Material Procurement Information

3.Standard Flow of Transaction Procedures

First, for transactions with JR Kyushu, it is necessary to register as a supplier. After registration is completed, a transaction contract will be concluded for each individual procurement case.

(1)Flow of Supplier Registration Procedure

①Application for new business transaction

Prospective suppliers wishing to do business with JR Kyushu will need to complete the prescribed application form and submit it to us. For the application form, access:http://www.jrkyushu.co.jp/company/business/procurement/shinki.html（Japanese）. Required information includes: company name, contact person, business description, the amount of sales, and major production items (product line). For more details of required information, please refer to the application form. Please note that the application form should be filled out in Japanese.

②Receipt & check of application form

At this stage, we will check the submitted application form for any omissions or uncertainties. An incomplete application form will be returned to the applicant, who will be required to re-submit the application form or submit additional required documents. For inquiries about the registration procedure, please contact us in Japanese.

③Documentary screening (initial)

We will briefly examine the possibility and benefit of using the applicant’s product(s) based on the documentation submitted (including financial conditions and past track records). Except for a situation where there is no possibility of introducing the product(s), the application will move forward to the stage of quality/technology review.

④Quality/technology review (presentation)

For the application that passes the initial screening, we will conduct a review of product quality and technology. The applicant will be requested to come to JR Kyushu to provide a more detailed explanation to our staff in charge of technology.

⑤Quality/technology review (product testing, spec. adjustment meeting)

For serious consideration of the introduction of the product(s) presented in the review mentioned in the previous section, we may request the applicant to submit samples, so that we can perform quality checks or testing. To ensure compatibility between the products and our existing systems, the applicant may also be requested to have a preliminary meeting, in which detailed discussions will be made on whether specifications can be changed to meet our needs.

⑥Documentary screening (secondary)

For the goods used for railway business, stable long-term supply is essential. Based on submitted documents and samples, we will conduct a comprehensive examination of all or any of such factors as product quality, performance, sound management, technological capabilities, supply capabilities, accident response, after-sales services and support, and reliability of delivery, as stated in our Basic Procurement Policy. (http://www.jrkyushu.co.jp/company/business/procurement/kihon.html)

⑦Conclusion of basic transaction contract and supplier registration

When a continuous business relationship is expected, we will conclude a basic transaction contract with the applicant. After that, the applicant will be registered as a supplier of JR Kyushu. A supplier code will be issued to be used for future transactions with us. JR Kyushu has introduced an electronic procurement system, which we use to ask for estimates and place orders.