production management system. We comprehensively integrate the efforts stated above, which apply to all business tasks, to improve product quality and customer satisfaction.

HIWIN also assigns material topics as “Quality Improvement Activities” or “Quality Control Circle Activities” to promote them. This helps address quality issues and enhance the customers’ and suppliers’ understanding of the quality system. By utilizing scientific analytics and tools, including the Taguchi Methods, Seven Basic Tools of Quality, and Eight Disciplines of Problem-Solving (8D), we continue improving quality through the PDCA cycle, making the TQM internalized in every employee’s mindset and workflow.

In line with our commitment to continuous improvement, HIWIN encourages all employees to submit improvement proposals to enhance the quality and efficiency of HIWIN. Additionally, we organize the annual QCC achievements presentation contest to actively promote quality and innovation among employees. Chairman & CEO Eddie Chuo personally evaluates the results of these improvement efforts, aiming to shape the quality of MIT and our branding paradigm.

HIWIN actively listens to customer feedback on product quality, striving for continuous improvement. In the annual customer satisfaction survey, feedback regarding product quality and the impact of products and services on health and safety are documented for improvement. We track the progress of improvement and respond to the customers. In 2023, none of HIWIN’s products violated health and safetyrelated issues.

Through the distributor management process, we actively promote ISO 9001 Quality Management System (QMS) certification for distributors. In 2023, the ISO 9001 certification rate among distributors was 24%, with a target to increase to 30% by 2024. The Business and Quality Assurance departments collaborate as teams, conduct onsite visits, and hold occasional quality seminars and training courses for distributors. Through audits and guidance, we aim to enhance distributor service quality, resolve endcustomer issues, and ensure quality consistency.

Customer satisfaction scores for product quality have been consistently improving yearly, and the product quality satisfaction scores in 2023 have met the target. We aim to improve further in 2024 with a target score of 88.

Customer Privacy

• Privacy policy

To safeguard the privacy of our employees, customers, suppliers, contractors, and website visitors, HIWIN has developed a privacy policy that adheres to the Personal Data Protection Act and the Information Security Policy.

To protect personal information, HIWIN employs multiple layers of encryption for its website registration data. Additionally, our website host is equipped with a firewall and anti-virus system. HIWIN has implemented internal procedures for confidential document control (TIPS) to ensure that all information, regardless of its format, necessary for maintaining the confidentiality of the Company’s operational data or documents held by external organizations (such as public agencies, schools, and corporate bodies), is covered by this privacy policy.

• Unless authorized or legally required, HIWIN strictly prohibits the disclosure or use of customer privacy and proprietary customer information in any situation.

• To prevent any leaks of proprietary information resulting from employee behavior, all HIWIN employees are required to sign a “Declaration to Protect Trade Secrets” and a “Non-Disclosure Agreement.” In order to safeguard customer interests and prevent unauthorized disclosure of customer information, HIWIN has implemented stringent measures to protect customer data. We emphasize the importance of safeguarding customer information and proprietary data, and have implemented an access system based on authorized permissions. Additionally, we have engaged an independent auditor to conduct internal audits, further enhancing our control and management of customer privacy and trade secrets.

• HIWIN has established an Information Security Committee, consisting of supervisors from each unit at the managerial level. This committee holds an annual meeting to discuss and establish information security protocols. The Information Department is responsible for developing and enhancing regulations related to network security, the use of Company email, and reporting violations. Additionally, they actively promote the certification of the ISO 27001:2013 information security management system. To enhance employees’understanding of occupational ethics and information security, we regularly organize training sessions and conduct phishing email tests to evaluate their awareness of information security protection.

Note: For information on security policies, please refer to Chapter 3.5,Information Security.

• Training

① We introduced the Taiwan Intellectual Property Management System (TIPS) and established procedures for managing confidential documents. We provide relevant training in IP courses for new employees and the annual TIPS internal auditor training courses. In 2023, 151 participants passed the TIPS internal auditor training course.

② The IP courses for new employees offer examples of relevant infringement cases. We also provide annual training on patent infringement assessment for new R&D personnel.

• Privacy leakage handling process

• Privacy leakages & disciplinary actions