Supply Chain Management

Promotion Subcommittee as a team for responding to important issues. the Quality Assurance Department, the Sustainability Department, and Environmental Product Promotion Department, and is led by a member of the Sustainability Committee.
The Supply Chain Team develops goals and measures related to supply chain management and sustainability procurement, and the Supply Chain Promotion Subcommittee, as a subordinate organization, is responsible for their implementation.

We have declared our compliance with the Responsible Business Alliance (RBA) to meet the demands of the international community, including corporate responsibility for the safety of the working environment, worker dignity and environmental impact throughout our supply chain. Based on the RBA Code of Conduct, we have formulated the “Tokyo Seimitsu Supplier CSR Guidelines” that set out our requirements with regard to procurement policy, human rights and labor, occupational safety and health, the environment, ethics, safety and quality, and information security. We ask that our suppliers understand the purpose of these guidelines and cooperate with us in promoting sustainable procurement activities.

Since fiscal 2016, we have employed the “SCM (Supply Chain Management) Check Sheet” to conduct a survey. A survey was conducted for the top 56 companies in terms of percentage of Sustainability Assessment procurement value with reference to the SAQ (Self-Assessment Questionnaire) in the RBA (Responsible Business Alliance) from fiscal 2022. Responses
were received from 53 companies (response rate: 94.6%). The results of the assessment analysis are provided to suppliers as feedback. For items with low scores, suppliers are requested to take corrective actions and measures for improvement.

We ask our suppliers to use the "Environmental Management Structure Survey Sheet" or "Environmental Management Checklist" for survey and evaluation purposes, and to develop and manage systems to avoid environmental risks in the supply chain. Suppliers that outsource product manufacturing or services are required to participate in a survey conducted by our Company every two years regarding human health and living environments, including air pollution, water pollution, the Offensive Odor Control Act, vibration and noise facilities, and specially controlled wastes.

We conduct training for employees in Procurement Section and Procurement Team to develop human resources who promote responsible procurement. In fiscal 2022, we provided training on topics including the Subcontract Act, Business Partnership Building Declaration, and the invoice system. We plan to provide Subcontract Act related training for all employees.

Every year, Tokyo Seimitsu offers CSR seminars at workshops hosted by suppliers. In order to promote understanding of the importance of fulfilling social responsibilities throughout the supply chain, we explained about the Self-Assessment Questionnaire (SAQ) provided by the Responsible Business Alliance (RBA) in fiscal 2022 and asked for cooperation in surveys in response to the demands of the international community.

We are developing a web-based system for suppliers to share information with suppliers, broadly and without redundancy.
This system will address the ever-growing need for information sharing, including supplier CSR questionnaires, notifications of disasters such as earthquakes and heavy rains, surveys of damage conditions, and communication of various notifications. We will use this system to build a structure for more sustained and active communication with suppliers.

Once a year, the Company conducts commendations for suppliers. We commend outstanding suppliers based on evaluations of five items: quality, cost, delivery time, rate of cooperation, and management. In fiscal 2022, we commended two business partners and presented them with certificates of recognition.