Sustainable Supply Chain Management | Touchscreen specialist manufacturer DMC

The DMC Group established its Procurement Policy to specify our mission to purchase materials and services in consideration of the environment and society. We also established the Sustainability Procurement Guidelines to promote appropriate procurement throughout our supply chain with a priority on consideration for the environment and society by thoroughly familiarizing suppliers and partner companies with our commitment to realizing a sustainable society. We also provide questionnaires regarding Sustainability procurement to suppliers to supervise their approaches.

So that we can respond to significant changes in social demands moving forward, we plan to appropriately review the contents of the Sustainability Procurement Guidelines and questionnaires to ensure that all supplier companies are well informed and conduct internal training.

Procurement is managed by the Procurement Group and supervised by the Production Management Department Manager. When we consider new business transactions, the selection of partners is based on our Procurement Policy. In the primary assessment, each division assesses engineering capability, reliability, hazardous substances contained in materials and material performance in accordance with the evaluation and selection criteria specified by DMC Group. In the secondary assessment, the Purchase Group assesses the stability of supply, price, and Sustainability procurement questionnaire results to determine supplier qualifications. Existing suppliers are assessed over a wide range, including compliance, response to defects, and Sustainability approaches, to determine their continuing eligibility. We determine whether or not to continue transactions based on various aspects, including legal compliance, response to defects, and the status of Sustainability initiatives. The evaluation and selection criteria are also reviewed accordingly and spread to all employees to establish a system that ensures proper judgment throughout all group companies.

We ask our suppliers to sign a Confirmation of Consent to our Sustainability Procurement Guidelines to ensure their implementation and compliance with the Guidelines. As of February 2022, we have acquired agreements from 35 existing supplier companies. In addition, from FY2022, new suppliers are now required to submit an agreement before conducting business.

DMC works with its suppliers on procurement in consideration of the environment and regional society in accordance with the Procurement Policy and Sustainability Procurement Guidelines. DMC has monitored major Sustainability approaches by its suppliers and promotes activities through its Sustainability Procurement questionnaire based on the items shown on the right, aiming for the further promotion of Sustainability activities throughout our supply chain.

In FY2020, we did not conduct Sustainability procurement questionnaires due to COVID-19. However, to further promote Sustainability procurement approaches, in FY2021, we updated our Sustainability Procurement Guidelines and requested our major suppliers to agree to the Guidelines (agreement to the Confirmation of Consent). We continue working on the realization of a sustainable society with our suppliers in accordance with the Sustainability Procurement Guidelines.