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Supply Chain Management

In-house Activities

In-house Activities

Instillation of OMRON Group Rules

To achieve the OMRON Principles, the OMRON Group established the OMRON Group Rules in fiscal 2015, requiring employees to comply strictly with these rules in their work. As for procurement, OMRON Group purchasing policies state that “OMRON group fulfills social responsibility by promoting comprehensive global sustainable procurements including environment as well as compliance with laws and regulations.” In conformance with these policies, OMRON Group Purchasing Rules were established to define necessary procedures.

Presently, efforts are made to instill these rules across the OMRON Group by sharing information with purchasing officers of all Group companies during their meetings or individually giving explanations to factory purchasing staff. The internal auditing department also conducts business audits periodically to maintain and enhance compliance with the OMRON Group Rules.

Initiatives

During fiscal 2019, OMRON conducted operational audits for purchasing departments at 13 locations globally (Japan: 6; China: 3; Asia/Pacific: 1; Americas: 1; Europe: 2).

Sites Audited for Purchasing Operations

Units: Number of sites
Region FY2016 FY2017 FY2018 FY2019
Japan
4 3 7 6
Korea
1 0 0 0
Greater China
3 5 1 3
Asia Pacific
2 1 2 1
Americas
6 3 5 1
Europe
2 0 0 2
total
18 12 15 13

Workshops for Buyers

Procurement Code of Conduct Training

As part of our efforts to encourage corporate ethics, we established the Procurement Code of Conduct, which provides rules for ethical behavior by purchase managers when conducting transactions with outside entities. We provide education through e-learning (video, practice tests) once a year to remind staff of this code of conduct.

Initiatives

During 2019, a total of 1,580 procurement staff across all global departments completed training based on designated materials.

Sustainable Procurement Study Session

In order to realize sustainable procurement, OMRON provides its purchasing staff with in-house workshops on human rights, labor, and other global social issues in supply chain.

Initiatives

In fiscal 2019, OMRON had workshops for staff members at headquarters’ purchasing department.

[Programs]
Session 1: Global sustainability trends and importance of sustainable procurement
Session 2: Sustainable procurement initiatives at OMRON, now and next

The workshops were given so that everyone at the department could have the same awareness of the importance of sustainable procurement as well as various risks in supply chain, consider how OMRON should respond to sustainable procurement requirements from the society and customers, and put the ideas into practice. By using a video conference system, regional purchasing officers in China joined the workshops as well.

Compliance Hotline

The OMRON Group has established a hotline to accept reports from suppliers on compliance-related problems involving OMRON purchasing departments, as well as their opinions, in order to ensure the strict maintenance of compliance in-house. The hotline is set up at an external law firm, so the identities of the hotline contacts will never be disclosed or leaked to third parties.

Initiatives

The compliance hotline has been in operation in Japan since fiscal 2013, and in Greater China since fiscal 2015.

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