Principles of procurement activities
We conduct procurement activities based on the following principles:
- Engage in fair dealings as an equal partner
We do not unduly discriminate against any supplier by abusing our superior position or imposing unilateral conditions on the supplier. We engage in honest dealings with all suppliers by striving to maintain fair and just relationships and abiding by all applicable laws and contracts. We promote fair and open competition. To that end, we provide an equal business opportunity to and make a fair evaluation of all suppliers.
- Conduct business dealings with high integrity
We strive to prevent corruption within our supply chain by refusing to receive improper personal benefits or any other gain from suppliers. We respect the ideal of mutual benefit and are committed to the highest standards of business integrity. We strive to create a better partnership and to grow and develop with our suppliers by building mutual understanding and trust.
And, to ensure transparency within our supply chain, we are committed to making appropriate disclosures of information.
- Keep confidential information
We protect both personal and confidential information obtained in our dealings with suppliers. We never disclose this information, even to our own employees, unless there is a legitimate reason for knowing it.
Sustainability Embedded in procurement policy
With the rising interest of stakeholders in the topic of EGS(Environment, Social, Governance), sustainable promotion activities by enterprises and industry associations have gained significant momentum in recent years. Yokogawa Group has been working proactively by setting up sustainability promotion departments and publishing Group sustainability reports including its "Three goals". Our Sustainable Procurement Guidelines were made to promote procurement activities based on sustainability throughout the supply chain, including not only by the Yokogawa Group but also by Yokogawa suppliers.
Yokogawa Group is committed to achieving its “Three goals” through a collaborative approach within the group, including suppliers in the entire supply chain. We actively engage in sustainable procurement practices to address the following aspects: E: Environment - include initiatives to combat climate change/protect biodiversity, S: Social - We prioritize considerations related to human rights, G: Governance - the prevention of unfair competition, adherence to compliance standards.
Evaluation and Selection policy of suppliers
We evaluate and select our suppliers in a comprehensive manner by giving priority to the following criteria:
- Agreement to comply with our “Sustainable Procurement Guidelines”
- Compliance with business ethics, laws, and regulations and maintenance of a healthy business operation are allowing the establishment of a steady and cooperative relationship with customers.
- Ability to offer a world-class level of performance in terms of quality, delivery, cost, technology, response, and service.
- Ability to supply the required amount at the required time to adapt to our customers' delivery and quantity requirements changes.
- Have leading-edge technology for our supply of safe and outstanding products that meet our customers' requirements.
- Have an information security system for the strict control of confidential information obtained through dealings with Yokogawa Group companies.
- Management that requires consideration for ESG and human rights to the suppliers of our partners.
Supplier Registration flow
The below illustration is the flow of the Initiated Transactions.