Supplier Relations

As part of the Yokogawa Group's internal control, Yokogawa's management structure governs the overall business processes, including its relationship with customers and suppliers. For the sales and procurement processes in the supply chain, Yokogawa Group's "Group Sales Operations Code" and "Group Procurement Code" have been defined based on its Corporate Philosophy and Standards of Business Conduct, to ensure fair and equitable transactions. Yokogawa observes the local ordinances of the country and regions with whom we do business, and focuses on establishing a supply chain that considers environmental protection.

In 2008, the Yokogawa Group Supply Chain CSR Guideline, which is compliant with JEITA*, was created and published. In addition, Yokogawa's basic procurement policy, which is summarized in three points, is used as a set of principles to guide its every day operations. In 2009, a network of responsible parties of Yokogawa Group's sales and procurement processes was built as a foundation for all supply chain CSR activities.

1. Create an ethical, clear, and open corporate culture and establish ourselves as a company that can be trusted by society.
2. Promote socially responsible procurement activities throughout the supply chain, including not only the Yokogawa Group, but also the suppliers of Yokogawa.
3. Comprehensively evaluate and select suppliers, giving priority to our commitment to being a good corporate citizen.

Yokogawa strives to strengthen its partnership with its key suppliers, through regular exchanges with the supplier's management. In April 2010, Yokogawa invited 100 people from the suppliers' management to an informational meeting at its corporate headquarters to explain its procurement policy. After the corporate policy, business plan, and procurement strategies were explained, a trophy and a certificate of appreciation were awarded to the company recognized as the Yokogawa's best supplier from the previous year.

Yokogawa has launched a portal site connecting the suppliers and Yokogawa engineers to improve the quality of information and work efficiency in adopting and designing of parts. As a result, accurate information from the suppliers can be shared internally in a timely manner. In addition, because it follows the standard format specified by JEITA, the work efficiency for both the suppliers and Yokogawa has improved, from adopting to designing of parts.

*JEITA: Japan Electronics and Information Technology Industries Association