Relationship with Suppliers

In order to deepen win-win relationships with all suppliers, we aim to build a supply chain focused on social responsibility and work with them to achieve sustainable growth.

Basic Stance on Procurement

Suppliers provide the materials, components, and services that are indispensable for us to deliver high-performance and high-quality products to customers, and we consider all of them our valued partners. In order to build win-win relationships with these suppliers, it is essential to have a supply chain that fulfills all social responsibilities including not only quality but the environment, industrial health and safety, and ethics.
We expect every supplier to act voluntarily as a responsible enterprise committed to meeting the needs of the international community. By working together with them, we intend to turn our entire supply chain into a robust value chain and promote valueadded manufacturing.

What We Ask from Suppliers

In procurement, we ask suppliers to cooperate in many different ways.

Conflict Minerals

The Tokyo Seimitsu Group has a policy not to use any materials, parts, or components that contain conflict minerals*. In line with this policy, we ask suppliers to investigate the actual situation to
identify the possible supply chain risks associated with conflict minerals. As for blade products, we have already finished identifying smelting works. Next, we are going to make investigation on machine parts as well.

*Conflict minerals: Specific minerals mined in the Democratic Republic of Congo and surrounding areas and their derivatives. It is pointed that the mining of these minerals causes human rights abuses, such as child labor and forced labor, and provides sources of funding for conflict.

Green Procurement

In procuring components and processed and assembled parts, we preferentially purchase materials with low environmental impact from suppliers involved in environmental activities, in order to ensure that our entire supply chain is environmentallyfriendly.
We disclose our "Green Procurement Standard" to all suppliers wishing to conduct business with us and ask them to comply with it.

Chemical Substances Management

We have held explanation meetings to ask suppliers to strictly manage and report chemical substances contained in the materials we procure. To date, over 400 suppliers have agreed to participate in our effort.
Also, by using the cloud-based chemical substances management database for parts and materials, which will be put into full-scale operation in fiscal 2016, we are going to comply with the RoHS Directive and REACH regulations of the EU in cooperation with our suppliers.

What We Ask from Suppliers in Purchasing Materials with Low Environmental Impact
  1. Compliance with environmental legislation
  2. Management of chemical substances
  3. Exclusion of harmful substances from procured products or reduction in their use
  4. Resource conservation
  5. Energy conservation
  6. Efforts to reduce packaging
  7. Efforts to reduce waste materials and recycle resources

Examination and Improvement of Quality Control and Environmental Management Systems

We examine potential suppliers to see whether they have acquired ISO 9001 and ISO 14001 certifications or have an equivalent internal controls system in place. We conduct business only with those suppliers whose systems are trustworthy or which can guarantee improvements for identified problems under the responsibility of the Production Control Department Manager.
We audit several suppliers every year and instruct them to make improvements as necessary. If any procured material is found to be defective, we work together with the supplier to figure out the corrective action for the defect arising from the supplier's production process and evaluate the appropriateness of preventive measures. By doing so, we seek to enhance the quality and environmental management of the entire supply chain.

Cooperation with Suppliers

Workshops and Other Events for Suppliers

The "ACCRETECH Cooperation Group," an association of suppliers with which we conduct particularly much business, hold New Year's celebration parties and workshops. Through these events, we provide and exchange information on the industry trends, production plans, market and social needs, etc. In the workshop in fiscal 2015, we presented our views on CSR.
We explained the need to be conscious about human rights and the environment, such as elimination of child labor and forced labor, and asked suppliers to cooperate in our effort to fulfill CSR through the entire supply chain.

Establishment of the SCM Promotion Working Group

In fiscal 2015, we established the "SCM* Promotion Working Group" to further strengthen our relationships with suppliers. Through the activities of this promotion working group, we intend to communicate more closely with suppliers, providing information to suppliers, asking them for cooperation, etc. At the same time, we support their CSR activities to fulfill social responsibility through the entire supply chain.

*SCM: Supply Chain Management. The flow of materials from the time when they are processed into parts or semi-finished products to the time when
finished products are produced and delivered to customer is called the
"supply chain." Managing this flow is referred to as supply chain management.

Relationships between Procurement Policies and Suppliers