Procurement of Materials

Basic Procurement Policy

1. 1. Comply with pertinent laws, regulations, and social norms.
2. 2. Implement procurement activities that fully consider reducing our environmental impact when selecting procurement items and suppliers (including candidates, the same shall apply henceforth).
3. 3. Provide fair trade opportunities to suppliers.
4. 4. Carry out procurement activities based on mutual understanding and trust with our suppliers.

Supplier Selection Policy

Priority will be given to companies that meet the following six criteria when starting a transaction, and will also be given priority for ongoing transactions.

1. 1. In compliance with pertinent laws, regulations, social norms, etc., and emphasize consideration for human rights and the environment.
2. 2. Business operations are in sound condition.
3. 3. The quality, price and delivery time of materials, products, software and services to be supplied to TOSEI are all proper and appropriate.
4. 4. Possess the capacity to provide stable and continuous supply and demonstrate flexibility when responding to fluctuations in supply and demand.
5. 5. Possess the technical ability to contribute to TOSEI products.
6. 6. Able to continue supply even in the event of an unforeseen disaster, etc.

Request to our suppliers

As TOSEI operates in the development of a wide range of products on a global scale, it is necessary for us to consider the needs of our customers when procuring materials, products, software, and services. Therefore, we request all suppliers abide by the below. We would also like to request that our suppliers understand and implement TOSEI's Procurement Policy.

1. 1. Compliance with laws and social norms
   We ask our suppliers to comply with the relevant laws, regulations and social norms of the countries and regions in which they conduct their business activities.
   • ・We will comply with all relevant laws and regulations (antitrust laws, commercial laws, subcontracting laws, foreign exchange laws, personal information protection laws, copyright laws, etc. in each country and region).
   • ・Bribery of any interested party (illegal gifts, payments, consideration, monetary or non-monetary benefits) is prohibited.
2. 2. Consideration for human rights and occupational health and safety
   We ask our suppliers to respect basic human rights in their business activities and to strive to achieve a safe and clean work environment. We also ask for your understanding and cooperation with the TOSEI Conflict Minerals Response Policy.
   • ・Prohibition of forced labor, inhumane treatment (including slavery), human trafficking, child labor, and discrimination.
   • ・Appropriate wage payment, management of working hours, and commitment to ensuring that all employees have the right to organize.
   • ・Realization of a safe and clean working environment.
3. 3. Consideration for the environment
   With the idea of passing on our "irreplaceable" environment to the next generation in a healthy state, we ask you to actively engage in activities to promote the production of environmentally friendly products.
   • ・Promote the development of an ISO 14001-compliant environmental protection system and the acquisition of external certifications.
   • ・Work to reduce the use of hazardous chemical substances and procure environmentally friendly materials and components.
   • ・Promote and implement environmental conservation activities (formulation of environmental policies, maintenance of systems, implementation of education, etc.).
4. 4. Continuation of sound business management
   It is important that businesses maintain sound operating conditions in order to carry out ongoing transactions. Therefore, we would request disclosure of the management policies and business conditions (including financial conditions) of our suppliers.
5. 5. Ensure excellent quality
   In order to maintain and improve the quality of the products we provide to our customers, we strive to maintain a quality assurance system that complies with the ISO9000 family and to obtain external certifications.
   • ・Compliance with safety standards (CCC, JIS, Electrical Safety Law, UL, CE marking, etc.) in each country and region.
   • ・Continuous supply of materials, products, software, and services that satisfy the specifications and quality required by TOSEI.
6. 6. Offer products and services at reasonable prices
   In order to provide our customers with products that satisfy economically, we ask for provisions of materials, products, software, and services at competitive prices, and to continuously promote price reduction efforts.
7. 7. Ensure reliable delivery and establishment of a stable supply system
   In order to ensure a continuous supply of products to customers and to meet the demands of rapid changes in supply and demand, we need to secure reliable deadlines and establish a stable, continuous, and flexible supply system for materials, products, software, and services.
8. 8. Improve technical capabilities
   We ask suppliers to continuously improve their technological capacity in order to provide safe and superior products based on customer needs.
9. 9. Continuity of supply in the event of an unforeseen disaster
   In the event of an unforeseen disaster, etc., we ask for suppliers' cooperation in maintaining supply while sharing supply chain information with the TOSEI Group including their own suppliers, in addition to cooperation in risk management activities during normal times.