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
Aisin Seiki cooperates with suppliers to make continuously better products. To this end, in fiscal 2012 we held 31 supplier meetings, where both new and existing suppliers submitted their technology proposals. Thanks to proposals from a wide range of viewpoints, we were able to cut costs and offer Aisin Seiki technologies for the energy field as well as new fields of business.
Because of natural disasters like the Great East Japan Earthquake and the floods in Thailand, we once again faced the problems of manufacturing stoppages due to severed supply networks for parts and materials. Fortunately, we were able to use the hazard maps we have had since 2007 to quickly obtain information and procure the necessary supplies.
As for one-of-a-kind parts, such as hard-to-procure electronic components, we are diversifying our supply network by finding multiple supplier companies and supply bases. We also strive to build a stable procurement system that allows us to procure as many supplies as are needed to conduct alternate manufacturing.
AISIN, based on the standardized AISIN Group Green Procurement Guidelines, promotes environmental activities together with its suppliers.
To help our suppliers build their own environmental management systems (EMS), we urge them to conduct autonomous inspections using check sheets, and we visit them to assist in building and improving their EMS.
The goal for our three-year plan starting in fiscal 2011 was to have 452 suppliers conduct inspections, and as of fiscal 2012 a total of 366 had completed these.
To help suppliers improve their quality, Aisin Seiki has the "Partner Grievance 10% Initiative". Every month at Aisin Seiki, we meet with suppliers to share information with the goal of eliminating all supplier grievances. This initiative earned Aisin Seiki accolades in fiscal 2012: Toyota Motor Corporation honored us with six awards including ones for outstanding quality control, and automobile manufacturers including Suzuki Motor Corporation and Hino Motors, Ltd., along with customers outside Japan, gave us high marks for quality.
Certificate for outstanding quality control
Since fiscal 2010, Aisin Seiki and the Safety and Environmental Committee of the AISIN Suppliers Network have striven to create a safe workplace through equipment safety inspections. Under our five-year plan, we aim to inspect 13,025 machines at 66 supplier companies. As of fiscal 2012, the third year of the plan, a total of 6,794 machines had been inspected. We are also conducting cross-company efforts to raise standards at all suppliers.
We also conduct education for each employee category to raise awareness of the importance of a safe working environment. In fiscal 2012, education sessions were held for 126 new employees and training was held for 49 managers and supervisors.
Equipment safety inspection
Education session for new employees
Aisin Seiki is always looking to start new relationships with highly competitive suppliers in Japan and other countries. We have been stepping up efforts outside Japan, particularly in emerging market countries, in order to secure suppliers for future business.
In fiscal 2012, an Aisin Seiki team made up of employees from our design, production technology, quality, and procurement departments spent many months in countries like China, India, Brazil, Thailand, and Indonesia finding new suppliers.
Aisin Seiki provides education for all employees doing procurement work so that they can improve their knowledge of laws and realize the importance of abiding by these laws. Such knowledge ensures that we are in compliance with Japanese laws such as the Anti-Monopoly Act and the Subcontract Act. In fiscal 2012, education sessions were attended by 300 employees including those not directly related to procurement.
The Japanese automotive industry is facing tough obstacles: the rise of emerging economy markets, an inflated yen, and the risk of natural disasters, to name just a few. There are numerous measures the industry can take to overcome these obstacles, such as expanding its focus globally, creating innovative technologies, and preparing for the worst when making risk assessments. Our company aims to achieve further growth by strengthening the partnership with Aisin Seiki. And as a global partner of Aisin Seiki, we constantly do whatever we can to contribute to the betterment of our employees and communities so that we can earn the trust of society.
Yohei Hisaka, President & CEO
Hisada Co., Ltd.