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Material Procurement Information

1.Basic Procurement Policy

(1)Procurement with safety as the highest priority

We at Kyushu Railway Company (JR Kyushu), as a company providing railway services and related activities, designate safety as our top priority for our management. For material procurement, we will be committed to seeking goods and technologies, regardless of whether the supplier is Japanese or foreign, that contribute to ensuring and further promoting safe and reliable transportation services.

(2)Broad procurement regardless of whether domestic or foreign

We will engage in a broad range of procurement activities both in Japan and abroad, from an international perspective. We will seek business partners that supply excellent goods both in Japan and abroad by disclosing necessary information, including requirements for business partners, selection methods, and procurement procedures.

(3)Provision of fair and equitable transaction opportunities

Our procurement procedures, including prequalification and selection procedures, shall provide equal, fair and impartial treatment to companies, regardless of whether domestic or foreign, in terms of screening/selection criteria and tests. In selecting procurement sources, we will make fair and equitable evaluations and decisions based on objective standards, including quality, delivery deadlines, stable supply, accident response, after-sales services, and prices in transparent procurement procedures.

(4)Pursuit of goods that contribute to management improvement

Recognizing that safe and reliable transportation is essential in the railway business and that we are in a highly competitive environment, we will seek to procure goods that help us to improve our management, including those superior in terms of the quality of technology and cost. We also endeavor to acquire high quality goods at reasonable prices.

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

In order to maintain safe and reliable transportation, it is essential that necessary goods are delivered to us in a continuous, reliable and timely manner. From a long-term perspective, we will seek business partners, regardless of whether domestic or foreign, that have established a system that enables continuous and timely supply of the goods we need.

(6)Pursuit of business partners capable of responding to diverse usage environments and needs

Goods required by railway business are used in various environments, in terms of geographical and weather conditions as well as the frequency of use. We will seek business partners, regardless of whether domestic or foreign, who are capable of supplying goods that satisfy specifications and functional requirements tailored to diverse usage environments.

(7)Pursuit of business partners who provide sufficient after-sales services

In order to ensure safe and reliable railway transportation from a long-term perspective, it is essential that business partners should continue to provide post-sales services and support, including parts supply and inspection. We will seek business partners, both in Japan and abroad, who are capable of providing sufficient after-sales services and support in the event of any failure or problem in connection with supplied goods, as well as a prompt response to any problems, including cooperation in fact-finding investigations.

(8)Establishment of a business relationship that leads to mutual growth

We aim to build a business relationship that will contribute to mutual growth and development by promoting better communication with our business partners and working closely with them to continuously promote the improvement of product quality and technology. We also, with the cooperation of our business partners, endeavor to establish a robust supply chain system that enables us to maintain safe and reliable railway transportation.

(9)Fulfillment of social responsibility

With the aim of fulfilling corporate social responsibility, we will engage in procurement activities faithfully in compliance with relevant laws and regulations and in consideration of the protection of the global environment. We will have no relationship with anti-social forces or groups and expect our business partners to reject any relationships with such forces.

(10) Provision and update of website information on procurement

In order to procure higher quality and more reliable goods at reasonable prices, we recognize the importance of enhancing the transparency in the procurement activities and providing information on material procurement (such as procurement procedures, criteria for screening and selection, and past and planned procurement) to our current business partners and potential business partners who wish to do business with us.
We will continue to provide website information on procurement both in English and Japanese and update the information on a regular basis. The information includes “Basic Procurement Policy,” “What is required of Our Suppliers,” “Standard Flow of Transaction Procedures,” “Procurement Results” and “Material Procurement Forecast.”