Supply Chain Management
In engaging in new transactions, the IDEC Group will provide an environment in which all suppliers can trade with it in a fair and impartial manner. To increase customer satisfaction even further, it will strive to build a supply-chain management (SCM） system on a global basis, seeking to secure an extensive range of suppliers around the world. Together with aiming to procure materials with outstanding quality, cost, and delivery (QCD) performance and low environmental impact, it also will aim to realize coexistence and co-prosperity with suppliers as a good business partner.
To enable global production activities, outstanding parts and materials shall be procured from global suppliers in the optimal locations.
[Fair and impartial]
The Group will engage in fair transactions regardless of company size or nationality. Relations shall be built based on mutual cooperation and trust through transactions reflecting comprehensive, fair evaluation of matters, such as quality, price, delivery time, stability of supply, and CSR. In addition, information learned through transactions shall be managed appropriately and shall not be disclosed nor divulged to third parties or used for other than its intended purpose without permission.
Procurement transactions shall be conducted in compliance with laws and regulations, and standards related to environmental protection and proactive efforts shall be made to lessen environmental impact through means, such as development of environmental management systems together with suppliers thorough management of chemical substances, and promoting recycling of resources, to procure eco-friendly materials with low environmental impact and thus fulfill our corporate responsibilities to society.
CSR procurement shall be advanced, based on consideration for matters, such as legal and regulatory compliance, respect for human rights, health and safety, environmental protection, coexistence with society, and timely and appropriate disclosure of information. To response to increasing interest among customers in all processes involved in generating products and services, joint efforts will be conducted with the suppliers who play important roles in such processes based on a shared understanding of CSR.
Code of Conduct for Procurement Activities
1. Compliance with the Subcontract Act and other legislation
When procuring materials, we will comply with the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors and other related legislation.
2. Prohibition of abuse of dominant bargaining position
We will not take advantage of our dominant bargaining position to treat our materials suppliers or business partners in an unfair manner.
3. Procurement activities at appropriate prices
To supply products to customers at appropriate prices, we will act to ensure that we can procure appropriately priced materials, etc.
4. Prohibition of demands for entertainment and gifts
We will not demand nor accept entertainment and gifts from our materials suppliers or business partners. We will not behave in a manner that allows our selection of materials suppliers or business partners and our procurement activities with them to be affected by whether or not entertainment and gifts are offered.
CSR Procurement Guidelines
Based on these societal demands, these IDEC Group CSR Procurement Guidelines have been established to identify to members of the IDEC Group and its suppliers in more specific terms the Group’s thinking on CSR procurement.
These Guidelines clearly identify matters with which suppliers are expected to comply based on a shared understanding of our corporate social responsibility.
The IDEC Group strives to promote CSR procurement in cooperation with our suppliers.
- IDEC Group CSR Procurement Guidelines
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Communicating with Suppliers
On August 7, 2018, the IDEC Group invited 50 major suppliers to our head office to attend a CSR Procurement Briefing. Our C.E.O. explained the importance of CSR procurement, appealing for the understanding and cooperation of suppliers. The executive officer in charge of manufacturing and SCM explained our global supply chain. The general manager in charge of purchasing explained our Purchasing Policy and the IDEC Group CSR Procurement Guidelines.At one of IDEC’s major factories in Suzhou, China, the suppliers exchange meeting has been held each year since 2017 and a CSR Procurement Briefing was held in 2019 with 28 major suppliers.
In addition, at our production site in Inmu, Taiwan, a CSR Procurement Briefing was held in 2022 with the participation of 21 major suppliers. It was an opportunity to build strong partnerships with suppliers by introducing IDEC products using demonstration equipment and touring of the environmentally friendly factory (1,200 solar panels installed on the roof to reduce CO2 emissions through solar power generation).
PDCA Cycle for Supply Chain Management
As part of supply chain management, we conduct surveys via questionnaires and site visits. We will continue to grasp the updated business situation, make solution proposals in accordance with the CSR Procurement Guidelines, and request suppliers for their continued cooperation in CSR procurement.