Relationship with Suppliers

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 management, 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.

Sustainable, optimal and strategic procurement globally

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 efficiency, quality and governance 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

Communication activity

We have always supported our suppliers when they faced problems. Starting in 2023, we designated March and September as months discussions on prices and issues as part of our efforts to strengthen partnerships. In addition, we will endeavor 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 voluntary study activities (on-site improvement, CN improvement case studies).
We will continue communicating company policy and expected activities at new year greeting parties or general meetings of the Suppliers Cooperative, sharing what issues should be tackled. We aim to solve issues and establish long-term trust based on mutual understanding and cooperation.

In April 2022, Futaba announced its Declaration on Partnership Building in support of the objectives of the Partnership Building Promotion Council for the Future, which includes the Cabinet Office and the Ministry of Economy, Trade and Industry among others.

Partnership Building Promotion

Activities of Suppliers Cooperative and developing human resources

We continue to conduct subcommittee activities, seminar, plant tour, management roundtables, Futaba Juku (study groups for future generations), safety education, and quality support activity, etc. As a new activities, we also conduct safety & quality hands-on training, health management web seminar, sharing hands-on examples of energy-saving dojo, information security seminar, BCP equipment exposition/ Web seminar, and QC circle training, etc. We will enhance safety culture and individual ability to create organization with supplier that every person is able to participate.

Working towards CO2 emissions reduction
and sustainable supply chain

We promote initiatives based on the philosophy of SDGs throughout the entire supply chain that includes customers and suppliers.

Basic Policy for SDGs-Based Procurement for future

Sustainability initiatives in procurement

Supplier Sustainability Guidelines exist in order to present 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.We have shared these with our suppliers and are strengthening the entire supply chain through periodic evaluations and continuous initiatives.
In the Green Procurement Guidelines, with the aim of developing an environmentally friendly and sustainable supply chain, this guideline was revised in March 2023 to add the promotion of initiatives related to CO₂ emissions reduction, efficient use of resources, the impact on water environments, and the creation of a society in harmony with nature. We shared our plans for the medium- to long-term reduction of CO₂ emissions with our suppliers and are making efforts toward the development of a decarbonized society. By 2022, all of our suppliers became able to grasp their own total emissions. Starting in FY2023, we began supporting 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 encourage our suppliers to use our "Energy-saving dojo" as a place to provide examples of energy-saving improvements. In this way, we are working to expand our knowledge of energy conservation. We are also working to strengthen our suppliers' efforts by sharing examples of our own initiatives, as well as the good practices contributed by business partner.
We will continue to promote further understanding of the societal need for decarbonization through a variety of activities.

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.

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

Futaba promotes procurement activities considerate of human rights, the environment, etc. We believe that initiatives for the respect of human rights need to be promoted not only at the company, but also throughout the supply chain overall. We require regular self-evaluations and continuous efforts to make corrections.
We also recognize that responsible procurement of mineral resources and raw materials is a significant issue across the supply chain, and periodically examine and track the use of conflict minerals on a global basis.

Employee education and training

Futaba uses e-learning and takes/analyzes survey and provides education to a wide range of employees not only purchasing division but also including manufacturing 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 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.