Communication with Our Suppliers
Basic policy
Based on our Management Philosophy and the AMADA Group Corporate Code of Conduct, we work with our suppliers on a daily basis to not only ensure compliance with laws and regulations but also to practice procurement that contributes to further improvement of product quality and environmental friendliness.
Partnership Building Declaration
The Company will focus on the following items in order to build new partnerships by promoting cooperation, coexistence, and co-prosperity with business partners in the supply chain and with businesses that seek to create value.
Coexistence and co-prosperity of the entire supply chain and new cooperation across scales and chains
We will work to add value to the supply chain as a whole by encouraging our direct business partners to work with their business partners beyond them (from "Tier N" to "Tier N+1"), and we will aim to build coexistence and co-prosperity with our business partners through collaboration that goes beyond existing business relationships and corporate size. In doing so, from the perspective of business continuity and work style reform in the event of a disaster, etc., we will also promote support such as advice on the introduction of remote working and the formulation of business continuity plans (BCPs) for our business partners.
- (Individual items)
- We will improve the speed of information linkage with the supply chain and promote operational efficiency through visualization.
Compliance with the Promotion Standards
- Pricing methods
- We will not make unreasonable cost reduction requests. In determining the transaction consideration, if the subcontractor requests consultation, we will respond to the request and hold sufficient discussions with the subcontractor to include appropriate benefits for the subcontractor, including consideration of the impact of increased labor costs. In concluding a contract, including the determination of the transaction consideration, the parent company shall clearly indicate and deliver the terms and conditions of the contract in writing or otherwise.
- Cost burden such as type management
- We will promote the disposal of unnecessary molds, fully discuss with subcontractors the management and storage of necessary molds, and promote the return (take-back) of molds and payment of storage costs.
- Terms of payment, such as bills
- We will pay the subcontract price in cash whenever possible. When paying by bill, the subcontractor will not bear the discount fee, etc., and the payment cycle will be within 60 days.
- Intellectual property and know-how
- We do not require the conclusion of unilateral nondisclosure agreements, the disclosure of know-how by taking advantage of our business position, or the free transfer of intellectual property rights.
- Negative effects associated with work-style reform
- To ensure that business partners are also able to respond to changes in work styles, we do not place orders to subcontractors for short delivery times or change specifications at short notice without appropriate cost burdens. In the event of a disaster, etc., we will not impose a one-sided burden on subcontractors in terms of business transactions, and when business resumes, we will give consideration to the continuation of business relationships, as much as possible.
- Takaaki Yamanashi
- Representative Director, President
Click here for the Partnership Building Declaration portal site.
Initiatives
Building relationships with our suppliers
We hold briefings to explain our management policies and other matters to representatives of our suppliers as appropriate. These provide important opportunities for us to engage in dialogue, exchanging opinions with our suppliers. Furthermore, to foster the shared awareness that is important to our partnerships, we have restarted social gatherings, briefings, and other interactions as we strive to build good relationships with our partners.
In addition, in promoting cooperation and coexistence with business partners in the supply chain, we have issued a Partnership Building Declaration and have begun working on priority items.
Conducting quality diagnostics
Once a year, our procurement teams visit suppliers’ plants, using supplier evaluation sheets and quality diagnostic checklists to assess whether or not they are appropriate suppliers for us. This assessment focuses on areas such as production capacity, legal compliance, quality, and environmental friendliness. In the interest of strong governance, these assessments are not conducted by any single person. For suppliers that receive a lower rating in the area of quality, we ask them to submit corrective measures, and after implementing these measures, we reassess them in an effort to maintain and improve quality.
Green procurement
Not only do we use quality checklists to check for environmental friendliness but we also position “green procurement,” procuring materials with low environmental load, as one of our important environmental conservation activities. Our products are not subject to the Restriction of Hazardous Substances (RoHS) Directive, which went into effect in July 2006, but we promote the nonuse of RoHS-regulated substances due to the fact that the regulated substances may come in contact with our customers’ products that are made with AMADA machines.
Click here for information about green procurement.
Initiatives alongside our suppliers
Zero emissions/Improved transportation efficiency
We strive to build relationships with our suppliers that go beyond the bounds of business transactions and that allow for mutual growth.
For example, in the interest of environmental friendliness and improved transportation efficiency, we have adopted a recyclable return box system for packaging materials used for parts delivery, and use a transportation jig to efficiently transport items with complex-shaped items in fewer trips. From the machine design stage, we consult with suppliers on efficient transportation methods, and collaborate with them on production and other tasks.
Initiatives for protecting human rights
In the mineral procurement process, we strive to procure raw materials that are free from conflict, criminal involvement, and human rights violations.