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Relationships with Suppliers

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Procurement Policy

We work hard to build and maintain symbiotic relationships based on mutual trust, and this is achieved by dealing in good faith as an equal with each supplier, regardless of nationality or company size. We carry out material procurement activities in compliance with FURUNO's Green Procurement Guidelines, while stressing product development taking into account the environment (E) in addition to quality, cost, and delivery time (QCD).

Fundamental Principle for Procurement

(1) Observance of ethics for procurement activities

We strive to maintain observance of related laws and regulations both domestic and international as well as "FURUNO Group Code of Conduct". In order to conduct healthy procurement activities, we are determined to refrain from receiving any personal benefit, business entertainment or gift that are beyond a social norm from the partner companies both existing and prospective.

(2) Fair conduct of business activities

We are determined to provide any companies irrespective of their nationalities and business scales with equal business opportunities, and we conduct fair evaluation of prospective partner companies, solely based upon transparent criteria based upon logic.

(3) Harmonious co-existence with the partner companies

We are determined to deal with the partner companies on the equal basis with utmost sincerity irrespective of their nationalities and business scales, and we strive to establish and maintain the business relations based upon mutual trust with the partner companies.

(4) Pursuit for optimum procurement environment

In order to pursue to conduct optimum procurement activities both domestic and international, we strive to promote procurement activities with the vision to achieve enhanced Quality, Cost performance and swifter Delivery time, while taking into our consideration the Environmental conservation.

(5) Implementation of Corporate Social Responsibility (CSR)

With close cooperation with our partner companies, we strive to fulfil the corporate social responsibility of the FURUNO group throughout our supply chain.

Criteria for Selection of the Partner Companies

(1) Business principle

The partner companies are to run and conduct healthy business activities while taking into the consideration the compliance and goodness of the environment.

(2) Optimization of procurement activities

The partner companies are to live up to the standards FURUNO sets in terms of quality, cost, delivery time and environmental conservation.

(3) Stable supply of the materials

The partner companies are to be fully capable of supplying the materials based upon our production time frame as well as order placement, and the management system to facilitate stable supply of the materials should be in place.

(4) Technical expertise

The partner companies are to possess ample technical expertise that contributes to enhancement of performance, quality and cost competitiveness.

(5) Information management capability

The partner companies are to have information management system in place so that appropriate use of personal information, classified information and any other information deemed necessary for business activities be maintained.

Efforts for Green Procurement

Public interest in preservation of the global environment has been growing in recent years, and the European Union has initiated reinforcing environmental regulations with the enforcement of WEEE Directive (The Waste Electrical and Electronic Equipment Directive) and RoHS Directive (Restriction of Hazardous Substances Directive), for instance. In 2004, FURUNO established the "Green Procurement Standards for Parts and Materials" in order to fulfill our social responsibility in terms of environmental protection as well as compliance with existing regulations. Thenceforward, we have been implementing procurement activities based upon the principle of environmental protection, putting primary focus upon any chemical substances contained in the parts and materials of our products.

Thenceforward, we have been implementing procurement activities based upon the principle of environmental protection, putting primary focus upon any chemical substances contained in the parts and materials of our products. It would be our pleasure if our valued suppliers could kindly countenance our vision of environmental protection and cooperate with us in pursuing that goal.

Green Procurement Guidelines

Promotion of CSR Activities

Image of Promotion of CSR Activities

In order to maintain good partnerships with procurement sources, manufacturing subcontractors and sales representative agents, both inside and outside Japan, we are fully committed to fair trading based on the FURUNO Group Code of Conduct.
Selection of suppliers is carried out based on fair examination in accordance with our Criteria for Selection of the Partner Companies, and we work hard to build and maintain sound business relationships

FURUNO Group's Approach to Conflict Minerals

Section 1502 of the "Dodd-Frank Wall Street Reform and Consumer Protection Act" signed into law in the USA in July 2010 requires companies listed in the USA to disclose certain information regarding conflict minerals, including the extent to which they use conflict minerals originating in the Democratic Republic of the Congo or adjoining countries in their products.
To continue to be socially responsible with respect to this issue, we are taking steps to avoid the use of Conflict Minerals includes tantalum, tin, gold, tungsten and other minerals, the proceeds from which could finance armed groups.
We ask for the understanding of our partner companies and their cooperation with our surveys.