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Social Aspects

Be with Business Partners

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
  1. Mutual advancement through mutual trust
  2. Fair and open competition
  3. Promotion of green procurement
  4. Promotion of localization to be a good corporate citizen
  5. 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

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

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

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