ESPEC Quality is more than a word


Supply Chain Management

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)."
In FY 2022, we continued conducting regular voluntary audits of departments which purchase materials, and enacted the necessary measures for items of concern in order to prevent violations of laws.
We also created new training materials for the Subcontract Proceeds Act. We conducted the necessary training in each department, and also constructed a mechanism for checking the level of understanding. In addition to purchasing staff, this training was also conducted for supervisors and staff in departments that engage with suppliers, and for staff at related companies in Japan. A total of 478 persons completed this training.

Business continuity management

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 also conduct practical activities based on the Disaster Confirmation Standards and Initial Response Methods that ESPEC has formulated. In FY 2022, we set up a new system to quickly identify suppliers operating in the area affected by a natural disaster.

Supplier evaluation

In our supplier evaluations, in addition to QCDESM (Q: Quality, C:Cost, D: Delivery times, E: Environment, S: Services, M:Management), we also evaluate supplier approaches to compliance and BCP (Business Continuity Plans). In FY 2022, a compliance/risk management evaluation was conducted in written form for 185 major suppliers, and visits were made as necessary to their sites in order to reduce risk.

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. We have worked to invigorate skill improvement training and QC Circle activities in order to improve quality strength, and these efforts have produced outstanding results. And We have introduced the ESPEC Excellent Supplier Award System to express gratitude to suppliers from whom we have received tremendous cooperation.

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 FY 2022, we continued our program of providing on-site guidance to suppliers with the aim of expanding green procurement with certified suppliers. As a result, a total of 122 suppliers accounting for 96% of purchased parts were able to satisfy the certification standards.

Responsible Mineral Procurement Policy

In FY2023, we established "Responsible Mineral Procurement Policy" to express our commitment in mineral procurement.
We are committed to responsible mineral procurement in order to avoid the use of conflict minerals (tin, tantalum, tungsten, gold) and minerals considered high risk, such as cobalt, which may be used to finance armed groups involved in civil wars and conflicts resulting in serious human rights abuses.

Responsible Mineral Procurement Policy (For Suppliers: Procurement Activities)

Market Information Briefing Seminar

At ESPEC, we invite our key business partners to our Market Information Briefing Seminar. Through this seminar, we provide the necessary information such as economic trends and order counts for business partners to use during production, which allows us to work toward ensuring stable procurement.

CO2 emissions reduction study workshops for suppliers

In FY 2022, we held two study workshops for companies participating in Mutual Prosperity Meetings, aiming to reduce CO₂ emissions throughout the supply chain. In these workshops, participants reviewed the meaning and purposes of our efforts to reduce CO2 emissions, and learned how the efforts are related to their business and how they can actually reduce their emissions.

Study workshop for suppliers