Basic approach

1. Optimum purchasing based on openness and fairness

We select suppliers by making clear our expectations on safety, quality, delivery time, cost, technology, SE ability, SDGs, and information security and properly assess their achievements and other outcome.

2. Strategic purchasing in global and SDGs aspect

To adapt to customers' monozukuri, new technologies, and new production methods, we proactively cooperate with local suppliers to strengthen our procurement base and contribute to the regional community.

3. Long-term continuous business built upon mutual trust

Under the premises that the transactions will be a long-term transaction, we will aim to achieve mutual prosperity and increased competitiveness of the entire supply chain through interactive communication and support.

Taking on challenges together in partnership with the supply chain

While the environment is changing dramatically, including the electrification of vehicles and increasing needs to work on carbon neutrality and the SDGs, we are considering various measures to respond to these changes in the supply chain overall, including suppliers. And, we will also provide various opportunities to enable suppliers to respond to these difficulties themselves.
While developing and sharing a common basic way of thinking, policy, and mindset for Futaba procurement globally, procurement functions are promoting global One Team Purchasing activities that depict the ideal vision from a medium to long-term perspective. Futaba is aiming to operate an optimal system that ensures the governance and quality and efficiency of our work, and to realize forward-looking strategic procurement based on both independent operations in each region and overall optimization.

Establishment of trust with suppliers

Specific activities

We hold purchasing policy briefings to explain our annual policies, initiatives, and future direction.
We also use these in the aims of deepening mutual understanding and building long-term relationships of trust by sharing specific activities and targets for safety, quality assurance, stable supply, cost, etc. for each supplier through expected activities. In addition, we honor and commend our suppliers for their outstanding results.

Communication activity

Since FY2023, we have designated March and September of each year as months for discussions on prices and issues, and have been engaged in individual communication activities regarding the labor environment and logistics issues, which are changing rapidly, and promoting initiatives to help suppliers solve their problems. Furthermore, we hold management roundtables to exchange opinions and share information on various management issues in an effort to strengthen partnerships.

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  Purchasing policy briefing (held live online)

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  Management roundtable

Activities to strengthen collaboration and competitiveness through expansion of internal activities

We are endeavoring to strengthen competitiveness throughout the supply chain by enlisting suppliers' participation in production quality improvement confirmation meetings, which are the internal meetings for reporting improvement activities, and production division meetings (on-site improvement, CN improvement case studies). New activities include safety and quality experience education, information security seminars, and health management seminars, and we will continue to expand these collaborations going forward.

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  Participation in a production division meeting

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  Participation in safety and quality experience education

Activities of Suppliers Cooperative and developing human resources

In FY2024, we launched theme study groups as one of the activities of Suppliers Cooperative. Study groups met on specific themes such as how to work/work style reforms, carbon neutrality, and improving proposal capabilities, as we aim to build an organization that every employee can play an active role by promoting mutual improvement among suppliers.

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  Suppliers Cooperative seminar

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  Energy-saving dojo

Sustainability initiatives in procurement

Based on the "Futaba Group Environmental Charter" and our "Environmental Policy," we are promoting initiatives throughout the entire supply chain, including our customers and suppliers, aimed at achieving an environmentally friendly and sustainable supply chain in line with the principles of the SDGs.

Basic Policy for SDGs-Based Procurement for future

• 1. We will position SDGs(especially ESG) issues and initiatives as main activities to be addressed by the partners of the entire supply chain and share information, obtain understanding of the current situation, hone each other's skills, and confirm progress.
• 2. We will reach out to, offer support, and cooperate with those in our supply chain to execute countermeasures.
• 3. We will, in the future, incorporate each company's attitudes towards addressing SDGs issues and the results of those actions in the performance assessment and in selecting the suppliers.

Initiatives for Supplier Sustainability Guidelines and Green Purchasing Guidelines

With the aim of making business operations sustainable, we formulated the Supplier Sustainability Guidelines and Green Purchasing Guidelines, thereby stating our expectations toward our suppliers. We promote sustainability-oriented business activities with them based on mutual understanding and trust.
The Supplier Sustainability Guidelines were formulated under the belief of the necessity of working across the entire supply chain to promote issues and ideas from diverse perspectives, such as prohibitions on illegal immigration, child labor, and forced/excessive labor, the protection of human rights and the concept of equality, mutual dialogue with employees, prohibitions on harassment, diversity & inclusion, prioritizing a safe and healthy working environment, initiatives to improve skills and capabilities, fostering a corporate culture that develops personnel, and more.
In the Green Purchasing Guidelines, the Group is promoting initiatives in order to realize an environmentally friendly and sustainable supply chain besed on the Futaba Group Environmental Charter and Environmental Policy. This includes compliance with laws and regulations, management of chemical substances, reduction of CO₂ emissions, efficient use of resources, impacts on the water environment, and the creation of a society in harmony with nature.

Initiatives for Carbon Neutrality

We shared our plans for the medium- to long-term reduction of CO₂ emissions as priority items with our suppliers and are making efforts toward the development of a decarbonized society. By FY2022, all of our suppliers became able to grasp their own total emissions. In FY2023, we supported suppliers in measuring the amount of electricity consumed by their respective facilities so that they would be able to develop concrete visions of how they can begin cutting down on their emissions. In addition, we invite suppliers to participate in our "Energysaving dojo" as a place to provide examples of energy-saving improvements, and conduct activities to broaden knowledge of CO₂ emissions reduction. We are also working to strengthen our customers' efforts by sharing examples of our own initiatives, as well as the good practices contributed by suppliers online.

Respect for human rights and responsible procurement of minerals（conflict minerals）

In order for business activities to respect human rights based on the Futaba Group Human Rights Policy, we are continuously demanding that suppliers periodically conduct self-assessments and redress issues (in FY2023, we engaged with 127 companies). In order to gain suppliers' support our human rights policy, we have entered into memorandums of understanding focusing on the human rights of workers. We also recognize that responsible purchasing of mineral resources and raw materials is a significant issue across the supply chain, and regularly conduct surveys on the use of conflict minerals and extended minerals on a global basis.

Risk assessment for new suppliers

We have established and operate internal rules on the necessity of transactions, risks, and other confirmation items with regard to suppliers with whom we are going to start transactions newly. After evaluating their financial situation, technical capabilities, prices, the state of acquisition of certification related to quality management such as IATF 16949 and ISO 9001, and other items, we evaluate their management capabilities based on audits before deciding whether or not to start transactions.

Employee education and training

Futaba uses e-learning and takes and analyzes survey and provides education to a wide range of employees not only purchasing division but also including productions division to further enhance partnership with supplier, so that each and every employee engaged in procurement activities can respect suppliers as partners and promote fair and honest procurement activities. In addition, we provide education continuously for compliance with the Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors and other laws and regulations, as well as education on the basic attitude and basic knowledge required for procurement work to employees in procurement functions.