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

* QCDES: (Quality, Cost, Delivery, Environment, Safety)

Material Purchasing Policy

  • Global procurement: Optimize procurement locations
  • Accelerated ordering: Develop purchasing system that incorporates AI
  • Active proposals: Double communication with business partners to promote value analysis* and production innovation

* Value analysis: A management technique to cut costs by analyzing components and materials used in products to ensure functionality without unnecessary costs.

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.

CSR Procurement Guidelines (31KB)
CSR Procurement Guidelines
CSR Procurement Guidelines

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 increased from 1,052 in 2021 to 1,162 in 2022.

2022

1,162 proposals
(2021: 1,052 proposals)

Environmental Consciousness

Throughout our supply chain, from design to sales, we strive to adhere to social norms and be environmentally conscious in order to create a sustainable society. On the environmental front, the switch to lead-free products under the European RoHS Directive, which we have been working on since 2020, has been postponed for some components due to the extension of the deadline for exempted items. However, some components that are being shipped to Europe are gradually being switched to lead-free products.