A global procurement and sales network based on a spirit of cooperation and fairness
Two Policies Underpinning Procurement
As a Kando Creating Company, Yamaha Motor provides new excitement and a more fulfilling life for people all over the world, delivering unique, highly functional, high-quality products for use on land, on water, and in the air. To continue to do and build upon this, we consider it essential to take a broad, global view for our procurement of many types of high-quality parts and materials.
This is the thinking underlying our Basic Purchasing Policies, in which Yamaha Motor commits to “conduct fair trading, based on trust and cooperation, and to constantly strive to build better relationships with suppliers through activities to improve quality, price, delivery times, and other factors.” We have also implemented the policies in the five areas of an open door policy, just/fair trade, compliance/non-disclosure, respect to global environment, and mutual trust/prosperity. The Basic Purchasing Policies are based on our CSR Procurement Policies, which state, “The Yamaha Group builds trust with its suppliers through positive communication, and strives to realize mutual prosperity.”
Structure for Promoting Policy Development
The Fair Trading Committee is the organization responsible for ensuring that the Basic Purchasing Policies and the CSR Procurement Policies are adhered to and reflected in our procurement activities. The committee is chaired by the Senior Executive Officer entrusted with that authority by the Company’s President and Chief Executive Officer.
In addition to auditing legal and regulatory compliance, the Fair Trading Committee receives reports and deliberates issues regarding current circumstances, and gives instructions for the implementation of its decisions based on the principle of mutual prosperity with suppliers. These decisions are then translated into specific measures by the Fair Trading Promotion Committee, and all points of procurement are made thoroughly aware of these measures as Companywide policies. In addition, a Global Suppliers Conference is held annually, bringing together suppliers from around the world, and these conference and training programs held in conjunction with various events help to ensure a thorough understanding of these policies.
Promoting Sustainability Throughout the Entire Supply Chain
Under the Yamaha Motor Group’s Basic Policies of CSR, we expect our business partners to support the intent of the policies and to act accordingly. To have suppliers engage in sustainability activities that enable them to respond appropriately to the requests and expectations of society, our CSR Guideline for Suppliers informs our suppliers around the world of our policies with regard to issues including safety and quality, human rights and work environment, consideration for the environment, risk management, and compliance, to promote sustainability activities throughout the entire supply chain.
From 2019, the basic form of the items in the self-check sheet attached to the guideline has been made more detailed, in an effort to facilitate effective self-diagnosis. In addition, given that risks differ by country, regional risk assessments are also carried out.
Specific environmental activities are covered in the Green Procurement Guideline, and cover ways in which Yamaha Motor works with its suppliers in areas like managing and reducing environmentally hazardous substances and the efficient use of resources and energy. With regard to parts used in products, from 2018 uniform information on chemical substances as determined by the automobile industry is included in the Yamaha Motor Technical Standards, to inform suppliers and ensure their thorough compliance.
In addition, the Basic Purchasing Contract that we conclude individually with each supplier guarantees legal and regulatory compliance by requesting that suppliers “comply with related laws and regulations, directives, and other guidelines.”
Addressing Procurement Risk
Based on a spirit of mutual trust and mutual prosperity, Yamaha Motor strives to prevent the occurrence and minimize the impact of events related to risks at business partners, including natural disasters, quality problems, and management issues.
With regard to management issues and quality problems, business partners are monitored annually by headquarters, which produces an evaluation of the partner in a total package that covers both business continuity planning and the non-use of environmentally harmful materials. Based on this evaluation, corrective measures are put in place if necessary, and the progress of those measures is confirmed.
Working Together on “Procurement for Engineering, Manufacturing and Marketing”
In our interaction with the supply chain, we do not simply procure by purchasing; we emphasize procurement for comprehensive engineering, manufacturing and marketing by working with suppliers so that procurement incorporates both cost and quality.
An example of these activities is the implementation of “theoretical-value-based production” with suppliers. This does not simply mean demanding cost reductions, but instead involves analyzing the absolute value of production activities together with suppliers, and then working to find more ways to improve cost competitiveness. In order to promote these activities, Yamaha Motor has trained some employees to serve as “theoretical-value instructors” at suppliers. We are currently expanding the application of “theoretical value” beyond manufacturing processes to cover all activities related to procurement as well. We are also training supervisors at suppliers to ensure that all suppliers’ employees thoroughly understand these policies.
Activities at Dealerships
As our contact point with customers around the world, dealerships play an important role in conveying Yamaha’s “next Kando.” By strengthening relationships with dealers through regularly held dealer meetings and activities to promote safe driving and support local communities, the Yamaha Motor Group is building a sales network that provides common value.