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.
We follow laws and regulations related to procurement activities and we procure materials and services on appropriate quality, cost and delivery time.
We fully realize the value of developing trusting relationships with our valued suppliers.
Regardless of whether a supplier is a domestic or overseas company, we do our utmost to insure free competition.
We evaluate and select suppliers based upon criteria such as quality, price, lead time, quality of management, technical standards and abilities.
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.
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.
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.
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 |
The basic flow of transactions between our company and a partner is as follows:
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