With Our Suppliers

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Procurement Policy

We aim to realize globally optimal procurement based on our quality products principle. To this end, we focus on strengthening cooperation with suppliers and promoting our CSR efforts throughout our supply chain system, while at the same time striving to carry out proper purchasing transactions when procuring materials and parts, based on the following guidelines.

Action Guidelines

  • We conduct rational transactions based on fair, transparent, and open competition.
  • We select suppliers based on comprehensive assessment of product quality, technology, prices, deliveries, and efforts to continuously make improvements.
  • We will enhance mutual trust with our suppliers, which are good partners for us, and strive to realize mutual development.
  • Aiming to become a good corporate citizen, we engage in business operations that comply with applicable national and international laws and regulations.
  • Aiming to procure more eco-friendly products, we strive to promote our green supplier system.

Basic Philosophy

It is indispensable to establish healthy partnerships with our suppliers to procure better raw materials and parts in a more timely and stable manner. Through our supply chain system, we work hard together with suppliers, aiming at mutual prosperity and further strengthened mutual trust.

Promoting CSR-Oriented Procurement

We promote the following activities for suppliers and our employees respectively, for the purpose of ensuring fair transactions with suppliers and the establishment of mutually beneficial sound partnership with suppliers.

For suppliers

  • We explain our CSR procurement guidelines on our websites.
  • We actively communicate with our suppliers to explain our corporate policy through corporate policy conferences, etc.
  • We implement our CSR program with suppliers self-checklist and provide feedback on the overall results.
  • We explain our Green Procurement Guidelines on our websites.
  • We visit the premises of suppliers for practical onsite activities, such as 5S kaizen (improvement) and Total Productive Maintenance (TPM), and hold various seminars.

For our employees

  • We hold seminars for our procurement personnel to ensure their compliance with the Subcontract Act.

Voice of Our CSR Procurement Manager

To Continuously Develop along with Our Suppliers

Calling for changing "from a cost center to a profit center," our Procurement Group aims not just to engage in conventional cost management, but to build an organization that can closely connect NGK SPARK PLUG CO., LTD. with suppliers through purchasing and make proposals and value propositions. CSR is one important element of value that a company can offer. Therefore, we produced CSR Procurement Guidelines, and made overall assessment of suppliers' trend through a suppliers’ self-checklist, and provided feedback on the results. We aim to pave the way to continuous social progress through promoting CSR and mutual development together with our suppliers.

Group Manager Procurement Group Maeda

Sharing Corporate Policy

We hold a corporate policy conference with our main suppliers, offering them an opportunity to deepen their understanding of the present situation of our company and our goals. At the conference held in May 2015, we introduced our business results, the company’s basic policy and the policies of each department, which are based on the basic policy, procurement policy and initiatives, and requested suppliers to enhance quality, reduce costs, and promote CSR initiatives.

Corporate Policy at Supplier Conference

Promoting Follow-Up Activities for Regular Supplier Assessments

Once a year, we conduct regular assessments of targeted suppliers and inform them of the results. We visit suppliers where follow-up is particularly required to consult about difficulties, carry out onsite confirmation, consider together what to improve so as to overcome weaknesses and implement improvement activities. We will continue to further deepen our relationships of trust with suppliers not only through day-to-day purchasing transactions, but also through follow-up and support activities.

Voice of Our Supplier Improvement Promotion Organizer

Improvement through Communication

Our hope is that follow-up activities for suppliers translate into continuous improvement of suppliers.
Therefore, rather than unilaterally requesting improvements, we try to listen to suppliers’ opinions to link together improvements that are satisfactory to both of us.

Procurement Div.
Nakata

Implementing Activities to Pull out Potential Capabilities (Seminars and Practical Onsite Courses) for Suppliers

NGK SPARK PLUG CO., LTD. holds seminars for suppliers on themes that include process improvement, quality control, industrial safety and health, and the environment, as well as practical onsite courses in which we visit the production sites of suppliers to work for improvements. We implement the activities to help with human resource development at our suppliers, enhancing the capabilities of their companies. Last fiscal year, we held a total of 24 lectures. We aim to work in partnership with our suppliers in the future to enhance their manufacturing capabilities.

Business Continuity Plan (BCP) Initiatives

NGK SPARK PLUG CO., LTD. is working to formulate a BCP with the objective of a rapid resumption and continuation of business in preparation for a disaster or accident cases. We have promoted countermeasures that include multiple purchasing for key products including materials and parts.
A diverse range of materials and parts is required for manufacturing NGK SPARK PLUG CO., LTD.’s products. Therefore, we are trying to secure systems that respond to the BCP through sharing our objectives with each supplier and making efforts across the entire supply chain.

CSR Procurement Guidelines

In order for the NGK SPARK PLUG Group to put CSR into practice, it is necessary that our business partners understand and cooperate with us on a daily basis. Toward that end, in the procurement policy that we established in April 2012, we indicated that we would promote our CSR efforts throughout the supply chain. In May 2013, we established the NGK SPARK PLUG Group CSR Procurement Guidelines and subsequently extended it to our business partners.
The CSR Procurement Guidelines describe the content of our initiatives in seven areas: human rights and labor; occupational health and safety; environment; fair trading; product quality and safety; information security; and contribution to society. We ask our business partners to understand the purpose of these guidelines and to put them into practice.
In the field of the environment, we have established content for overall initiatives such as environmental conservation activities and the effective use of energy resources. With respect to the details of chemical substance management, we have separately established, and request cooperation with, our Green Procurement Guidelines.

Handling of Conflict Minerals

Our Group promotes procurement activities taking full consideration of social problems, such as human rights and environment. Conflict minerals have been mined in the Democratic Republic of the Congo and its surrounding countries, and it is feared that they are a source of financing for armed factions. We see this conflict minerals issue as a serious social problem for procuring resources and raw materials.
We conduct surveys back through the supply chain to find out whether conflict minerals are used or not, and if there is suspicion of use, we make efforts to avoid using them.

Green Procurement Guidelines

These guidelines explain the basic concepts of our green procurement based on our environmental policies. We reviewed the list of related chemical substances in February 2017 and released version 10.01 of the guidelines. We ask our suppliers to study the guidelines and cooperate with our green procurement.

Green Suppliers

We certify suppliers that meet our system and material standards as "green suppliers," and give priority to these in purchasing.
In fiscal 2015, we conducted screenings of suppliers involved in raw materials, components, and packaging materials, resulting in new green supplier certification for 62 companies and continued certification for 98 companies.

Green Purchasing Requirements

In the purchase of office supplies and appliances, we choose an environmentally-friendly product.

  1. Have less environmental impact during use.
  2. Have a significant effect on environmental improvement during use.
  3. Have less environmental impact during the disposal stage after use.
  4. Comply with relevant laws, standards, regulations, etc. in terms of quality and safety.
  5. Preferably be priced the same or lower than similar products (in consideration of longevity).

Version 2 of our "Green Procurement Guidelines (In-house use)"

*Position and job title are as of fiscal year 2015.