Supply Chain Management

Basic Approach

The Daifuku Group will contribute to the creation of a sustainable society by engaging in sound business practices in accordance with our company creed, management philosophy, and Group Code of Conduct. In procurement, we shall select business partners based on appropriate criteria, comprehensively evaluating quality, technological development capabilities, economic rationality in terms of price and delivery time, as well as the status of environmental and social initiatives. We shall also require all our business partners engaged in the production, installation, and services for our Group’s products to understand and practice the Sustainable Procurement Guidelines that we have established separately, and we shall work together with our stakeholders to build a sustainable supply chain.

Basic Policy

We will ensure that all Group officers and employees are aware of this policy and promote responsible procurement.

Compliance with laws and regulations

We will comply with the laws, regulations, international codes of conduct, and other social rules of the countries and regions where we conduct business. We will stand firmly against antisocial forces or organizations that are a threat to the order and safety of civil society, and we will not have any relationship with them.

Fair and equitable trade

We will open our doors to a wide range of domestic and international companies, regardless of the country in which they are located or their size, to provide opportunities for free competition. We will conduct transactions through fair and equitable procedures, and we will eliminate misconduct such as the offering or receiving of inappropriate benefits.

Building partnerships

We will respect all business partners as equal partners and build long-term relationships of trust based on mutual understanding. We will commit to solving environmental and social issues in the supply chain by strengthening communication and collaboration to achieve mutual sustainable growth.

Pursuing quality and safety

We will pursue quality and safety in the products and services we procure. We will require our business partners to comply with the applicable laws, regulations, and standards of each country and region with respect to quality and safety, and we will provide guidance and support as needed to help them establish systems and management structures to achieve this.

Respecting human rights

We will respect the fundamental human rights of all people involved in the products and services we procure, and we will not be complicit in any human rights violations, including forced or compulsory labor, child labor, discrimination, abuse, and harassment. We will also give due consideration to the working environment and health and safety of our business partners. If it becomes evident that the Group’s procurement activities have caused or contributed to an adverse impact on human rights, we will strive to take appropriate and effective remedial measures.

Responsible sourcing of minerals

We will not procure minerals such as tin, tantalum, tungsten, and gold that are mined in conflict-affected and high-risk areas (CAHRAs) and may involve corrupt activities, support for armed groups, human rights violations, environmental destruction, or other adverse activity. We will also request our business partners to not use conflict minerals and will work to establish a management system for this.

Reducing environmental impact

We will comply with laws, regulations, and agreements related to environmental conservation, and we will give priority to the procurement of products and services with a lower environmental impact. We will provide guidance and support to our business partners as needed, and we will address environmental issues such as climate change and biodiversity conservation throughout our supply chain.

Information security and protection of intellectual property rights

We will establish a management system and appropriately manage and protect confidential and personal information obtained through our business activities. We will also respect the intellectual property rights of third parties and business partners, and we will not violate them.

Formulation of a business continuity plan

We will work to identify and assess risks that will have a significant impact on business continuity and formulate a business continuity plan (BCP) in preparation for large-scale natural disasters and unforeseen circumstances. In order to fulfill our supply responsibilities to customers, we will implement measures in cooperation with our business partners as needed.

Information disclosure and communication

We will disclose the status of our initiatives based on this policy in a timely and appropriate manner and communicate with our stakeholders.

Established: January 31, 2024

Green procurement

The Daifuku Group has formulated the Green Procurement Guidelines, which denote the evaluation standards for any chemical substances that are contained in our products. In recent years, regulations regarding the management of hazardous chemical substances have been tightened, and in order to respond to growing demand, these guidelines were revised in 2023. These guidelines apply to all products (materials, parts, units, accessories, and packaging materials) and services procured by the Daifuku Group. Our policy is to prioritize the procurement of products that contain minimal hazardous substances of concern and products that contain minimal hazardous substances throughout the product’s life cycle. We are working with our business partners to reduce environmental impact throughout our entire supply chain. Furthermore, for our major business partners, we request that they fully understand the Guidelines, and in order to promote the appropriate management of chemical substances, we ask that they submit proof of receipt and written informed consent (submission rate: 98%).

Green Procurement Guidelines (Japanese only) (PDF: 280KB)

Declaration of Partnership Building

The Group will continue its efforts to comply with the contents of the Declaration of Partnership Building in order to create new partnerships by promoting cooperation and coexistence with business partners in the supply chain and other value-creating entities.

Declaration of Partnership Building (Japanese only) (PDF: 353KB)

Action for fair and transparent transactions

In order to build fair and impartial relationships with business partners and conduct transactions in accordance with healthy business practices, we have established internal rules that prohibit officers and employees, in principle, from receiving entertainment, gifts, or other personal benefits or conveniences from business partners.

Request for Your Understanding and Cooperation in Declining Entertainment and Gift Offerings (Japanese only) (PDF: 802KB)

• ※This notice was widely informed to all business partners in April 2021 when the internal regulations were introduced.

Procurement Worker Qualification Course System

The Procurement Worker Qualification Course System, which primarily targets employees involved in procurement-related work, is an e-learning course held several times each year to allow employees to gain a compliance mindset and knowledge of the relevant laws and regulations necessary for ordering work, such as production and procurement, with the aim of engaging in ordering work with integrity and high ethical and moral standards in line with our management philosophy and the Group’s Code of Conduct. Employees obtain qualification by passing a confirmation test after taking the course.

Engagement with suppliers

Management and Safety Policy and Production Trends Presentation

Daifuku hosts the Management and Safety Policy and Production Trends Presentation to which we invite our major suppliers, from manufacturers and trading companies to processing, installation, service, design, and software development. This event is held to report on production trends and safety and health initiatives in each of the Group's business divisions as well as to request cooperation in addressing environmental and social issues throughout the Group’s supply chain. 286 business partners were invited in fiscal 2026.

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

In fiscal 2003, we established the Supplier Evaluation System, and since then we have annually presented the S.Q.D. Award to recognize suppliers who have demonstrated outstanding performance in areas such as goods-related (outsourcing of manufacturing, procurement of goods), design, and construction contracting. In fiscal 2026, we presented the award to 11 of the eligible companies selected from among all our suppliers at the Management and Safety Policy and Production Trends Presentation. In addition, in the same year, we revised the evaluation criteria for the award, changing to a system that continuously evaluates comprehensive efforts, including not only the traditional quality and environmental initiatives, but also responses to social issues and contributions to the company. We support our suppliers in developing their capabilities through initiatives such as sharing best practices from award-winning companies, and promote the creation of sustainable supply chains.

Award category	Recipient suppliers
Bronze Award	Kansai Techno Service Co., Ltd.
	Feeling Engi Co., Ltd.
	Tokai Densetsu Co., Ltd.
	Mikasa Metal Industries Co., Ltd.
	Endo Manufacturing Co., Ltd.
	Kobashi Electric Co., Ltd.
	Daijiku Co., Ltd.
	Mizuho Co., Ltd.
	Fuji Manufacturing Co., Ltd.
	Kamo Steel Co., Ltd.
	Nishikawa Sangyo Co., Ltd.

FY2026 S.Q.D. Award Recipients (in no particular order)

Supplier Operations Verification System

Please enlarge the screen to view

To ensure stable procurement of parts and other supplies in the event of a disaster, we have introduced a Supplier Operation Verification System that enables rapid collection of information on damage to suppliers. In an emergency, this system confirms the status of damage to suppliers and safety of personnel by e-mail, which allows for timely restoration and return to normal business operations for the entire supply chain. Periodic training is conducted with suppliers to bolster operational proficiency, and in the event of an emergency, the system is used to confirm the viability of operations and the delivery date of parts.