With Business Partners
Suppliers of raw materials and parts, indirect materials, facilities, subcontractors for products production, products distribution are indispensable to our business activities, as well as important business partners that together fulfill our responsibilities to society.
Based on this recognition, Maxell Group will develop CSR activities in concert with its business partners and implement activities that sincerely respond to the expectations and demands by each business activity
Priority Measures in the Three Pillars of Procurement Activities
Based on the MVVSS, "Maxell group's company basic management policy", we have reorganized our procurement activity initiatives in the Three Pillars of Procurement Activities. By responding to the market environmental changes, we will proceed and achieve our targets by promoting activities in accordance with this procurement policy with our suppliers cooperation.
1．Procurement activities linked to ROIC management
We will promote procurement measures in conjunction with the P/L Improvement by Model Controlling Project (PIPJ) and P/L management by individual business (ABC-XYZ management).Specifically, we are working to strengthen cost planning-engineering and global procurement activities as countermeasures and improvement for unprofitable products.
In addition, we will lead to achieve mutual cocreation and co-prosperities with our business partners by co-working for cost reduction activities, as well as, offered new proposals (original technologies, cutting edge-technologies, new materials, etc.).
2．Strengthening Product Competitiveness through Material Cost Management
We will strengthen product competitiveness through forecast and actual cost management in material costs by product category.
Specifically, we will take measures against cost targets by incorporating the added value, improvements, and new ideas of our suppliers while forecasting and analyzing market trends through coordinated activities between corporate procurement, business division procurement, and related divisions.
In addition, we are continuing our efforts to proceed more efficient operations by consolidating procurement of indirect materials and common materials, which had been independently procured by business divisions, into Procurement & SCM Business Unit."
・Promotion of CSR Procurement
We are promoting supply chain CSR procurement activities based on the CSR Procurement Guidelines revised in 2020. we have participated in the Supply Chain Subcommittee of the United Nations Global Compact since June 2021, and are striving to further improvement of our activities quality level by referring the other leading-companies activities.
・Strengthening BCP (Business continuity planning)
As procurement risks are increasing due to natural disasters, soaring raw material prices, shortage of electronic devices, etc., we are strengthening BCP management at our suppliers We have been conducting BCP surveys at overseas Group companies since fiscal year 2021.
Regarding compliance, we continuously provide a compliance policy education to all related members in the Company, and strive to ensure the appropriate transactions with suppliers.
・Announcement of endorsement of the "White Logistics" movement.
In Japan, "White Logistics" movement began in 2019 with the aim of stabilizing logistics and contributing to the growth of the Japanese economy in order to respond to the shortage of drivers in the transportation and logistics industries, which are continuing to face serious conditions in the future.
From the perspectives of sustainable growth, compliance, and ESG, we consider logistics improvement to be one of management issues, and express our endorsement of the objectives of the campaign. In addition, improving the transportation methods, we are currently working to shorten the driver's waiting time by adjusting our production and packing schedule for out going shipments. We will secure sufficient lead time by allowing the shipments/delivery contractors before shipments. In this way, we will continuously strive to improve the working environment for drivers and improve logistics productivity. We will continue to promote efficiency throughout the supply chain to fulfill our corporate social responsibility.
Supply Chain Management
Maxell considers our suppliers to be important business partners in its business activities, and conducts procurement activities aiming to build mutual trusts and relationships, and also foresees further developments, based on the principle of fairness and co-existence and co-prosperity.
CSR Procurement Promotion Program
In fiscal 2019, we launched a CSR-based procurement promotion program. The program calls for compliance with the Procurement Guidelines, supplier self-evaluations, on-site surveys, and PDCA cycles for improvement activities. Through this initiative, we are conducting improvement activities in cooperation with our business partners to raise the quality level of CSR procurement.
Since FY 2019, the CSR Self-Assessment Questionnaire has been started for our important suppliers in Japan, to confirm their CSR status, and to make improvements if necessary needed. CSR self-assessment is conducted using Maxell's own questionnaire (SAQ:Self-Assessment Questionnaire) , based on the on-site auditing standards of the RBA (Responsible Business Alliance) . For key-suppliers of direct materials (80％ of procurement total value and components suppliers that do not have any substitute alternative), we evaluate the SAQ assesses risks in the six areas of "Labor," "Health and Safety," "Environment," "Ethics," "Quality and Information Security," and "Management System", specified in the procurement guidelines.
If the SAQ evaluation results indicate a rating D grade, we conduct on-site surveys and provide support for improvement activities. If C grade is determined, we ask to submit a written response for the improvement plan and follow them up, which leads to improvement activities. we continuously encourage to promote its rating, B grade or higher.
This initiative has been started in FY 2019 as a three-years plan. In FY 2021, as the third year of the program, we received SAQ responses from 206 of our direct material key-suppliers. In cases which the tier-one supplier was a trading company or distributor, we also have asked them to have the tier-two suppliers SAQ responses as well. Regarding the evaluation results, D grade was not applicable, and C grade was 5％ (11 companies). We are continuing to follow up to achieve the improvement plan. Also as company internal education, E-learning on "Supply Chain CSR Procurement" was implemented in FY2021 for our procurement department staffs to understand and practice the knowledge of CSR (83 participants).