Relationship with Suppliers
A good business partner seeking mutual prosperity
As part of its manufacturing activities, the AISIN Group procures a wide variety of parts and materials from numerous suppliers around the world. The basic philosophy behind our procurement activities aims to establish trusting relationships with our suppliers so that we can grow and prosper together as good business partners, and to ensure responsible CSR procurement in accordance with our Global Procurement Policy, maintain stable procurement and enhance competitiveness.
Global Procurement Policy
Working together with suppliers
- CSR procurement : Reinforce CSR
- Stable procurement : Establish a supply chain that is resilient to risks
- Competitiveness : Produce globally competitive components and materials
Strengthening CSR initiatives
CSR is the most important element that guides corporate as well as procurement activities.
The AISIN Group distributes its Aisin Group Principles of Corporate Behavior not only to primary suppliers, but as far up the supply chain as possible to promote CSR procurement activities in line with the philosophy that supports these principles.
With our suppliers, we promote fair procurement activities always 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.
We also make joint efforts to augment initiatives concerning safety, the environment and quality with primary suppliers and within our entire supply chain.
Additionally, the AISIN Group has established a contact point for suppliers to make inquiries and seek advice on matters related to the Aisin Group Principles of Corporate Behavior.
Establishing a supply chain that is resilient to risks
In an effort to ensure swift response to an emergency, Aisin Seiki has been working to “visualize” its supply chain. More specifically, the company has created and operates a risk management system that connects data relating to components and materials purchased from suppliers with geographical and disaster information. This system is operated 24 hours a day, 365 days of the year, and if an earthquake or other disaster strikes we can swiftly ascertain data on suppliers and products in the relevant region and make the required response quickly. We have been deploying this system to Group companies in Japan as well as in North America, China and Oceania.
During the 2016 Kumamoto earthquakes, this system enabled us to identify local suppliers in just two hours following the disaster. After four hours, we were able to identify the serial numbers of the components produced by these suppliers and accelerate our recovery efforts, including preparing alternative production locations.
Encouraging suppliers to formulate BCP
Placing top priority on protecting the lives of suppliers’ employees and from a standpoint of preparing ourselves for disasters in ordinary times, Aisin Seiki promotes the implementation of disaster-related measures at suppliers and provides support to their BCP development. This may include adding anti-seismic reinforcement to their buildings, firmly fixing equipment to the ground and securing evacuation routes.
By fiscal 2016, all suppliers have formulated their respective BCPs. In the future, we will shift our focus to disaster mitigation and work with suppliers to facilitate related measures. Efforts will include conducting on-site checks and inspections on the progress in their disaster mitigation measures and hosting 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 2016, 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.
As a key member of the auto parts industry, Aisin Seiki is also cooperating to promote these initiatives at other companies.