Supply Chain Management
Maxell Group is committed to contributing to the realization of a sustainable society through honest and fair procurement activities. Together with our business partners, we will strive to build a responsible supply chain that emphasizes respect for human rights, environmental conservation, 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 partners to promote activities in line with this procurement policy.
Outline of Procurement Policy
Activities
Promoting Procurement Activities Linked to ROIC Management
We will advance 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 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 managing material costs for each product category through budget versus actual analysis.
Specifically, by coordinating activities among corporate procurement, business division procurement, and related departments, we will implement measures towards our cost targets through integrating our partners' added value, improvements, and new ideas while forecasting and analyzing market trends. Additionally, we are dedicated to continuously pursuing operational efficiency by consolidating and centralizing the procurement of indirect materials and common items-previously acquired independently by business divisions-to the procurement headquarters.
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)
With the increasing procurement risks such as natural disasters, rising raw material prices, and shortages of electronic components, we are enhancing our partners' BCP management. Since fiscal 2021, we have also been conducting BCP surveys at our overseas group companies.
・Enhancement of Compliance
We continue to implement legal compliance education internally and strive to ensure proper transactions with our 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 business partners and companies that aim to create value.
Promotion of CSR procurement
Policy
Maxell Group is committed to promoting CSR procurement throughout our supply chain, guided by our "Supply Chain CSR Procurement Guidelines." As CSR expectations evolve, we revised these guidelines in January 2020 to align with the SDGs. We encourage our suppliers to enhance their CSR activities, with key suppliers participating in self-assessments to further promote CSR procurement.
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.
Procurement Risk Management Committee
Maxell Procurement & SCM Div.
Maxell Energy Div. Procurement Dept.
Maxell Functional Materials Div. rocurement Dept.
Maxell Optics & Systems Div. Procurement Dept.
Maxell Frontier Procurement Dept.
Maxell Izumi Procurement Dept.
Maxell Kureha Procurement Dept.
Ube Maxell Kyoto Procurement Dept.
CSR Self-Assessment (*1)
Since fiscal 2019, we have been using a CSR self assessment questionnaire to check the state of compliance with the CSR Procurement Guidelines at important suppliers in Japan and overseas, and are working to understand the current situation and make improvements.
The CSR self-assessment is conducted for critical suppliers (direct materials: accounting for 80% of procurement amount and parts suppliers with no alternative procurement; indirect materials: equipment-related suppliers) using a questionnaire developed by Maxell based on the on-site audit standards of the RBA (Responsible Business Alliance). This initiative is being carried out on a three-year cycle, and from fiscal 2022, the scope is being expanded to include equipment-related suppliers in addition to critical direct materials suppliers.
Based on the SAQ evaluation results, suppliers rated as D-grade undergo on-site inspections and receive support for improvement activities. Suppliers rated as C-grade are required to submit written improvement plans and are continuously followed up to ensure progress.
*The SAQ covers self-assessment items in the following areas: 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. 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 rights of employees and stakeholders are not violated. Moving forward, we aim to expand these efforts across our entire supply chain and work in collaboration with our business partners to 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 business partners to investigate and report on the use of these minerals, and we strive to build a transparent supply chain.
Toward Collaboration with Our Business Partners
Maxell is committed to the continuous improvement of the entire supply chain, toward the realization of respect for human rights, environmental consciousness, and ethical procurement. We kindly ask our business partners for their understanding of our policies and their cooperation in working toward a sustainable society.