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Material Procurement Information

1.Basic Procurement Policy

Fundamental Approach to Procurement
We implement procurement in accordance with the following principles in order to realize a sustainable society through business activities.

  1. (1) Compliance with laws, regulations, and social norms
  2. (2) Provision of safe and secure products and services
  3. (3) Provision of safe and healthy work environments and implementation of appropriate labor management
  4. (4) Fair business administration, prevention of corruption, exclusion of anti-social forces
  5. (5) Respect for human rights and elimination of discrimination
  6. (6) Information disclosure and information management
  7. (7) Consideration for the environment
  8. In accordance with these fundamental ideas, we will conduct procurement activities with integrity.

(1)Procurement with the highest priority on maintaining safety

As a company with operations centered on the railway business, we place the highest priority on safety. In the procurement of materials, we will seek products and services that contribute to the maintenance and further improvement of safe and reliable transportation, without regard to whether the suppliers are located in Japan or overseas.

(2)Wide-ranging procurement from Japan and overseas

From an international perspective, we implement wide-ranging procurement activities, both in Japan and overseas. We disclose information, such as requirements for suppliers, selection standards, and procurement procedures, and we select suppliers that can provide superior products and services, without regard to whether they are located in Japan or overseas.

(3)Provision of fair and impartial transaction opportunities

In our procurement procedures, including advance qualification screening and selection procedures, we handle the implementation of screening, selection standards, testing, and other matters in an equal, fair, and impartial manner, without regard to whether the business partners are located in Japan or overseas. In selecting suppliers, we make evaluations in accordance with transparent procurement procedures and objective standards in such areas as quality, delivery deadlines, stable supply systems, accident response and after-sales service systems, and prices.

(4)Pursuit of products and services that contribute to management improvement

In the railway business, we are called on to maintain safe and reliable transportation. In addition, the competitive environment is highly challenging. Accordingly, in the procurement of materials we seek products and services that contribute to management improvement, such as those with advanced technical capabilities and superior cost performance. We aim to implement flexible procurement of higher-quality products at reasonable prices.

(5)Pursuit of business partners capable of ensuring continuous and timely supply

In order to maintain safe and reliable railway transportation, it is essential that the necessary products and services are delivered to us in a continuous, reliable, and timely manner. We seek suppliers that have established systems that can provide a stable supply of the products we need, over extended periods of time, without regard to whether they are located in Japan or overseas.

(6)Pursuit of suppliers that can accommodate various usage environments and needs

The products procured by us for the railway business are utilized in diverse settings and situations, including a variety of topographical conditions, weather conditions, and usage frequencies. Accordingly, we seek suppliers that can provide products with the optimal specifications and functions to meet needs that are not uniform, without regard to whether the suppliers are located in Japan or overseas.

(7)Pursuit of suppliers that can provide sufficient after-sales services

In order to ensure safe and reliable railway transportation over the long term, we need suppliers that can continue to supply materials and provide maintenance services, such as inspections, over extended periods of time. In addition, we seek suppliers that can adequately provide after-sales services in the event of any failure or problem, as well cooperation in fact-finding investigations in response to any problems.

(8)Establishment of business relationships that lead to mutual growth

We aim to establish business relationships that lead to mutual growth and development by enhancing communication with suppliers and by collaborating with suppliers on initiatives that contribute to continual improvements in products and enhancement of technical skills. We also work in cooperation with suppliers to build a robust supply chain that supports safe and reliable railway transportation.

(9)Fulfillment of social responsibility

We strictly observe laws, regulations, and social norms; fulfill our social responsibilities in such areas as human rights, health and safety, and environmental conservation; and conduct procurement activities with integrity. In addition, we work to prevent corruption and reject relationships with anti-social forces.

(10) Provision and updating of procurement information on the website

In order to implement wide-ranging procurement of superior products, we believe that it is important to increase the transparency of procurement activities and to provide procurement-related information to current suppliers and to potential suppliers that wish to do business with us. This information, which includes procurement procedures, screening and selection standards, and procurement results and future plans, is provided to suppliers in Japan and overseas. Accordingly, we post and regularly update related information on our website, such as the Basic Procurement Policy, What Is Required of Our Suppliers, Standard Flow of Transaction Procedures, Procurement Results, and Material Procurement Forecast Information. This information is provided in both Japanese and English.