Relations with Suppliers

Procurement

 The Alps Electric Group maintains fairness in its dealings with suppliers and builds relationships of cooperation and mutual trust based on underlying sincerity.
 Our procurement policy is to help bring about sustainable development with attention to safety and environmental concerns.

 

Aiming for Relationships of Mutual Trust and Cooperation

Promoting Green Procurement

Our Green Procurement Standards are deployed globally in Japanese, English and Chinese

Our Green Procurement Standards are
deployed globally in Japanese, English
and Chinese

 The Alps Electric Group engages in “green” procurement to ensure that products supplied to customers are safe and environmentally friendly. It involves procuring materials and parts containing no hazardous substances from suppliers with established management systems. Suppliers are asked to follow our Green Procurement Standards and are assessed through “environmental corporate evaluations” looking at their environmental efforts, as well as “material evaluations” checking that substances specifically prohibited by the Alps Electric Group are not present in materials or parts. Evaluation data is shared through the Alps Green Procurement System (Green-AXIS), accessible worldwide via the Internet.
 The Green Procurement Standards are reviewed annually based on applicable legislative, regulatory or other changes. Annual reviews of materials and parts manufacturing bases are also carried out as part of ongoing improvements.


Green Procurement Standards[PDF]

Green Procurement Standards Appendix[PDF]

Response to Conflict Minerals

 Human rights violations by armed elements in the Democratic Republic of the Congo and neighboring countries and the intensification of conflict due to armed groups being financed through the sale of minerals obtained in these regions are major issues. In the United States, Section 1502 of the Dodd–Frank Wall Street Reform and Consumer Protection Act, which came into effect in January 2013, defines these minerals as “conflict minerals” and obligates corporations listed on American stock exchanges to disclose information related to the use of conflict minerals in their products with the ultimate goal of eradicating the use of minerals which are “financing conflict.”
 Alps Electric, while not obligated by the law, understands and agrees with the purpose of the law from a human rights perspective and intentionally avoids employing as materials in its products conflict minerals that are used to finance armed forces from the Democratic Republic of the Congo or neighboring countries who engage in inhumane conduct.

 Alps Electric also agrees with the stance of the Japan Electronics and Information Technology Industries Association (JEITA) and has been participating in the activities of JEITA's Responsible Minerals Trade Working Group since its establishment.

Response to Procurement Risk

 The Alps Electric Group has set up international procurement offices (IPOs) to carry out procurement activity at production bases in Japan, China, Korea, Malaysia, Mexico, Ireland, Germany, the Czech Republic and India (21 locations in nine countries), as well as in Taiwan and Hong Kong. Procurement entails obtaining at the right time the required volume of materials and parts which are superior in quality, cost, delivery and environmental performance. It is therefore essential that we procure from suppliers we can trust. For that reason, we make an effort to build trust-based relationships.
 The supply chain is also affected by natural disasters, accidents, labor disputes, bankruptcies and other occurrences, with extensive repercussions for not only procurement activities, but also operations like logistics. The Alps Electric Group regularly updates its supply chain database and is currently establishing structures for globally centralizing information and responding in a timely manner when procurement risks do eventuate.

 We hold business policy briefings for suppliers on an ongoing basis and during briefings request suppliers' cooperation with our response to procurement risks. We believe it impossible to deal with such risks without the support of suppliers and we will continue our efforts while strengthening that cooperation further.