Relationship with Suppliers
A good business partner seeking mutual prosperity
As part of its manufacturing activities, the AISIN Group procures a wide variety of items, including parts and materials, from numerous suppliers around the world. In undertaking these transactions, we will work to increase Group collaboration and establish trusting relationships with our suppliers based on our basic philosophy of seeking growth and prosperity as good business partners.
Global Procurement Policy
Working together with suppliers
- 1. CSR procurement
- Reinforce CSR
- 2. Stable procurement
- Establish a supply chain that is resilient to risks
- 3. Competitiveness
- Produce globally competitive components and materials
Strengthening CSR initiatives
The AISIN Group is promoting CSR procurement activities jointly with suppliers, beginning with primary suppliers and going as far up the supply chain as possible.
With our suppliers, we promote fair procurement activities based on the spirit of openness and fairness. As a specific effort, we conclude a basic transaction agreement with suppliers, which places greater emphasis on CSR-related clauses regarding compliance with antitrust laws and initiatives to prohibit bribery. On top of ensuring fair transactions, we also make joint efforts concerning safety, the environment and quality with primary suppliers and within our entire supply chain by utilizing such means as information sessions for suppliers jointly held by Group companies.
Additionally, the AISIN Group has established a contact point for suppliers to make inquiries and seek advice on matters related to business ethics.
Establishing a supply chain that is resilient to risks
In an effort to ensure swift response to an emergency, Aisin Seiki has created and operates a risk management system that connects data relating to items purchased from suppliers, including components and materials, with geographical and disaster information. This system is operated 24 hours a day, 365 days of the year, and if a major natural disaster strikes we can swiftly ascertain data on suppliers and products in that region and make the required response flexibly and quickly. We are currently deploying this system to Group companies in Japan as well as in North America, China and Oceania. In fiscal 2017, we started examining measures based on this system to ensure continued production and supply operations not just in a major disaster but also when an accident occurs at a supplier.
Our initiative to support BCP development of suppliers has already been completed. We will continue to work with suppliers to reinforce disaster mitigation measures through various opportunities, such as BCP training sessions and workshops for refining BCPs.
Response to conflict minerals
Automakers listed on the U.S. stock exchange, which are our end customers, are required to report to the U.S. Securities and Exchange Commission (SEC) regarding conflict minerals. In fiscal 2017, we once again worked with business partners and industry groups to conduct surveys to confirm the origin and history of minerals used in products, and to ensure the avoidance of use of conflict minerals. We have since provided customers with feedback on our findings, and our customers can use our products with confidence.