As globalization progresses and economic activities are intricately linked to each other, we need to take social responsibility for not only our products and services, but also our supply chains. Daifuku’s Group Code of Conduct stipulates our trading policy and regulates the compliance of all our executives and employees. Under the Code, we share the Basic Procurement Policy revised during fiscal 2017 with our suppliers to manage supply chains in a responsible manner along with our CSR procurement standards.
Initiative Materiality and relationship to SDGs
- Promotion of CSR procurement in the supply chains
CSR Action Plan KPIs and targets for 2020
- Supplier visitation rate: 80% (total)
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.
- 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 assess 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.
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
This initiative is promoted mainly by the administrative division under the CFO & CRO and procurement personnel of each business operation. We take measures to share our procurement policies with our suppliers by visiting them based on the results of their self-evaluation of CSR related items.
Through our cross-sectional organization called the Production Compliance Committee, we also provide lectures regarding statutory compliance in the fields of production and procurement for persons engaged in procurement. We also hold sessions to exchange information and share our policies with our suppliers.
Supply Chain Initiatives
Management and production trends presentation
Our management and production trends presentation is held annually, with leaders of our business partners in the areas of manufacturing, processing, installation, servicing, design and software-development being invited. In fiscal 2019, 185 business partners were invited to the event. In addition to the president looking back at the previous year, previewing this fiscal year’s financial results and explaining managerial policies, there were a variety of other sessions including lectures by renowned experts.
Supplier Quality Development (S.Q.D.) Award System
In fiscal 2003, Daifuku launched the Supplier Quality Development (S.Q.D.) Award system. Since then, outstanding goods-related suppliers (production outsourcing and goods purchase), designers, installation contractors etc. have been commended every year. In fiscal 2019, from among a total of 214 companies, we presented the S.Q.D. Award to six companies.
Health and safety seminars for top management
Daifuku holds annual seminars with the aim to eradicate workplace accidents in the whole supply chain. At the seminar held in November 2018, we invited the heads of 156 major suppliers and shared policies and information on safety at Daifuku and suppliers. We reconfirmed the importance of safety and health management and enhancement.
Safety award system
In fiscal 2016, we established our safety award system as a means of commending suppliers who implement model initiatives to prevent occupational accidents and to create pleasant and safe workplaces. After presenting the health and safety management initiatives adopted by our various suppliers, we commended one company each in the installation work, production, and procurement fields.
Supplier visitations KPI
The goal for fiscal 2018 was 40%, and the achieved visitation rate was 12.7%. The reason for the poor result was a delay in establishing a plan. Efforts will be made in advance to establish a plan at the beginning of the next fiscal year, with a goal of 95 visitations out of 150 suppliers.
Daifuku promotes its CSR initiatives throughout the entire supply chain by encouraging an understanding of the need for CSR, such as through CSR surveys (self-assessment check sheets) for suppliers and by on-site monitoring.
Supplier Operations Verification System
We are using a system to confirm the operational status of our suppliers in an emergency as part of a scheme to strengthen our business continuity plan. In the event of an emergency, this system confirms damage status of suppliers and safety of personnel by e-mail. We use this system with the aim of ensuring quick recovery and return to normal operations of the whole supply chain by sharing information quickly and accurately.
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, our Green Procurement Guidelines were updated in line with our Environmental Vision 2020 and featured a list of banned chemical substances designated by the Company. The 6th edition of the Guidelines, which has updates of banned chemical substances, was issued in December 2018.