Supply Chain Management

Basic Stance/Policy

THK’s daily operations are performed in accordance with our policy to manufacture products in the optimal location and to conduct our business and improve our technology in a way that meets the needs of our customers.

THK Basic Policy on Procurement

In order to continue to provide THK products that satisfy our customers, we establish good, healthy, and mutually beneficial relationships with our suppliers.

Activities
  1. Procurement practices emphasizing communication with suppliers. Evaluating and choosing suppliers with thorough consideration for QCDES*
  2. Fair and equitable dealings in compliance with all pertinent laws and social norms
  3. Efforts to minimize costs. Encouraging the active pursuit of cost-saving projects and value-analysis initiatives
  4. Pursuit of global procurement
  5. Implementation of a BCP (business continuity plan)
  6. Environmental consciousness through green procurement
  • * QCDES: (Quality, Cost, Delivery, Environment, Safety)

Material Purchasing Policy

  1. Global procurement: Optimize procurement locations
  2. Accelerated ordering: Develop purchasing system that incorporates AI
  3. Active proposals: Double communication with business partners to promote value analysis and production innovation
  • * VA: Stands for value analysis. A management technique to cut costs by analyzing components and materials used in products to ensure functionality without unnecessary costs.

THK’s Supply Chain

Figure

Supply Chain Management Structure

THK considers suppliers to be valuable partners for ensuring mutual growth. We share the common goal of continuing to provide customers with satisfying products, so we provide forums for sharing information about new technology, production methods, and materials; build collaborative frameworks; and promote product improvements. Furthermore, we exercise our social responsibility and environmental awareness by rejecting dealings with criminal organizations and promoting green procurement throughout our supply chain.

Activities and Results (Including Goals)

Establishing and Distributing CSR Procurement Guidelines

Based on our belief that efforts at every step of the supply chain are essential to the promotion of CSR activities, we distribute our CSR Procurement Guidelines to our suppliers and request that they actively engage in CSR activities.

Image
CSR Procurement Guidelines (Japanese version only)

Working with Suppliers

THK meets with suppliers to exchange technical information about processes in order to improve and refine both party’s techniques. Businesses in the THK Association actively conduct value analysis proposals relating to machining technology, and the number of proposals jumped dramatically from 467 in 2017 to 550 in 2018.

In 2018 550
(2017: 467)

Efforts to Alleviate Workload of Truckers

Due to the new system of accountability for freight owners* announced by the Ministry of Land, Infrastructure, Transport and Tourism in 2018, our distribution centers moved the time they stop shipping forward by one hour, from 4:00 p.m. to 3:00 p.m., in an effort to alleviate the workload of truckers. With the introduction of this new system, we have taken steps to limit the following types of behaviors that actively lead to violations:

  1. Constantly having truckers wait on shipments
  2. Specifying unreasonable arrival times
  3. Punishing truckers for unavoidable delays
  4. Asking truckers to violate weight regulations, etc.

As we promote our CSR activities, in addition to reflecting the voices of customers, we will also continue to implement activities that involve the entire supply chain, such as conducting CSR surveys of our suppliers.

  • * New system of accountability for freight owners:
    In accordance with Article 64 of the Motor Truck Transportation Business Act, in cases where administrative sanctions are imposed in response to a violation such as a truck transportation business operator’s transportation of excessive load or failure to prevent over-strained driving, when it is recognized that the violation is mainly attributable to the action of the freight owner, such as being under the direction of the freight owner, the Minister of Land, Infrastructure, Transport and Tourism shall recommend that the freight owner take appropriate measures to prevent the recurrence of the violation.

Communication with Suppliers

We require members of the THK Association, which comprises our business partners and main suppliers, to be familiar with our corporate policies and the THK Basic Policy on Procurement. We accomplish this by explaining these policies at a general meeting held at the headquarters and three other meetings held at various branches each year.

PAGE TOP