Supply Chain Management

We are committed to development that should contribute to society and strive for lasting transactions, while respecting each other's position and rights when engaged in corporate activities within international society.

Basic Purchasing Policy

The Ushio Group's 10 Action Guidelines expresses our commitment to always respecting the position and rights of the other party in business dealings, to conducting transactions fairly and equitably, and to not taking advantage of a dominant position to impose inappropriate terms or conditions. We also promise to work to prevent corruption and carry out appropriate business transactions in line with socially accepted practices.

  1. Compliance with Laws and Social Norms
    Ushio complies with laws and social norms, faithfully conducts contractual obligations and engages in business transactions while abiding by statutes to protect business partners and sound business customs.
  2. Fair and Equitable Business Opportunities
    Ushio provides fair opportunities with new business transactions and decides based on equitable and objective judgments.
    Decisions regarding transactions are based on a stipulated procedure of comprehensive judgements based on quality, price, stable supply, delivery response, and technological development together with management stability, environmental consideration, social contribution and the state of initiatives for CSR.
  3. Building Relationships of Trust
    Business transactions are always maintained on a relationship of trust based on mutual understanding achieved through dialogue and working toward development and lasting transactions.
  4. Environmentally Conscious Purchasing
    In regard to the environment, Ushio engages in green procurement, complying with international regulations, statutes, agreements, guidelines, customer standards and our own standards.
  5. Maintenance of Confidentiality
    Confidential information from companies, suppliers or any third party will not be disclosed without following prescribed procedures, nor will it be leaked. Regarding procurement activities, unfair means will not be used to acquire confidential information from suppliers or any third party.
  6. Procurement Activities
    Procurement activities will be conducted by those in charge of purchasing in the Procurement Department who have undergone the prescribed education and guidance.

Supplier Selection Guidelines

Figure: Supplier Selection Guidelines

About the Ushio CSR Procurement Policy

Ushio is meeting its social responsibilities as a corporate citizen by supplying superior products and services to the global market through free and open corporate activities. For its procurement activities and in the spirit of encouraging coexistence and prosperity for all, Ushio has defined the five points below as the Ushio CSR Procurement Policy, encapsulating its respect for laws, social norms and environmental protection.

  1. Human Rights Alongside Occupational Health and Safety
  2. Environmental Consideration, Green Procurement
  3. Ensure Product Safety
  4. BCP (Business Continuity Planning)
  5. Fair and Equal Transactions, Legal Compliance
  6. Information Security

CSR Procurement Policy

Promoting Green Procurement and Compliance with International Environmental Laws and Regulations

Ushio's products are delivered to a variety of countries and are used in various fields. Ushio has formulated its original Green Procurement Standards as guidelines for purchasing component materials to respond appropriately to laws and regulations in various countries and territories based on international standards, naturally including RoHS, and responds to requirements related to harmful substances in products.

Responding to Increasingly Complicated and Expanding Environmental Information Management (Web Operations)

Types of chemical substances found in products and product categories for which these are applied are increasing and updated every year. The scope of product categories under RoHS regulations, in particular, is scheduled to expand significantly from 2017 onward.

Ushio devices and products are comprised of numerous types and varieties of materials and we have updated and strengthened the Environmental Management System (ECODUCE) for materials in order to respond to these strict requirements. By exchanging environmental information with business partners on websites, it is possible to acquire more accurate environmental information and significantly reduce the corresponding number of work processes.

Moreover, the Risk Management Office gathers the latest appropriate information on laws and regulations and communicates this to various bases to advance timely construction of a value chain. Ushio's Green Procurement Standards are published on our website to enable our customers and business partners to always view the latest status.

Promote of chemSHERPA to supply chain

Ushio promotes the transmission of information on contained chemical substances through the supply chain and compliance with environmental laws and regulations of each country. As a member of the Article Management Promotion Council (JAMP), we are promoting the industry-wide format chemSHERPA. We are working to improve the efficiency of environmental friendliness by cooperating with our business partners in adopting chemSHERPA.

Working Together with Business Partners

Ushio holds regular procurement and CSR procurement briefings for business partners. We explain our CSR Procurement Policy and Green Procurement Standards, as well as updates on revisions to RoHS and REACH regulations to deepen understanding of CSR procurement throughout the entire supply chain and ask for cooperation for CSR procurement.

Moreover, Ushio is moving ahead on deepening mutual understanding with respective business partners through dialogue as well as enhancing responsive capabilities in regard to stable supply and quality. Through such measures as holding meetings to explain revisions in Green Procurement Standards, the RoHS directive and REACH regulations, Ushio strives to improve customer satisfaction regarding its products as well as in the market.

Responses to Overseas Customers

Ushio's products are shipped worldwide to customers spread out around the globe. Moreover, in production and procurement, we now conduct business with overseas counterparts on a daily basis.

In order to address export-import controls, which require strict execution, and the laws and regulations of various countries, we must respond promptly to requests and inquiries concerning the environment from our customers at overseas bases. For this, the Harima Division and overseas bases have formed collaborative teams and are working to enhance the quality of the environmental responses of overseas bases.

In addition, in regard to surveys of procurement from overseas suppliers, we have begun conducting surveys that are equivalent to those of our suppliers in Japan from fiscal 2016, targeting suppliers with whom we conduct a large volume of business and suppliers whose items are often used in general merchandise. However, given that circumstances differ by region or country, we are implementing measures such as preparing road maps based on two-way discussions in the course of successively advancing surveys.

Expansion of CSR Procurement to Overseas Bases

(Target) Expand CSR procurement activities to overseas bases and enlarge these activities
(Achievement) Reached agreement on the promotion of CSR procurement at the Group Procurement Conference, and commenced questionnaires and explanatory briefings at certain overseas bases.
(Expansion) Consider implementation at other overseas manufacturing bases and Group companies.

Building Relationships with Suppliers

Ushio holds explanatory briefings for its suppliers as necessary and in a timely fashion, following revisions to laws, regulations and standards, and other factors. On revising Ushio's green procurement standards, we explained our review of all the standards in line with amendments to laws and regulations and the additional chemical substances our suppliers will need to check. With regard to CSR procurement, we explained the Ushio CSR Procurement Policy and conducted the CSR Procurement Questionnaire.

Through questionnaires and explanatory briefings about our procurement activities, we have our suppliers learn more about the meaning behind CSR procurement at Ushio, the benefits of working together to mutually develop CSR activities and the strengthening of relationships with customers. Moreover, Ushio conducts promotion and awareness-raising activities by sharing its vision for CSR with suppliers.

At the same time, when necessary, Ushio interviews and audits suppliers whose CSR procurement initiatives need improvement, and provides guidance in those areas. We are taking initiatives to improve our CSR procurement activities by helping our suppliers in these ways. Through these initiatives, Ushio is working to build relationships with its suppliers in order to more effectively and efficiently advance CSR procurement activities.

Education Programs for Internal Procurement Departments

Ushio provides the necessary training programs for procurement managers. These programs provide a greater understanding of the Company's procurement practices, along with covering the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors, environmental regulations, and the Foreign Exchange and Foreign Trade Act, among other matters. Efforts are made to ensure that procurement managers conduct appropriate transactions and maintain good relationships with suppliers.

In detail, for all employees involved in procurement duties, Ushio implements measures to ensure that appropriate transactions are undertaken at all times, including holding study sessions on the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors and conducting internal audits. Moreover, Ushio has embraced “Thinking and acting together with suppliers” as its basic principle. For example, if delays in delivery or quality issues arise, we respond by investigating the cause of the problem, taking countermeasures and so forth. These activities have produced benefits such as improving the delivery deadline compliance rate.