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 CSR 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 CSR procurement to suppliers to supervise their approaches.
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 CSR procurement questionnaire results to determine supplier qualifications. Existing suppliers are assessed over a wide range, including compliance, response to defects, and CSR approaches, to determine their continuing eligibility. 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.
Questionnaire on CSR Procurement
DMC works with its suppliers on procurement in consideration of the environment and regional society in accordance with the Procurement Policy and CSR Procurement Guidelines. DMC monitors major CSR approaches by its suppliers and promotes activities through its CSR Procurement questionnaire based on the items shown on the right, aiming for the further promotion of CSR activities throughout our supply chain. In FY2020, we did not conduct CSR procurement questionnaires due to COVID-19. However, to further promote CSR procurement approaches, we are planning to update the CSR Procurement Guidelines and ask major suppliers to confirm their consent to adhere to the updated guidelines (Confirmation of Consent). We continue working on the realization of a sustainable society with our suppliers in accordance with the CSR Procurement Guidelines.
- Safe and Sanitation
- Management System
Work Environment Safety
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 Systems & Operations
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 103 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 97.1% in FY2020.