Supply Chain Management
The DMC Group establishes cooperative relationships with suppliers throughout the world and pursues CSR procurement in consideration of the environment and the community to realize a sustainable society.
The DMC Group established its Procurement Policy to specify our mission to purchase materials and services in consideration of the environment and society.
CSR Procurement
Procurement Policy
DMC follows the laws and regulations specified by each country, social norms, and corporate ethics, and conducts fair procurement activities to fulfill our social responsibility taking into account human rights, the global environment, and labor safety as we establish cooperative and trusting relationships with our employees and businesses for mutual growth.
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Compliance with Laws, Regulations and Social Norms
DMC conducts procurement activities in accordance with laws, regulations and social norms both at home and abroad.
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Fair and Equitable Business Transactions based on Economic Rationality
DMC thoroughly evaluates economic rationality such as quality, reliability, price, delivery date, and procurement period to conduct fair, equitable and transparent business transactions.
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Ensuring Quality and Safety
DMC strives to maintain and improve quality and safety with suppliers to provide valuable products.
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Human Rights Protection
DMC procurement activities respect human rights in accordance with our Human Rights Policy.
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Environmental Conservation
DMC strives to manufacture products containing fewer hazardous substances and conducts activities considering environmental conservation.
Management System & Operation
Management System & Operation Procurement activities are overseen by the Procurement Group headed by the Production Management Division Manager, who conducts supply chain management based on a Procurement Policy that includes social aspects such as the suppliers’ environment and human rights. In addition to conducting risk analysis based on procurement items and the regions from which they are sourced, the evaluation and selection criteria for suppliers are also reviewed accordingly and spread to all employees to establish a system that ensures proper judgment throughout all group companies.
- 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 conducts an assessment based on supply stability and price, and determines supplier qualifications after taking into account CSR procurement questionnaire results.
- Concludes transaction contract.
- Decisions are made based on various aspects, including legal compliance, response to defects, and the status of CSR initiatives.
CSR Procurement Guidelines
We also established the CSR 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, and by distributing the guidelines to them. In FY2021, with the aim of strengthening collaboration with suppliers to promote sustainability throughout the supply chain, the revised CSR Procurement Guidelines require that suppliers agree to comply with the Guidelines.
Request for Agreements with our CSR Procurement Guidelines
We ask our suppliers to sign a Confirmation of Consent to our CSR Procurement Guidelines to ensure compliance with the Guidelines. As of the end of FY2023, we have obtained agreements from 34 suppliers that account for 41.6% of our total procurement.
Questionnaire Items on CSR Procurement
DMC has monitored CSR approaches by its suppliers and promotes activities through its CSR Procurement questionnaire based on the items shown below, aiming for the further promotion of CSR activities throughout our supply chain.
- Labor
- Health and Safety
- Environment
- Ethics
- Management System
Training for Purchasing Division
To promote CSR procurement throughout the supply chain, it is vital that employees in the internal purchasing division are aware of sustainability issues in the supply chain. In FY2024, we held CSR Procurement training for the Purchasing Division through sustainability report workshops and internal training sessions (attendance rate 100%). As part of internal education, we also conduct study sessions on environmental regulations, and for the Procurement Divisions, we provide opportunities to learn about revisions to laws related to green procurement and the handling of hazardous substances.
Taking Responsibility in Our Response to Conflict Minerals
DMC is committed to not using conflict minerals, minerals mined under conditions in which armed conflict, human rights abuse or environmental destruction occur, to prevent funds from flowing to armed groups. We procure the tin and gold used as raw materials in the manufacture of DMC touchscreens from conflict-free smelters such as CFSI*. If we find that our product contains conflict minerals, we take prompt corrective measures. *CFSI: International conflict-free sourcing initiative
Management System & Operation
Tin and gold are essential to the manufacture of touchscreens. DMC established a system under the supervision of the Director & Standards Management Office Manager designed to prevent the use of conflict minerals. We gather information on conflict minerals from all suppliers and require tin and gold to be procured from smelters whose products are certified conflict-free. We surveyed our 108 suppliers using the Conflict Mineral Reporting Template (CMRT) developed by the Responsible Business Alliance (RBA) and Global e-Sustainability Initiative (GeSI). The response rate was 99.1% (106 suppliers) in FY2024. Unit products are investigated on a case-by-case basis in accordance with customer requests, and no minerals have been identified as a source of funding for armed groups for both our unit and touchscreen products.