Purchasing Activities with Fairness and Integrity
Our Concept of CSR in Supply Chain
Cooperation from our suppliers is essential for SII to fulfill our social responsibilities. The SII Group Purchasing Policy stipulates "Enhancing our partnerships with suppliers," and we seek to improve the level of CSR together with our suppliers based on fair and honest transactions.
- Pursuing minimum costs.
a) Strengthening compliance.
b) Promoting Green Purchasing.
c) Risk management
- Enhancing the partnership with suppliers.
- Reforming and reinforcing our purchasing function and items listed above.
Supplier Certification System
SII uses the Supplier Certification Criteria to select fair business partners and build the CSR framework based on the purchasing supply chain.
SII Group Supplier Certification Criteria
- Existing framework to conduct fair and honest business, respect human dignity and achieve coexistence with society
- Stable business condition
- Environmental management system
- Management system for quality and risk management
In FY 2019, we revised our Supplier Certification System by establishing items subject to certification screening and various other criteria, and firmly established appropriate response to additional CSR requirements and smooth auditing.
Compliance with the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors (Subcontract Act)
The Subcontract Act has a major significance in purchasing activities in Japan.
SII established the Subcontract Act Section at the head office to reinforce compliance with the Subcontract Act by cooperating with the SII Group's purchasing staff through activities including appropriate guidance to routine work and education.
In FY 2019, we carried out voluntary inspections of 11 purchasing divisions in Japan and confirmed there were no violations of the Subcontract Act and no issues that had to be improved.
Purchasing Risk Management
In our role as a manufacturer that provides products, it is important for us to minimize the risk of a disruption in our supply of parts. Our Purchasing Division clarifies key suppliers and comprehends manufacturing bases to promptly handle emergency situations in case of disasters like earthquakes. In addition, the division is promoting the selection of alternative suppliers or parts to prevent the interruption of parts supplies.
Basic Education Programs for Purchasing Divisions
In order to acquire basic knowledge of purchasing operations, our education programs have been widely provided not only to the employees and managers in purchasing division but also to the employees related to the purchasing practices including engineering, manufacturing, and production control. They are also encouraged to build up fundamental knowledge and awareness for CSR.
In FY 2019, we carried out intranet-based training for managers and personnel working on purchasing operations with the aim of ensuring basic knowledge and raising awareness. We will continue this training program.