With Our Suppliers

Print this page

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 quality raw materials and parts in a more timely and stable manner. We will carry out activities for mutual growth while competing with one another with a rather tense atmosphere through our supply chain system for enhancement of the 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 implement our CSR program with supplier’s 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.
  • We actively communicate with our suppliers to explain our corporate policy through corporate policy conferences, etc.

*5S denotes five primary phases of workplace organization technique each starting from “S”, including “Seiri (Sort)”, “Seiton (Set in order)”, “Seisou (Shine)”, “Seiketsu (Standardize)”, “Shitsuke (Sustain)”. The workplace where 5S is thoroughly practiced may be regarded as being of high operation management level.

For our employees

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

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 as well as to allow suppliers to develop the guideline.
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.

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 August 2019 and released version 10.06 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 prescribed in “Green Procurement Guidelines” as "green suppliers," and give priority to these in purchasing.
In fiscal 2018, we certified 131 suppliers involved in facilities/jigs and tools, building/incidental facilities, and 263 suppliers involved in raw/subsidiary materials, parts, processing and outsourcing.

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. We held a total of 35 lectures in fiscal 2018. We aim to work with our suppliers in the future to enhance their manufacturing capabilities.

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.

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 2018, we presented our business results, the company’s policy and the policies of each department, which are based on the basic policy, procurement policy and initiatives, and asked for further cooperation to enhance quality, reduce costs, and promote CSR initiatives.

Corporate Policy at Supplier Conference

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 tracing back through the supply chain to find out whether conflict minerals are used or not, and if there is a risk as a result of the use, we make efforts to avoid using them.