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Our Procurement Principles and Supplier Expectations

1. Our Procurement Principles

(1) Procurement Vision

Procurement Department of Senju Metal Industry greatly values the importance of good supplier relationships which are based upon mutual respect, fairness, and cooperation.

  • We treat all business relationship in a professionally responsible manner.
  • We maintain close business relations with our suppliers and prevent personal conflicts of interest
  • We are committed to conducting business in accordance with laws, rules, regulations, and the highest standards of business ethics.

(2) Standards of Business Conduct  

  • Supplier selection and evaluation will be made upon the basis of objective criteria including quality, price, delivery, supply stability, environmental sustainability, financial standing, human rights and safety compliance, and IT infrastructure.
  • We do not accept gifts of monetary value from suppliers and we do not ask for personal favors to suppliers
  • We will not accept invitations beyond appropriate business-related event from suppliers
  • We do not force suppliers to purchase Senju products
  • We will maintain proper handling of suppliers’ confidential information
  • We will continually strive to promote “green procurement”.
  • We do not acquire unlisted shares of suppliers and we will not acquire shares upon knowledge of non-public information.
  • If incidents or complaints occur, we will respond in a timely and efficient manner and take necessary actions to prevent recurrence.

2.  Supplier Expectations

As a global company with an extended supply chain, we are committed to ensuring the highest standards of social responsibility, and it is our expectation that our supplier partners will make the same commitment. In order to achieve this, we require our suppliers to comply with the following.  

In the event of any failure to comply, we must be notified immediately and corrective measures must be carried out. Depending upon the nature of non-compliance, we may suspend or terminate business relationship, therefore, it is imperative that suppliers use sound judgment and act in accordance with our social responsibility standards.

(1) Compliance with Laws, Regulations, and Social Standards

We expect suppliers to obey all laws, regulations, and ethical business practices of any country in which they operate their business. 

[1] Must comply fully with all applicable laws, rules, and regulations including anti trust laws, business laws, subcontracting laws, foreign exchange laws, data protection laws, copyright laws, labor unions laws, health & safely laws, and environmental protection laws.
[2] No child labor or enforced labor

[3] No discrimination based on race, color, and gender. Treat each employee with dignity and respect.

[4] A safe and clean working environment

[5] No bribing or any other unjust behavior

(2) Sound Business Management

To establish long-term working relationship with suppliers through trust and mutual respect, we expect suppliers to maintain sound and fair business operations. In addition, we ask our suppliers to disclose appropriate information regarding its business activities including financial situation.

(3) Priority on Quality, Delivery, and Supply Stability

To provide products with highest level of quality to all customers in a timely manner, quality and delivery are prime areas of focus. Thus, we seek suppliers who can meet our quality and delivery requirements and provide reliable supply.

(4) Green Procurement

We are committed to environmental sustainability. We continually strive to reduce the environmental impact of the products, and we seek suppliers with proven management system who can provide eco-friendly materials.

(5) No Procurement from Regions with Social Conflicts

We do not endorse procurement from regions with severe social conflicts. Therefore, we require suppliers to ensure that raw materials are not sourced from regions with severe social conflicts.

(6) VE (Value Engineering) Activities

It is known that in our industry, technology and product life cycle are progressing at a tremendous speed. In addition, price competition is becoming more intense, and it is essential to develop new products at competitive pricing to meet the needs of our customers. We seek suppliers who can provide new materials through VE activities and achieve effective price reduction. 

 (7) Information Sharing

In our industry, it is a major challenge to meet the needs of technology that is advancing faster than ever before. At the same time, environmental awareness is increasing and its legislation is becoming more stringent. In order to meet these expectations and requirements, it is important to continuously gather information on the latest technology, new products, and materials. For this reason, we seek suppliers who are able to provide such valuable information.

(8) Shortening Lead-times 

In our industry today, technology is advancing rapidly and product life cycle is shortening continuously. We are focused on shortening the overall lead-time of procured materials in order to flexibly respond to customers’ changing needs. To achieve this, we expect suppliers to be responsive and flexible when responding to market changes.

(9) Confidentiality

We are willing to share necessary information with suppliers in detail including information that may contain confidential information. We expect suppliers to be able to handle and protect confidential information in a proper manner.   

(10) Promoting IT Infrastructure

Utilizing IT and networking technologies for exchanging information with suppliers will accelerate business activities and are essential to success. For this reason, we seek suppliers who are willing to effectively implement and utilize IT infrastructure.

(11) Information Security

We ensure protective measures against threat to computer and network security to effectively prevent damage or disruption from occurring to our company and business partners. In addition, personal information and confidential information obtained from customers and third-parties are properly controlled and protected. Therefore, we count on suppliers to provide proper management of information security.

(12) Eliminating Anti-Social Forces

We do not engage in business with enterprises associated with society destabilizing powers such as organized crime. Therefore, we require our suppliers to avoid any involvement with companies associated with antisocial forces.

(13) Social Contribution

We are actively engaged in building relationship with communities and to help foster social and economic development. Suppliers are also encouraged to take part in community activities and contribute resources to the development of the communities.