

Supply Chain Management
Basic approach
As part of its manufacturing activities, AISIN procures a wide variety of parts and materials from numerous suppliers.
To grow along with our suppliers, we strive for fair and open transactions as we build trust relationships based on our basic policy on procurement.
Basic Policy on Procurement
- Mutual advancement through mutual trust
- Fair and open competition
- Promotion of green procurement
- Promotion of localization to be a good corporate citizen
- Compliance with laws and regulations
Green procurement
Helping suppliers raise the bar of
environmental management practices
AISIN, based on the standardized AISIN Group Green
Procurement Guidelines, promotes environmental activities
together with its suppliers.
The Company also provides assistance to its suppliers
in their development of environmental management systems
to help raise the bar of their environmental management
practices. In FY2011, the Company asked 225 suppliers
of the Group to take part in voluntary inspections using a
specially compiled check sheet. The Company also visited
suppliers' places of business and helped promote
improvements on the production floor.
Occupational health and safety
Verifying the safety of equipment
In FY2010, Aisin Seiki began working with the Safety
and Environmental Committee of the AISIN Suppliers
Network* to conduct equipment safety inspections. Under a
structured five-year plan, the Company will inspect a total
of 12,000 pieces of equipment at the manufacturing
plants of 66 suppliers. In FY2011, the second year of
this plan, the Company inspected 3,250 pieces of
equipment.
* AISIN Suppliers Network: Launched as a friendship association for all AISIN
suppliers, the network currently promotes information exchange and mutual
study through lectures and workshops.

Equipment safety inspection
Mutual development led by mutual trust
Helping suppliers resolve business challenges
Aisin Seiki encourages activities that help promptly identify
supplier business challenges, as well as visits suppliers'
places of business to discuss issues and provide advice aimed
at problem resolution.
In FY2011, six full-time staff held a total of 416
interviews with suppliers. As a result, the Company was
able to achieve solid results in terms of improving the quality
of suppliers' products.
Promoting localized procurement
Cultivating new suppliers locally
Aisin Seiki is looking to cultivate new suppliers locally as a
means to expanding its business presence in emerging nations.
In FY2011, the Company evaluated, in terms of quality
and costs, a Chinese manufacturer with which it plans to
begin a business relationship, and the Company conducted
studies in Brazil and Indonesia to identify new supplier
partners.
Compliance with laws and regulations
Education aimed at full compliance with
the Act against Delay in Payment of
Subcontract Proceeds, Etc. to Subcontractors
In order to fully comply with Japan's Act against Delay in
Payment of Subcontract Proceeds, Etc. to Subcontractors,
which forms the basis of accountability to subcontractors,
AISIN regularly holds training lectures for purchasing
managers in its procurement division.
In FY2011, we held training programs in
other divisions, as well as at several Group companies,
to ensure full compliance with this law.

January 2010 training lecture on the Act against Delay in Payment of Subcontract
Proceeds, Etc. to Subcontractors with 150 participants