Supply Chain Management

We have established three basic policies for procurement: "Building long-term partnerships based on mutual trust", "Fair and open procurement", and "Compliance and confidentiality". With the promotion of DX (Digital Transformation) during the Covid-19 pandemic, we are also advancing online interviews and web-based procurement with our suppliers, but our three basic policies remain unchanged.

Recent social trends, such as corporate scandals, the emergence of employment and labor problems associated with economic crisis, and global environmental issues, have led to expectations for stronger corporate social responsibility (CSR) initiatives. In this context, we would like our suppliers to understand our CSR activities and, based on mutual trust, we want to strive to fulfill our CSR not only in our company but also in the entire supply chain. As part of these activities, we established the "NHK Spring Group CSR Procurement Guidelines" in 2014. Japanese, English, Chinese, and Thai versions of the CSR Procurement Guidelines are posted on our website. We also conduct a questionnaire covering the contents of our CSR Procurement Guidelines once a year to more than 1,000 suppliers. The survey items cover a wide range of topics including compliance, risk management (BCP), human rights, labor, and the environment.

More than 1,000 companies surveyed

In recent years, there has been concern that minerals illegally mined in areas surrounding Congo in Africa are funding anti-government militias responsible for causing human rights abuses. The Financial Regulatory Reform Act passed in the U.S. in 2010 defines tantalum, tin, gold, and tungsten as conflict minerals and requires companies listed on U.S. stock exchanges to disclose information on the use of conflict minerals in their products. In addition, the target minerals and areas have been expanded since around 2020 in anticipation of corporate ESG initiatives. In the procurement of raw materials and parts derived from such minerals, from the perspective of "addressing human rights issues in the supply chain," we will work with customers and suppliers to promote initiatives to eliminate the use of illegally mined minerals.

As a member of the Japan Auto Parts Industries Association (JAPIA), NHK Spring  works to ensure proper transactions in accordance with JAPIA's "Autonomous Action Plan for Promotion of Proper Transactions and Improvement of productivity and Added Value". 
(The NHK Spring website gives an introduction to our "Initiatives to Realize Proper Transactions". )
In consideration of recent soaring labor costs, raw materials costs, energy costs and so on, and comments and requests from the Small and Medium Enterprise Agency and the Japan Fair Trade Commission, we offer opportunities to discuss prices and strive to respond in good faith if business partners request discussions. 
Moreover, the President & CEO utilizes various opportunities via videos, letters, etc. to convey to the entire NHK Group the importance of conducting sincere discussions with business partners and trading at fair prices. Also, through holding explanation meetings and so on to further enhance effectiveness, we aim to promote awareness and penetration of these principles to managers and persons in charge engaged in purchasing and procurement operations. 
Concerning business partners that are subject to the Subcontract Act, we advance the following kind of initiatives in compliance with the law upon announcing a "Partnership Building Declaration". 

In addition to distributing checklists to purchasing-related departments including Group companies and encouraging them to regularly conduct self-inspections, we conduct audits of the Subcontract Act, etc. during regular audits conducted by the Internal Auditing Department. As with other audits, we follow up on the findings until they are completely addressed.

In accordance with the request concerning "Means of payment of subcontracting payments" made by the Small and Medium Enterprise Agency, since the end of November 2022, we have switched from conventional 60-day bills or electronically recorded monetary claims to cash payments (bank transfer) in an effort to assist the business activities of business partners that are subject to the Subcontract Act.
The NHK Spring Group is committed to making even greater efforts across the Group to ensure that proper transactions are realized over the entire supply chain. 

We believe that one of our social missions is to quickly restore operations and provide a stable supply of products in the event of disasters. However, to achieve this, not only our company but also our business partners need to work together for early restoration. We have introduced safety confirmation service to all of our employees to rapidly assess the impact on our supply chain and help us achieve quick recovery and secure stable supply in the event of large-scale natural disasters.

NHK Spring conducts business with suppliers based on three basic policies for procurement: "Building long-term partnerships based on mutual trust," "Fair and open procurement," and "Compliance and confidentiality". In the event of any violation or suspected violation of these basic policies by NHK Spring-related parties, or any violation of laws and regulations such as the Subcontract Act, or any other compliance violation, we will receive reports from our business partners, and will strive for early detection, prevention, corrective action, and recurrence prevention of the problem, thereby fulfilling our social responsibility as a corporation and widely contributing to society. We are committed to building relationships of trust with our business partners.