Basic Procurement Policy

In accordance with our management policy and corporate code of conduct, we conduct business with our partners under the following basic procurement policy:

  • 1. Fairness, Impartiality
  • (1) We will open the door wide, both in Japan and overseas, and provide opportunities for free competition.
  • (2) We will select our business partners through the comprehensive evaluation of quality, technology development capabilities, economy and stable supply, as well as business conditions, etc.
  • (3) We will establish a relationship of mutual trust with all our business partners and endeavor to conduct fair, impartial and transparent transactions.
  • 2. Safety, Quality, Cost, Delivery
  • (1) We will pursue the creation of a safe and healthy working environment.
  • (2) We will pursue the optimization of procurement through the maintenance, improvement and enhancement of Q (quality), C (cost) and D (delivery).
  • 3. CSR Procurement
  • (1) We will conduct CSR activities to fulfill our social responsibility in terms of compliance, human rights, labor, environmental preservation, regional contribution and so on.

  • We have formulated the CSR Procurement Standards and will promote CSR activities with all business partners.

    *CSR Procurement - the activities carried out by an enterprise in the entire supply chain in the procurement of products and materials in cooperation with suppliers through the addition of CSR elements such as compliance, human rights, labor, environmental preservation and regional contribution to existing elements such as safety, quality, performance, price and delivery period.

    CSR Procurement Standards

    • 1. Safety
    • (1) To prevent labor accidents, etc., we will endeavor to secure the safety of employees, etc. by taking appropriate safety measures.
    • (2) We will grasp the state of labor accidents and work-related illness and take appropriate measures for the prevention of recurrence.
    • (3) We will work on the creation of a safe and healthy working environment by placing top priority on ensuring safety and health at work.
    • 2. Quality, Cost, Delivery
    • (1) We will endeavor to maintain, improve and enhance quality, costs and delivery.
    • (2) We will secure appropriate quality and delivery and pursue optimal costs.
    • (3) We will endeavor to establish a production system that can provide stable supply and a crisis management system for incidents such as accidents.
    • 3. Compliance
    • (1) We will faithfully perform work according to laws and regulations, social norms and corporate ethics relating to all countries and regions in Japan and overseas.
    • (2) We will properly manage confidential information and personal information and thoroughly ensure information security.
    • (3) We will not provide benefits or facilities, including the grant and receipt of improper benefits and the demand for returns related to work.
    • (4) We will not have any relationships with antisocial forces, including transactions, by taking a resolute attitude against them, and will conduct fair business.
    • 4. Human Rights, Labor
    • (1) We will understand the cultures and customs of countries and regions and work on the creation of a company where the human rights of all people are respected.
    • (2) We will eliminate child labor, a poor environment, forced labor and working for long hours, and will work on the creation of a positive environment that is suitable for work.
    • (3) We will endeavor to develop human resources with the knowledge, technologies and skills necessary to support business activities in Japan and overseas.
    • 5. Environmental Preservation and Regional Contribution
    • (1) We will promote environmentally friendly procurement. *The Green Procurement Guidelines (formulated in November 2005) shall apply to procurement in Japan.
    • (2) We will conduct energy saving activities such as resource conservation and waste reduction.
    • (3) We will live in harmony with the communities and society where we conduct business activities.
    • (4) We will endeavor to participate actively in social support activities.

    • Procurement Qualification Evaluation

      Procurement is an important task directly linked to financial results. In strict enforcement of compliance, Daifuku has introduced a qualification system for persons engaged in procurement operations so that they obtain the necessary knowledge to conduct their work. The number of qualified employees as of June 31, 2016 is 1,197 (including Group companies).

      Daifuku conducts business together with each supplier based on the basic procurement policy and the green procurement guidelines. We will strive to establish and maintain good relationships based on mutual trust, so that each party can conduct their work securely, while observing related regulations.

      Management and Production Trends Presentation

      Management and Production Trends Presentation

      Daifuku holds the Management and Production Trends Presentation, annually. In May 2016, we invited inviting the leaders of 176 major business partners, ranging from manufacturers and installation, servicing, design, and software-development, and presented an analysis of Daifuku's performance in fiscal 2014, its outlook for fiscal 2015, and safety and environmental efforts, along with the Company's management policy.

      Supplier Quality Development (S.Q.D.) Award System

      Supplier Quality Development (S.Q.D.) Award System

      In fiscal 2003, Daifuku launched the Supplier Quality Development (S.Q.D.) Award system to commend outstanding goods-related suppliers and installation contractors. In fiscal 2016, from among a total of 192 companies, we presented the S.Q.D. Award to three companies.

      Health and Safety Seminar for Suppliers

      Health and Safety Seminar for Suppliers

      As part of our ongoing effort to eradicate occupational accidents throughout the Daifuku Group, we hold our Health and Safety Seminar for Suppliers every year.
      At the seminar held in November 2016, we invited the heads of 144 principal suppliers to share their policies and information on comprehensive health and safety management with Daifuku and its partner companies.

      Safety Award System

      Safety Award System

      In fiscal 2016, we established our Safety Award System as a means of commending suppliers who implement model initiatives to prevent daily workplace accidents and create secure workplaces. After presenting the health and safety management initiatives adopted by our various suppliers, we commended individual companies in recognition of their leading divisions in terms of construction work, production, and procurement.

      Green Procurement

      Green Procurement

      Daifuku believes that the manufacturing of environmentally friendly products is a mission it must achieve as a global company. Under the motto, "We will not buy, use, or sell any hazardous materials," we formulated our "Green Procurement Guidelines" in November 2005.
      In April 2012, we issued the Green Procurement Guidelines, The contents were updated in line with our Environmental Vision 2020 and featured the list of banned chemical substances designated by the Company. The 4th edition of the Guidelines, which has updates of banned chemical substances, was issued in July 2013.