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Supplier Relations

Aiming for a Better Relationship with Suppliers

Basic Policy

We build strong partnerships with our suppliers and put importance on mutual growth. In dealing with our suppliers, we comply with relevant laws and regulations. Based on a fair and equitable business relationship and from a global perspective, we procure—from Japan as well as from abroad—necessary materials and services after comprehensively evaluating criteria that include appropriate quality, price, delivery schedule, as well as consideration toward the environment.

Laws and Regulations: Understanding and Compliance

In procuring materials, we are taking various initiatives, including in-house training, in order to thoroughly comply with the "Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors (Subcontract Proceeds Act)."

Since fiscal 2016 we have been focusing on preventing any misconduct and violations from occurring by conducting regular independent audits on not only the usual departments, but also those involved in the outsourcing and consignment of after service work, and taking the necessary measures to address any matters of concern. We also hold training sessions on the Subcontract Proceeds Act not only for the personnel in charge of purchasing materials, but also for supervisors of departments that deal with our suppliers, and we strive to strengthen the system by promoting the participation of the newly appointed administrators of relevant departments in external training courses.

Business Continuity Management Initiatives

In order to minimize the impact on customers in case of unforeseen circumstances such as a natural disaster or the bankruptcy of a supplier, we regularly perform verification activities such as checking the actual metal molds which are part of our assets, and monitoring the business situation of business partners.

We are constantly practicing business continuity management (BCM) in accordance with the Disaster Confirmation Standards and Initial Response Methods that we formulated in fiscal 2016.

22 times we have had to ascertain the status of parts which could have a significant impact on productions sites should a supplier face unforeseen circumstances or parts become out of stock. In all cases, we were able to quickly confirm the status and minimize the impact on the production sites.

ESPEC Mutual Prosperity Meetings

Since 1981, we have been building mutual trust between our suppliers and our company, and, aiming at co-existence and co-prosperity, have held ESPEC Mutual Prosperity Meetings. A total of 36 business partners have so far participated in the meetings. (As of March 2016)

In fiscal 2016, we also worked on becoming a risk-resilient organization and held training sessions on our business continuity plan (BCP) and business continuity management (BCM) for our Group members and clients in order to raise awareness of the importance of risk management. Additionally, continuing on from the previous fiscal year, we have been actively carrying out Quality Control (QC) circle initiatives to make our factory floor and onsite operations even stronger and better, and our hard work is yielding positive and substantial results.

ESPEC Excellent Supplier Award System

We have introduced the ESPEC Excellent Supplier Award System to express gratitude to suppliers from whom we have received tremendous cooperation. In FY2016, we presented one President Award, one Excellence Award, and two Special Awards to suppliers.

Photo: Green procurement Certification ceremonyGreen procurement Certification ceremony

Green Procurement

In our efforts to promote green procurement among our material suppliers, we have formulated the ESPEC Green Procurement Standards as guidelines for evaluating environmental management initiatives, such as reducing the environmental load and complying with environmental laws and regulations. These standards are part of establishing an environmental management system that includes acquiring ISO14001 Certification. In fiscal 2016, we revised the Green Procurement Certification Standards so as to raise the response level required of existing Green Procurement Certified clients, such as stricter compliance with Restriction of Hazardous Substances (RoHS) regulations. As a result, a total of 128 suppliers were able to meet the certification standards, accounting for 96% of our registered parts.

We also continue to support activities for clients looking to earn Green Procurement Certification.