To offer new excitement and a more fulfilling life for people all over the world by continuing to deliver our unique, high-perfor-mance, high-quality products around the globe, procuring a diverse variety of quality parts and materials with a global perspec-tive becomes crucial. By proactively communicating with our suppliers and business partners, we develop trusting relationships and engage in Monozukuri based on a spirit of co-creation with uniquely Yamaha efforts that not only raise global competitive-ness but also earn the respect and appreciation of society and mutually raise the corporate value of all parties. Collaborating with Business Partners to Raise Our Respective Corporate Value and Competitiveness 54Increasing Growth, Profitability, and Robustness TogetherWe have devised a global procurement policy to guide our activities over the three years of the new Medium-Term Management Plan beginning in 2022. With our long-standing collaborative relation-ships with our business partners as a foundation, we aim to create new value while strengthening our respective corporate value and competitiveness. To that end, we have established three key areas of focus: growth, profitability, and robustness. In terms of growth, to achieve our Long-Term Vision for 2030 of “ART for Human Possibilities: Let’s strive for greater happiness,” we will work towards tackling a new field of growth by supporting Monozukuri through our procurement operations. We believe that it is important to cooperate with business partners in various fields of expertise in order to develop new technologies for CASE and other areas as well as create attractive new products. We share our medium- to long-term technical strategies with our business part-ners at an early stage so that we are both on the same page and can work together to carry out those strategies. We are continuing to tackle pursuits in new fields and collaborating with our business partners to strengthen competitiveness. we are carrying out activities in a collaborative style unique to Yamaha Motor. First, we visualize and share the strengths, weak-nesses, and issues our business partners face. Next, we carry out improvements to our business partners’ manufacturing sites and facilities according to our theoretical-value-based approach, and make use of our DX and Smart Factory technologies to create new value. These practices do not only cover cost reduction and value improvement; we also work with our business partners to contrib-ute toward achieving carbon neutrality and other initiatives. The ideas generated through these practices are incorporated into the upstream stages of new model development to improve existing products. By following this cycle, we are working to create new value and increase the corporate value of both Yamaha Motor and our business partners. We shared policies with business partners from 260 companies located in 14 countries at the previous Global Suppliers Conference, which was streamed online.In terms of profitability, in order to reinforce existing businesses, Creating a functional part for a product with business partners To ensure stable profits, we are carrying out measures to address various risks within our procurement operations. Since the COVID-19 pandemic began in 2020, there has been an ongoing risk of global supply networks becoming fragmented. Cases in which business partners are affected by disasters such as fires or floods, or being targeted in cyberattacks, constitute grave risks to the state of our operations. Our Procurement Center advises our business part-ners to put preventive measures in place before they are needed and visualizes supply chain information so that we are able to ascertain our business partners’ situation early on in an emergency. Additionally, having only a small number of suppliers can pose a significant risk, as we saw with the shortage of semiconductors and some other raw materials, so we are working to secure sufficient component stock for the long term. These efforts allow us to improve our resilience and ensure that we remain profitable. tions into various elements of the manufacturing process of the components and raw materials we purchase, including safety, quality, human rights, and environmental impact. For these activi-ties, it is important that we work with the entire supply chain and an essential undertaking for continuing our corporate activities in future. on a Quality First mindset. Safety and peace of mind are the top priority and we place these above all else to ensure that we never lose the trust of our clients.In terms of robustness, we are conducting retrospective investiga-Initiatives with our business partners have always been founded The environment surrounding our procurement operations is experiencing drastic change. To meet various societal expectations and support safe production practices, we share our policies with our major business partners around the world at the Global Suppliers Conference (GSC) and carry out collaborative activities to mutually raise our corporate value.Procurement
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