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Supply Chain Management

Supply Chain Management

SocialSupply Chain Management

Policy

The Meiden Group promotes supply chain CSR when procuring materials
The Corporate Code of Conduct and the Meiden Group President’s CSR Policy Statement are based on the Corporate Philosophy. With the Basic Procurement Policy, we ask all of our business partners to conduct business activities in accordance with our activities about all CSR items.

The Meiden Group Basic Procurement Policy
  • Compliance with applicable laws and social norms
  • Fair trade based on free competition
  • Consideration for the environment
  • Building healthy partnerships

Plan and Targets

The Meiden Group promotes enhanced supply chain management based on the basic policy of “Medium-term Management Plan 2020.”
We are working to conduct fair and impartial transactions, and to improve CSR further while strengthening partnerships to help business partners understand the importance of promoting CSR in the supply chain.
Furthermore, we hope to promote legal compliance, environmental conservation, and community contribution activities, etc., with our business partners, with the aim of achieving mutual sustainable development.
We are continuing activities to support the acquisition of EMS certification by our business partners and supporting CSR promotions such as through follow-up education after EMS certification has been acquired and education concerning information security measures.

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Promotion of CSR that Involve the Entire Supply Chain

Organization
Promotion of CSR that Involves the Entire Supply Chain

Promotion of CSR that Involve the Entire Supply Chain

With regard to procurement of materials, we are committed to ensure fair transactions, including compliance with the Antimonopoly Act and anti-corruption, in order to maintain fair, equitable and mutually developable transactions. Based on CSR that is promoted throughout all business activities, the Meiden Group requests that its business partners and their suppliers promote CSR, including such issues as “human rights, labor, health and safety, the environment, fair transactions, and ethics (including prevention of corruption and bribery, etc.).” In order for them to understand the Meiden Group approach to CSR supply chain management, we have prepared the “Meiden Group Supply Chain CSR Promotion Guidebook”*1 and distributed it to approximately 1,600 of our business partners in Japan.
The content is based on the Supply Chain CSR Deployment Guidebook produced by the Japan Electronics and Information Technology Industries Association (JEITA) (published in August 2006).
We request that all new business partners (100%) disseminate it and apply it at the time of the first transaction.

The Meiden Group Supply Chain CSR Promotion Guidebook

The Meiden Group Supply Chain CSR Promotion Guidebook

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Risk Evaluation

Risk Evaluation

Evaluation of Suppliers

We convey the importance of CSR and our philosophy to our business partners, including legal compliance, environmental protection, and community contribution, which are the basic policies of the Procurement Group. In addition to quality, delivery date, price, technological development proficiency, and environmental certification, etc. we evaluate our business partners’ social responsibility for the risks of environment and social issues such as human rights and labor, fair trade principles, social contribution, environmental conservation, and management of chemical substances.
Through this evaluation, we work to gain an understanding of business conditions relating to social issues such as climate change, biodiversity, environmental management, human rights, and working environments, and then to identify suppliers which have a high-risk.
We conduct appropriate, fair, and impartial procedures for all business partners through surveys relating to CSR promotion and environmental conservation activities at the time of the first transaction.
Furthermore, we evaluate suppliers through “our business partners’ evaluation system” and issue a score card each year based on the results.

Survey relating to CSR activities and environmental conservation activities

Survey relating to CSR activities and environmental conservation activities

Materials procurement score card (example)

Materials procurement score card (example)

Response to the Conflict Minerals Issue

Meidensha has devised the Meiden Group Policy on Conflict Minerals Issue, and we added a section entitled “responding to the conflict minerals issue” to the Meiden Group Supply Chain CSR Promotion Guidebook and clearly articulated our stance on the matter in January 2014.

Policy on Conflict Minerals Issue

The Meiden Group promotes prohibition of the use of conflict minerals (tantalum, tin, gold, and tungsten) mined in the Democratic Republic of the Congo and surrounding nations, which are used to fund armed group activities that repeatedly engage in human trafficking, forced labor, child labor abuse, or inhumane acts, etc.
The Meiden Group promotes responsible procurement of minerals in order to fulfill its corporate social responsibility.
We conduct surveys of high-risk minerals as a due diligence measure, using the Conflict Minerals Reporting Template (CMRT) developed by the Responsible Minerals Initiative (RMI).
In fiscal 2019*, we conducted a survey of materials that we had purchased from 400 major suppliers in the previous year and received acceptable responses from 360 companies (90.7%). If the surveys reveal that minerals have been used to support conflicts, we ask our business partners to take corrective action to avoid using the relevant minerals, such as by changing suppliers. Furthermore, if customers identify risky refineries, we ask business partners that use these refineries to re-examine the status of their business dealings.
At present, we have not confirmed any relationships between our business partners and armed groups, and we are conducting measures aimed at identifying refinery operators and ensuring supply chain transparency.
*In fiscal 2019, we collected information on cobalt, and in fiscal 2020, we plan to conduct surveys using the Cobalt Reporting Template (CRT).

Request to business partners

The Meiden Group considers ensuring a transparent supply chain and conducting responsible procurement of materials and parts to be important matters. We request that all of our business partners accept our Policy on Conflict Minerals Issue and cooperate with our initiatives to source conflict-free minerals.

Promotion of Green Procurement

Based on our Basic Environmental Philosophy: “contribute to people, society, and the global environment to make a world a better place to live,” we are proceeding with activities in accordance with the Meiden Group’s Environmental Action Policies. In material procurement, throughout the entire life-cycle to disposal, we try to make environmentally conscious products and reduce disposal, and engage activities in protecting the global environment by energy-saving, resource-saving, and minimizing the use of toxic chemicals, etc.
We view procurement of materials as part of our supply chain CSR activities. We drafted the Green Procurement Guidelines to clarify our policies and request even greater understanding and cooperation from our business partners.
We provide the Green Procurement Guidelines to Japanese business partners and we request all new business partners (100%) to disseminate and apply at the time of the first transaction.
Furthermore, by issuing CSR surveys (including environmental activities surveys), we are able to understand our business partners‘ CSR promotion activities and environmental activities, and conduct risk assessment. They cooperate with our CSR procurement activities including green procurement.

We have recently revised the Green Procurement Guidelines to meet the needs of the times. We engage with a broad range of environmental issues that need to be considered by companies such as promotion of reducing greenhouse gasses and efficient use of water resources and consideration for biodiversity. We work with business partners to promote climate change countermeasures.
We ask our business partners to understand the importance of global environmental conservation activities and to cooperate our activities. Please refer to the Green Procurement Guidelines (revised April 2020) for details.

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Activities to Reduce Environmental Impact in the Supply Chain

Initiatives
Activities to Reduce Environmental Impact in the Supply Chain

Environmental Management Initiatives

When promoting environmentally conscious design, which forms part of our environmental management activities, we operate an environmental BOM* management system that is compliant with the regulations governing chemical substances in products.
The Meiden Group has stipulated two risk levels (prohibition and reduction) for hazardous substances regulated by laws and regulations relating to chemical substances such as the RoHS directive and REACH regulations. Based on the Green procurement guideline, we conduct surveys of chemical substances contained in procured materials and expand environmentally conscious products by promoting the elimination of hazardous substances.
*BOM: Bill of materials

Reducing Environmental Impact by Building Environmental Management Systems for Business Partners

We provide assistance not only for the Meiden Group but also for business partners, to build environmental management systems (EMS) and promote the reduction of environmental impact. We ask our partners to participate in these activities too, and promote the reduction of environmental impact throughout the entire supply chain.
We ask our business partners to create environmental management systems. In particular, we strongly recommend acquiring external system certification such as ISO14001 and Eco-Action 21.

Promoting and Supporting Eco-Action 21 Certification and Registration

In fiscal 2019, for the fifth consecutive year, we held a study group for the Eco-Action 21 environmental management system (greening program) for small and medium-sized enterprises without environmental management systems, which is endorsed by the Ministry of the Environment, in the Meiden Group’s four regions, for the fourth consecutive year, and we promoted and supported certification and registration. As a result, 34 participating business partners received certification, and a ceremony to confer certification and registration certificates was held at each production location. (A total of 124 suppliers have an EMS and hold Eco-Action 21 certification.)
Also, we conducted follow-up education and individual visits for the 90 companies that had received certification up to 2018, and created opportunities for discussing and sharing information with educators. We will continue providing support for our business partners in relation to Eco-Action 21 certification and registration activities, and aim to spread environmental management systems and environmental improvements throughout the entire value chain.

Certification ceremony in the Numazu district

Certification ceremony in the Numazu district

Follow-up education in the Numazu district

Follow-up education in the Numazu district

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Communication with Business Partners

Communication with Business Partners

The Meiden Group is conducting the following activities to build relationships with business partners.

1. Holding Meidensha Partners Meetings

We have held Meidensha Partners Meetings since fiscal 2019 in order to enhance two-way communication with Business Partners and strengthen relationships. The President gives messages to business partners concerning future Meidensha policies, and awards to praise the assistance and contribution towards business activities and production activities. We appreciate them face-to-face, and reward exceptional activities and results. In fiscal 2020, with implementation of thorough measures to prevent the spread of novel coronavirus (COVID-19) infection, the President visited our business partners in person.

President’s message

President’s message

Companies awarded in FY2019

Companies awarded in FY2019

A visit and commendation at a business partner in FY2020

A visit and commendation at a business partner in FY2020

2. Holding Production Plan Explanatory Meetings for Suppliers

Each year, we invite our major business partners to each production site in order to directly share information, inform, exchange opinions, and communicate with our business partners.

  • Explanation of the Meiden Group’s procurement policy (purchase record and plan)
  • The record and plan of the business status of Meidensha and each business unit
  • Announcement of examples of notable improvement and sharing information to increase technical ability from business partners
  • Explanation of the Meiden Group’s environmental policy and green procurement policy, and request for cooperation from business partners

3. Holding Various Seminars

We hold various seminars at business partners’ manufacturing plants concerning subjects such as reforming processes and information security in order to increase the capabilities of our suppliers. In fiscal 2019, we visited high-risk business partners and conducted on-site checks and instruction to ensure that appropriate steps are being taken to prevent information leaks, based on the results of a survey of information security measures. Also, with the assistance of the Shizuoka Industrial Foundation, we held an event to showcase instances of improvement through IoT, wherein business partners showcased the results of their successful improvements and shared information.

IoT seminar

IoT seminar

Information security instruction

Information security instruction

4. Seeking Procured Items on the Website

The Meidensha website has introduced “instructions for initial transactions” and “transaction application form” on material procurement, and we collect information on a broad range of business partners.

5. Using the Supplier Portal (web)

We are using the supplier portal (web) to increase the efficiency of estimates, ordering, ATP and delivery tasks, and promote paperless operations through electronic information. We are conducting various investigations including the conflict minerals investigation, which takes the form of a survey, and confirmation of BCP implementation and damage incurred from earthquakes and typhoons, etc.

6. Establishment of the Public Whistleblower System

Meidensha has established the Public Whistleblower System: contact person is an outside lawyer (Law Office Hironaka), for the officers and employees of our business partners, in order to promote appropriate dealings. Please use the system to make a report or for a consultation if you discover that Meidensha employees have committed breaches of the law or inappropriate acts in relation to our dealings.
Please refer to “Public Whistleblower System” on the “Procurement Headquarters” page of our website for details regarding management of information, protection of consulters and reporters, and responses to consultations and reports, etc.

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Enhancing Group Procurement Systems (education of procurement managers)

Enhancing Group Procurement Systems (education of procurement managers)

Thoroughness of Absolute Compliance and Prohibited Matters of the Procurement Headquarters

In order for the member of Procurement Headquarters to behave in a proper manner, we have devised “absolute compliance matters” and “absolute prohibitions” as a code of conduct for the Procurement Headquarters so that all employees reflect on their own actions and do not commit any inappropriate conduct.
We read the following items at every morning meeting and ensure that all employees know them as a daily education; legal compliance, prevention of corruption, respect for human rights, labor practices, consideration for the environment, quality, safety, and information security, etc.

Enhancing Group Procurement Systems

The whole Meiden Group is working to enhance procurement systems. We conduct regular Meiden Group Procurement Meetings, and promote initiatives to improve our procurement base and sharing of information.

Initiatives to Improve Our Procurement Base

  • Be thorough with legal compliance
  • Be thorough with CSR procurement
  • Enhance risk management (BCP and internal control)
  • Enhance professional development
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