Sustainable Supply Chain Management
The DMC Group established its Procurement Policy to specify our mission to purchase materials and services in consideration of the environment and society. We also established the Sustainability Procurement Guidelines to promote appropriate procurement throughout our supply chain with a priority on consideration for the environment and society by thoroughly familiarizing suppliers and partner companies with our commitment to realizing a sustainable society. We also provide questionnaires regarding Sustainability procurement to suppliers to supervise their approaches.
So that we can respond to significant changes in social demands moving forward, we plan to appropriately review the contents of the Sustainability Procurement Guidelines and questionnaires to ensure that all supplier companies are well informed and conduct internal training.
Management System & Operation
Procurement is managed by the Procurement Group and supervised by the Production Management Department Manager. When we consider new business transactions, the selection of partners is based on our Procurement Policy. In the primary assessment, each division assesses engineering capability, reliability, hazardous substances contained in materials and material performance in accordance with the evaluation and selection criteria specified by DMC Group. In the secondary assessment, the Purchase Group assesses the stability of supply, price, and Sustainability procurement questionnaire results to determine supplier qualifications. Existing suppliers are assessed over a wide range, including compliance, response to defects, and Sustainability approaches, to determine their continuing eligibility. We determine whether or not to continue transactions based on various aspects, including legal compliance, response to defects, and the status of Sustainability initiatives. The evaluation and selection criteria are also reviewed accordingly and spread to all employees to establish a system that ensures proper judgment throughout all group companies.
DMC follows the laws and regulations specified by each country, social norms, and corporate ethics, and conducts fair procurement activities to fulfill our social responsibility taking into account human rights, the global environment, and labor safety as we establish cooperative and trusting relationships with our employees and businesses for mutual growth.
Compliance with Laws, Regulations and Social Norms
DMC conducts procurement activities in accordance with laws, regulations and social norms both at home and abroad.
Fair and Equitable Business Transactions based on Economic Rationality
DMC thoroughly evaluates economic rationality such as quality, reliability, price, delivery date, and procurement period to conduct fair, equitable and transparent business transactions.
Ensuring Quality and Safety
DMC strives to maintain and improve quality and safety with suppliers to provide valuable products.
Human Rights Protection
DMC procurement activities respect human rights in accordance with our Human Rights Policy.
DMC strives to manufacture products containing fewer hazardous substances and conducts activities considering environmental conservation.
Request for agreements with our Sustainability Procurement Guidelines
We ask our suppliers to sign a Confirmation of Consent to our Sustainability Procurement Guidelines to ensure their implementation and compliance with the Guidelines. As of February 2022, we have acquired agreements from 35 existing supplier companies. In addition, from FY2022, new suppliers are now required to submit an agreement before conducting business.
Questionnaire on Sustainability Procurement
DMC works with its suppliers on procurement in consideration of the environment and regional society in accordance with the Procurement Policy and Sustainability Procurement Guidelines. DMC has monitored major Sustainability approaches by its suppliers and promotes activities through its Sustainability Procurement questionnaire based on the items shown on the right, aiming for the further promotion of Sustainability activities throughout our supply chain.
In FY2020, we did not conduct Sustainability procurement questionnaires due to COVID-19. However, to further promote Sustainability procurement approaches, in FY2021, we updated our Sustainability Procurement Guidelines and requested our major suppliers to agree to the Guidelines (agreement to the Confirmation of Consent). We continue working on the realization of a sustainable society with our suppliers in accordance with the Sustainability Procurement Guidelines.
- Safe and Sanitation
- Management System
Response to Conflict Minerals
DMC is committed to not using conflict minerals, minerals mined under conditions in which armed conflict, human rights abuse or environmental destruction occur, to prevent funds from flowing to armed groups. We procure the tin and gold used as raw materials in the manufacture of DMC touchscreens from conflict-free smelters such as CFSI*. If we find that our product contains conflict minerals, we take prompt corrective measures.
* CFSI: International conflict-free sourcing initiative
Management System & Operation
Tin and gold are essential to the manufacture of touchscreens. DMC established a system under the supervision of the Director & Production Management Division Manager designed to prevent the use of conflict minerals. We gather information on conflict minerals from all suppliers and require tin and gold to be procured from smelters whose products are certified conflict-free. We surveyed our 106 suppliers using the Conflict Mineral Reporting Template (CMRT) developed by the Responsible Business Alliance (RBA) and Global e-Sustainability Initiative (GeSI). The response rate was 98.1% in FY2021. Currently, no minerals have been identified as a source of funding for armed groups. Currently, no minerals have been identified as a source of funding for armed groups.