Promoting CSR throughout the Supply Chain
As a global corporation with operations in 38 countries and regions, DENSO aims for optimum procurement and purchases components, materials, and equipment worth ¥2.0 trillion from some 5,600 suppliers each year (with a local procurement rate of about 70%).
DENSO has established five policies, shared by all Group companies, based on the principle of open, fair, and transparent transactions in the DENSO Group Declaration of Corporate Behavior. Accordingly, DENSO has made an explicit commitment to an “open door policy” that provides opportunities for suppliers to participate in its business in a fair manner without regard to national origin, company size, or previous transaction history. DENSO is also committed to undertaking efforts to realize mutual development by designating suppliers as equal business partners and to comply with Japan’s Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors and the laws and regulations of each country and region in which the Company is active.
Basic Approach to Procurement
- Open door policy
- Mutual growth based on mutual trust
- Promotion of green procurement in consideration of the environment
- Promotion of local procurement aiming to be a "good corporate citizen"
- Permeation of compliance with laws and regulations and confidentiality
As the global procurement Head Office, DENSO CORPORATION coordinates with the procurement departments of each overseas regional headquarters to promote local procurement.
Number of Regional Suppliers/Local Procurement Rate
Strengthening partnerships with suppliers
DENSO uses its corporate website, the General Meeting of Suppliers, and other means to share information on procurement and other policies in order to facilitate mutual growth with our suppliers in the midst of global competition. The Company has also created the Constitution Assessment Program for Suppliers in an effort to strengthen partnerships. DENSO utilizes this program to help suppliers reinforce their business structures and to recognize outstanding supplier performance.
At overseas Group companies, the procurement departments of each regional headquarters are playing a central role in working through the General Meeting of Suppliers and discussions with individual suppliers to deepen mutual understanding and establish policy to further the development of all parties.
2017 DENSO SUPPLIERS CONVENTION
On May 22, 2017, the 2017 DENSO SUPPLIERS CONVENTION was held at Nagoya Tokyu Hotel, with a total of 341 suppliers invited, including 12 from outside Japan. Under the theme of this year’s meeting “TSUNAGARI, ties between suppliers and DENSO”DENSO shared its continued commitment to manufacturing; strengthened its partnerships with suppliers; and pledged to promote initiatives for global change together. An awards ceremony was also held at the General Meeting of Suppliers to celebrate exceptional suppliers.
Comment of the award winner
Supplier of the Year: NICHIA CORPORATION
It is a challenge to maintain quality while keeping the highest levels of performance and characteristics in the industry, but we made efforts with the belief that it is essential to set ambitious goals. We wish to offer new devices and underlying technologies to meet future changes in the business environment, and we will make further efforts to offer new products that contribute to society with DENSO.
Regional Top Performance Award: SANATAN AUTOPLAST PVT. LTD.
We remain committed to maintaining quality because we receive orders for important components from DENSO. To increase our competitiveness and achieve further growth,ｗe will improve our capability to export our products around the world and become a truly global partner for DENSO.
Ensuring that procurement departments practice open, fair, and transparent transactions
At DENSO, to instill a mindset that supports open, fair, and transparent transactions, procurement departments are engaging in awareness-raising activities such as distributing and sharing the Code of Conduct for DENSO Group Associates, which outlines such a mindset as well as standards of behavior among all employees involved with procurement.
Going forward, we will make efforts to strengthen partnerships with suppliers and continue to offer customers fulfilling products and services through the procurement of parts,materials, equipment, and services that are superior in terms of quality, technology, cost, time to delivery, and environmental and safety compliance. In these ways, we will work toward mutual growth with our suppliers.