Supply Chain Management
Growing Together with Our Procurement Partners
Maxell Group regards its procurement partners not merely as trading partners, but as important partners with whom we create value and achieve sustainable growth together. Amid changes in market conditions, geopolitical risk, fluctuations in raw material prices, and growing demands for sustainability, we are building mutual trust through fair and transparent transactions, and working to achieve a robust supply chain.
Guided by our open-door philosophy, we place great importance on dialogue with a wide range of procurement partners in Japan and overseas, and pursue co-creation from multiple perspectives that go beyond quality, cost, and delivery times to include technological capabilities and initiatives on the environment and human rights. Through sustainable procurement, human rights due diligence, and responsible mineral sourcing, we aim to fulfill our social responsibilities while enhancing corporate value.
Through these initiatives, we will deepen our collaboration with procurement partners, drawing on each other's strengths to contribute to stable supply, stronger competitiveness, and the realization of a sustainable society. Even in an era of rapid change, we aim to build a supply chain in which we overcome challenges and continue to grow together.
Based on MVVSS, our fundamental management policy, we have established the Three Pillars of Procurement Activities as the foundation of our procurement initiatives. While responding to changes in the market environment, we work together with our procurement partners to promote activities in line with this Procurement Policy and strive to generate sustainable results.
Activities
Promoting Procurement Activities Linked to ROIC Management
We are promoting procurement initiatives linked to the Profit and Loss Improvement by Model Project (PIPJ) and the Profit and Loss Control by Business (ABC-XYZ Control). Specifically, as part of improvement measures for unprofitable products, we are strengthening cost planning engineering and global procurement activities. In addition, through joint cost reduction activities with our procurement partners and by incorporating new proposals such as unique technologies, advanced development, and new materials, we are fostering co-creation and mutual prosperity.
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, will implement measures toward achieving our cost targets by incorporating the added value, improvement proposals, and new ideas offered 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
The Maxell Group promotes CSR procurement activities throughout the entire supply chain based on the Maxell Group Supply Chain CSR Procurement Guidelines. As the social responsibilities expected of companies continue to evolve, we revised the Guidelines in January 2020 with a focus on contributing to the SDGs and are promoting initiatives related to respect for human rights, environmental consideration, and fair trade together with our procurement partners.
Furthermore, since June 2021, we have participated in the Supply Chain Subcommittee of the United Nations Global Compact and have been striving to further enhance our efforts to fulfill our social responsibilities throughout the entire supply chain by learning from the activities of leading companies.
Efforts on procurement BCP
The entire Maxell Group is working to strengthen procurement BCP, with the aim of continuing procurement operations even in the event of a crisis*, and minimizing the impact on the Group's business and on society.
To minimize the impact when such an event occurs, we are promoting measures such as standardizing and using generic parts, adopting multi-vendor sourcing, diversifying and creating mutual backup among production sites, securing inventories, and securing alternative products. In addition, we are compiling supply chain information covering not only our primary suppliers but, wherever possible, secondary and further-tier suppliers as well, so that we can identify supply bottlenecks involving key components or materials sourced from a single company, and thereby maintain a state of readiness for emergencies.
*1 Events that create a risk of business interruption, such as natural disasters or infrastructure failures.
Statement of Support for the Declaration of Partnership Building
Maxell has expressed its support for the principles of the Declaration of Partnership Building, an initiative established by the Council for Promoting Partnership Building for the Future and promoted by the Cabinet Office, the Small and Medium Enterprise Agency, and other organizations, and has publicly announced its participation in the Declaration.
The Maxell Group will continue to comply with rules related to fair trade and actively pursue the development of new partnerships with our procurement partners and other businesses that aim to create value.
Statement of Support for the White Logistics Movement
In Japan, the White Logistics movement was launched in 2019 to address the ongoing shortage of drivers in the transportation and logistics industry, while helping to ensure logistics stability and contribute to the growth of the Japanese economy.
From the perspectives of sustainable growth, compliance, and ESG, we recognize logistics as one of our key management challenges. In support of the objectives of this movement, we have issued a Statement of Support and are actively participating in its initiatives.
In addition to improving transportation methods currently in place, we are continuously working to enhance drivers' working conditions and improve logistics productivity by reducing waiting times through production and packing aligned with shipment schedules, as well as by ensuring sufficient lead times as a shipper. We will continue to promote greater efficiency throughout the entire supply chain as part of our commitment to fulfilling our social responsibilities.
Enhancement of Compliance
With regard to compliance, we continue to provide legal compliance education internally and strive to ensure proper transactions with our procurement partners.
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 processes.
At the same time, we are developing a foundation for the visualization and utilization of procurement data, driving the transformation toward procurement functions that can respond quickly and flexibly to change.
Promotion of Sustainable Procurement
Policy
The Maxell Group promotes CSR procurement throughout the entire supply chain based on the Maxell Group Supply Chain CSR Procurement Guidelines. Together with our procurement partners, we promote initiatives related to respect for human rights, environmental consideration, and fair trade, and strive to fulfill our social responsibilities throughout the entire supply chain.
Sustainable procurement management structure
To fulfill our social responsibilities across the entire supply chain, the entire Maxell Group collaborates on sustainable procurement. Targets and activity plans are discussed by the group-wide Procurement Risk Management Subcommittee, made up of procurement department members from Group companies, and are then communicated and firmly instilled throughout the Group, ensuring reliable implementation.
CSR procurement self-assessment
Maxell Group works to understand and improve compliance with the Maxell Group Supply Chain CSR Procurement Guidelines among its procurement partners, using a Self-Assessment Questionnaire (SAQ) that evaluates "labor (human rights)," "health and safety," "environment," "ethics," and "management systems," in line with the Responsible Business Alliance (RBA) Code of Conduct, as well as "quality and information security," a category unique to Maxell Group. For procurement partners graded D or C in the SAQ results, we clarify the issues through audits and the issuance of improvement request letters, and follow up to support their improvement. At the same time, we continuously check on the status of corrective actions and reflect the results in subsequent SAQs and evaluations, helping to raise the level of CSR compliance across the entire supply chain.
| Scope of SAQ Implementation |
| 1. Direct materials | Raw materials, procurement partners accounting for 80% of the Group's procurement value |
| 2. Others *2 | Procurement partners with a permanent presence at production sites Procurement partners with regular transactions, such as for equipment and machinery |
*2 Selected based on procurement value, including Group companies
| Structure of SAQ Questions |
| Category | Questions |
| 1. Labor | 23 |
| 2. Health and safety | 22 |
| 3. Environment | 18 |
| 4. Ethics | 15 |
| 5. Quality and Info security | 9 |
| 6. Management system *3 | 19 |
| Total | 106 |
*3 Includes questions on management system evaluation and the protection of indigenous peoples
Goal
To have all target suppliers achieve a B grade or higher by FY2027
CSR procurement self-assessment survey results
In fiscal 2025, we received responses from 381 companies. No company received a D grade in the assessment results, while 69 companies received a C grade. We provided individual feedback to each company, and have asked them to create and implement plans for improvement. Going forward, we will expand Maxell Group's human rights due diligence initiatives across the supply chain as a whole, and realize sustainable and responsible procurement in collaboration with our procurement partners.
Summary of Actions Taken
Contacted the applicable companies individually and provided feedback on their evaluation results.
Requested the submission of improvement request letters, with each company formulating and implementing its own improvement plan.
| Self-Assessment Rating |
| Rating/Criteria | Evaluation | Response |
| A (Low Risk) 85% or Higher |
Practices meeting the requirements of the CSR Procurement Guidelines have been firmly established. | ・Please continue to maintain the current level of performance. |
| B (Medium Risk) 65-84% |
Some requirements of the CSR Procurement Guidelines have not been fully met. | ・A corrective action request will be issued, and improvement support will be provided. |
| C (High Risk) 50-64% |
Multiple requirements of the CSR Procurement Guidelines have not been met. | ・A corrective action request will be issued for non-conforming items. ・An improvement action plan will be requested for areas requiring improvement. ・Improvement progress will be reviewed based on the action plan. ・Support for improvement will be provided as necessary. |
| D (Critical Risk) 49％ or Lower |
Many requirements of the CSR Procurement Guidelines have not been met. | ・A corrective action request will be issued for non-conforming items. ・An improvement action plan will be requested for areas requiring improvement. ・Improvement progress will be reviewed based on the action plan, and support for improvement will be provided. ・If the required improvements are not implemented or identified issues remain unresolved after a specified period, future business transactions may be subject to review. |
| CSR procurement self-assessment survey results |
| FY2025 | |
| Grade | Number of Companies |
| A | 201 |
| B | 111 |
| C | 69 |
| D | - |
| Total | 381 |
Commitment to Human Rights
Based on international human rights standards, the Maxell Group has established the Maxell Group Human Rights Policy, and respect for human rights serves as the foundation of all our business activities.
In addition, we are implementing human rights due diligence in phases to identify, assess, and address human rights risks. We continuously monitor and improve our practices to help ensure that the human rights of our employees and stakeholders are respected. Going forward, we will expand these initiatives throughout the entire supply chain and work with our procurement partners to build a more responsible procurement framework.
Responsible Procurement Minerals
The Maxell Group conducts surveys on minerals mined in Conflict-Affected and High-Risk Areas (CAHRAs), including tin, tantalum, tungsten, and gold (collectively known as 3TG), as well as cobalt and mica, in accordance with the OECD Due Diligence Guidance. Using the Conflict Minerals Reporting Template (CMRT) and the Extended Minerals Reporting Template (EMRT) provided by the Responsible Minerals Initiative (RMI), we ensure supply chain transparency and assess risks.
Based on the survey results, when non-conformant smelters or refiners are identified, we request our procurement partners to transition to RMAP conformant smelters and refiners and recommend avoiding the use of high-risk smelters. Through these efforts, we enhance the effectiveness of responsible mineral procurement across the entire supply chain and aim to increase the proportion of sourcing from RMAP conformant smelters and refiners.
Collaboration with Our Procurement Partners
The Maxell Group will continue to promote continuous improvement and collaboration throughout the entire supply chain to advance respect for human rights, environmental responsibility, and ethical procurement. We kindly request our procurement partners to understand our policies and cooperate with us in our efforts to realize a sustainable society.