Supply Chain Management
The Maxell Group is committed to contributing to the realization of a sustainable society through sincere and fair procurement practices. Together with our procurement partners, we strive to build a responsible supply chain that emphasizes respect for human rights, environmental protection, and compliance with laws and regulations.
Key Initiatives
Three Pillars of Procurement Activities
Based on the MVVSS, which is our fundamental management policy, we have reorganized our procurement activities into three main pillars. While adapting to changes in the market, we will achieve results by co-creating with our procurement partners to promote activities in line with this procurement policy.
Outline of Procurement Policy
Activities
Promoting Procurement Activities Linked to ROIC Management
We are advancing procurement initiatives in collaboration with the Profit and Loss Improvement by Model Project (PIPJ) and the Profit and Loss Control by Business (ABC-XYZ Control). Specifically, as a measure to address and improve unprofitable products, we are strengthening cost planning engineering and global procurement activities. Furthermore, we are aiming to foster co-creation and prosperity by engaging in joint cost reduction activities with our Procurement Partners and by welcoming their new proposals, such as unique technologies, advanced development, and new materials.
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Enhancing product competitiveness through material cost management
We will strengthen product competitiveness by thoroughly managing material costs for each product category through budget versus actual analysis. Specifically, with the Procurement SCM Department at the core, the Maxell Group will work as one in coordination with related departments, and while forecasting and analyzing market trends, we will implement measures toward achieving our cost targets by integrating the added value, improvement proposals, and new ideas held by our Procurement Partners. In addition, for indirect materials and common items that were previously procured independently by each business division, we are promoting company-wide consolidation and centralization, and continuously striving to improve operational efficiency and strengthen governance.
Promotion of Sustainable Procurement
・Promotion of CSR Procurement
We are advancing supply chain CSR procurement activities based on the CSR Procurement Guidelines revised in 2020. Since June 2021, we have participated in the United Nations Global Compact's Supply Chain Subcommittee, striving for further improvement by referencing the activities of leading companies.
・Strengthening BCP (Business Continuity Planning)
Procurement-related risks--such as natural disasters, geopolitical risks, and rising raw material prices--are becoming increasingly diverse and complex. To ensure stable procurement and business continuity, we are enhancing our BCP management framework in collaboration with our Procurement Partners. Since fiscal 2021, we have also expanded the scope to our overseas group companies, working on BCP surveys and the development of frameworks on a global basis.
・Enhancement of Compliance
We continue to implement legal compliance education internally and strive to ensure proper transactions with our Procurement Partners.
・Endorsement of the "White Logistics" Movement
In Japan, the "White Logistics" movement began in 2019 to address the severe shortage of drivers in the transportation and logistics industry, with the aim of stabilizing logistics and contributing to the growth of the Japanese economy. Our company has endorsed and participated in this movement, viewing logistics improvement as one of the management challenges from the perspectives of sustainable growth, compliance, and ESG.
In addition to improving our current transportation methods, we are continuously working on reducing waiting times of drivers by aligning production and packing with shipping schedules, allowing flexible delivery times as shippers, and ensuring sufficient lead time to improve the working environment for drivers and the productivity of logistics. We will continue to promote the efficiency of the entire supply chain to fulfill our corporate social responsibility.
・Statement of Support for the Declaration of Partnership Building
Maxell has publicly announced its support for the principle of the "Declaration of Partnership Building," which was introduced by the "Council for Promoting Partnership Building for the Future" and is promoted by the Cabinet Office, the Small and Medium Enterprise Agency, and other organizations. The Maxell Group will continue to comply with rules related to fair trade and actively work to build new partnerships with our Procurement Partners and companies that aim to create value.
・Transformation of Procurement Functions
Amid the rapidly changing environment surrounding procurement, we are rolling out our integrated core system across all sites and promoting electronic ordering and paperless operations to standardize and streamline our procurement business processes. At the same time, we are developing a foundation for the visualization and utilization of procurement data, driving the transformation toward a procurement function that can respond quickly and flexibly to change.
Promotion of CSR procurement
Policy
The Maxell Group promotes CSR procurement throughout our entire supply chain, based on our "Supply Chain CSR Procurement Guidelines." As CSR expectations placed on companies continue to evolve day by day, we revised these guidelines in January 2020 to center on contributing to the SDGs. Together with our procurement partners, we will advance initiatives related to respect for human rights, environmental consideration, and fair trade, and strive to fulfill our social responsibility across the entire supply chain.
Management, Structure, and Systems
Maxell Group collaborates across the entire group to engage in CSR procurement in order to fulfill social responsibilities throughout the supply chain. The goals and activity plans are discussed by a cross-divisional "Procurement Risk Management Committee," which consists of members from the procurement departments of all business divisions and group companies, with the headquarters Procurement & SCM Division serving as the secretariat. This committee ensures that the initiatives are communicated and implemented across the entire group.
CSR Self-Assessment (*1)
We check the state of compliance with the Maxell Group Supply Chain CSR Procurement Guidelines with our procurement partners using a CSR self-assessment questionnaire, and are working to understand the current situation and make improvements.
This is conducted using a questionnaire (SAQ: Self-Assessment Questionnaire*) whose evaluation items consist of "Labour (Human Rights)," "Health and Safety," "Environment," "Ethics," and "Management Systems" in accordance with the RBA (Responsible Business Alliance) Code of Conduct, together with "Quality and Information Security," which is our own original item.
Based on the SAQ evaluation results, suppliers rated as D-grade undergo on-site inspections and receive support for improvement activities, while suppliers rated as C-grade are required to submit written improvement plans and are continuously followed up to ensure improvement.
*SAQ self-assessment items: "Labour," "Health and Safety," "Environment," "Ethics," "Quality and Information Security," and "Management Systems"
| Rank / Evaluation points / Explanation | |
|---|---|
| A grade 85% or more |
・Actions are being taken at the required level of the CSR Procurement Guidelines. ・Items requiring improvement can be improved voluntarily. |
| B grade 65-84% |
・There are items that are not able to respond with the necessary level of the CSR Procurement Guidelines, and improvements are required. ・Items requiring improvement can be improved voluntarily. |
| C grade 50-64% |
・There are items for which action is not being taken at the required level in the CSR Procurement Guidelines, and improvement is necessary. ・An action plan should be prepared to improve items that need improvement, and improvements should be checked and reported based on this plan. |
| D grade 49% or below |
・ There are items for which action is not being taken at the required level in the CSR Procurement Guidelines, and improvement is necessary. ・It is necessary to prepare an action plan to improve items that need improvement, and to confirm the status of improvement based on it. The status of the improvement should be audited. |
Goal
To have all target suppliers achieve a B grade or higher by FY2027.
CSR Self-Assessment Results
Fiscal 2024 marked the final year of our three-year evaluation plan. We received responses from 199 suppliers, including 168 for direct materials and 31 for equipment-related procurement. In cases where the primary supplier was a trading company, we also requested cooperation from secondary suppliers to ensure comprehensive evaluation coverage.
Regarding the evaluation results, no suppliers were rated as Grade D. Grade C accounted for 5％ of the total (9 companies in direct materials). We have provided individual feedback to these suppliers and requested improvement efforts.
Summary of Actions Taken
・Provided individual feedback to applicable suppliers regarding their evaluation results
・Requested submission of improvement plans and supported each company in formulating and implementing corrective actions
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Self-Assessment Results List  |
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Initiatives to respect Human Rights
Maxell has established the "Maxell Group Human Rights Policy" based on international human rights standards, and is committed to respecting human rights in all business activities. In addition, we are implementing human rights due diligence in phases--identifying, assessing, and addressing human rights risks--and continuously monitoring and improving our practices to ensure that the human rights of employees and stakeholders are not violated. Moving forward, we aim to expand these human rights initiatives across our entire supply chain and, in collaboration with our procurement partners, build a more responsible procurement framework.
Responsible Procurement of Minerals
Maxell recognizes that minerals mined in the Democratic Republic of the Congo and surrounding regions may contribute to funding armed groups and lead to human rights violations and environmental destruction. In addition to tantalum, tin, tungsten, and gold (collectively known as 3TG), cobalt and mica have also been identified as carrying human rights risks. Maxell is committed to responsible sourcing of these minerals. We ask our procurement partners to investigate and report on the use of these minerals, and we strive to build a transparent supply chain.
Toward Collaboration with Our Procurement Partners
Maxell will continue to pursue ongoing improvement and collaboration toward realizing respect for human rights, environmental consideration, and ethical procurement throughout the entire supply chain. We kindly ask our procurement partners as well to understand our policies and to cooperate in our efforts toward the realization of a sustainable society.