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With Our Suppliers (Procurement)


The Group developed the Group Procurement Policy and is promoting procurement CSR in order to ensure fair procurement transactions in the supply chain and to strengthen partnership with our suppliers.

Procurement Policy

We follow laws and regulations related to procurement activities and we procure materials and services on appropriate quality, cost and delivery time.

Partnership policy

We fully realize the value of developing trusting relationships with our valued suppliers.

Our open-door policy

Regardless of whether a supplier is a domestic or overseas company, we do our utmost to insure free competition.

Selection of suppliers policy

We evaluate and select suppliers based upon criteria such as quality, price, lead time, quality of management, technical standards and abilities.

Our policy for sharing information and maintaining confidentiality

We are willing to offer necessary information to suppliers. At the same time, we realize that supplier's offers supply us with confidential or sensitive information. We always endeavor to maintain and keep such information strictly confidential.

Promoting Procurement CSR ーToward Sustainable Procurementー

About sustainability

Procurement compliance (rules system)

To ensure fair trade and competition, the Group has put in place rules for ensuring procurement compliance, and the employees conduct procurement operations in accordance with those rules. the Group Code of Conduct, which provides actions required for employees, stipulates in the "Procurement" section basic matters in items relating to procurement, such as conduct of proper transactions, severing relations with anti-social forces, and compliance with the Subcontracting Act, etc. Regarding procurement practices, the Group Procurement Rules and procurement-related rules within the Group stipulate specific matters for observance including provisions on corporate social responsibility, such as the environment, human rights, and labor. When we start transactions with new suppliers, we try to prevent transaction risks by concluding a basic contract in advance that includes clauses on the exclusion of antisocial forces, environmental friendliness, and promotion of socially responsible procurement.

System for management of our suppliers

Based on LOGISTEED procurement rules, our group Procurement Department centrally and intensively purchases fuels that are commonly used by us in Japan and procurement associated with large-scale investment projects. On the other hand, each operating company manages the materials used independently by the operating company and the outsources of the logistics operations, and the entire Group efficiently manages the suppliers. Furthermore, the company relies on its business partners for implementation and compliance to ensure safety and information security, and to prevent corruption.

Implementation of procurement compliance education

To ensure fair procurement activities, we provide e-learning for procurement compliance targeting all employees, as well as special e-learning and group trainings on a regular basis for those engaging in procurement in domestic and overseas group companies.

Number of companies implementing education for
those engaging in procurement (FY2022)
Domestic: 21 companies
Overseas: 30 companies

What we ask our valued suppliers to promote

  1. General CSR activities
    • (1) Vigorous promotion of CSR activities, and
    • (2) Contribution to society and community.

  2. CSR Activities for The Environment
    • (1) Management of hazardous chemicals in products,
    • (2) Management of hazardous chemicals used in manufacturing,
    • (3) Establishing and applying an environmental management system,
    • (4) Minimization of environmental pollution (water, soil, air),
    • (5) Obtaining permission for environment/administrative approval,
    • (6) Resource and energy saving by reusing, reducing and recycling (3R),
    • (7) Reduction of greenhouse gas emissions,
    • (8) Waste reduction, and
    • (9) Disclosure of environmental preservation activities.

  3. CSR Activities for Corporate Ethics
    • (1) Prohibition of corruption, bribes, etc.,
    • (2) Prohibition of abuse of a superior bargaining position,
    • (3) Prohibition of offering or accepting inappropriate profit and advantage,
    • (4) Prohibition of impediment to free competition,
    • (5) Provision of accurate information on products and services,
    • (6) Using appropriate export procedures,
    • (7) Disclosure of appropriate company information, and
    • (8) Prompt detection of mistakes, wrongdoings and injustice.

  4. CSR Activities for Production
    • (1) Ensuring product safety, and
    • (2) Establishing and applying a quality assurance system.

  5. CSR Activities for Information Security
    • (1) Defense against threats on the computer network,
    • (2) Prevention of leakage of personal information, and
    • (3) Prevention of leakage of confidential information of customers and third-parties.

  6. CSR Activities for Occupational Health and Safety
    • (1) Applying safety measures for equipment and instruments,
    • (2) Safe activities in the workplace,
    • (3) Hygiene in the workplace,
    • (4) Applying appropriate measures for occupational injuries and illnesses,
    • (5) Emergency responses,
    • (6) Consideration to physically demanding work,
    • (7) Health and safety of facilities, and
    • (8) Employee health management.

  7. CSR Activities for Human Rights and Labor
    • (1) Prohibition of forced labor,
    • (2) Prohibition of inhuman treatment,
    • (3) Prohibition of child labor,
    • (4) Prohibition of discrimination,
    • (5) Paying appropriate wages,
    • (6) Regulating working hours, and
    • (7) Respecting rights to freedom of association.

Transaction Procedure

The basic flow of transactions between our company and a partner is as follows:

The basic flow

For individual transactions, in accordance with internal rules, procurement department or a person appointed in accordance with internal rules will place an order by issuing a purchase order (PO) or an equivalent document with evidence. (Personal arrangements are prohibited as internal rules since no evidence remains.)

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Inquiry about procurement