Stable Procurement of Raw Materials
Crop failure due to climate change and disruption of the supply chain due to natural disasters have a major impact on stable procurement of sustainably produced raw materials. As a response to these procurement risks, we strive to build a structure for stable procurement of raw materials under normal conditions.
Basic Purchasing Policy
In 2010, Fuji Oil Co., Ltd. formulated the Basic Purchasing Policy, in accordance with which we conduct all procurement activities.
Fulfill the responsibility to supply products to stakeholders by strengthening resilience to risks such as climate change and ensuring stable procurement.
The following are ongoing measures.
- Increase in the number of production areas
- Purchase from multiple suppliers
Response to procurement risks due to climate change
Global warming will bring higher temperatures, a rise in sea levels and changes in precipitation patterns; resulting in increased frequency of extreme weather events such as floods, droughts and heat waves.
Our Group uses agricultural products as raw materials, therefore these climate changes are likely to affect our supply and demand of agricultural products, and therefore pose a significant threat to our stable procurement of raw materials. ,. .To prepare for such risks, we promote the procurement of raw materials from multiple sources and suppliers, in addition, we secure raw materials by concluding long-term contracts with suppliers who ensure a stable supply.
Response to the risk of procurement stoppage due to large-scale disasters
It is important to ensure business continuity for the entire supply chain in the event of a large earthquake or other natural disaster. As countermeasure to the risk of delays in raw material supply due to disasters, Fuji Oil Group companies in Japan confirm the response systems of their suppliers through questionnaire-based surveys.
In FY 2018, based on the results of questionnaire surveys, we worked in cooperation with suppliers to ensure business continuity in the supply chain, by taking BCP*-related measures (securing multiple production sites, storing goods in multiple locations, etc.).
*BCP：Business Continuity Planning
CSR Procurement Guidelines and supplier surveys
CSR Procurement Guidelines
We believe that cooperation with business partners is essential to achieve sustainable procurement. For this reason, we drawn up and announced our CSR Procurement Guidelines (2nd Edition), which includes a list of matters requested of suppliers by four group companies in Japan – Fuji Oil Co., Ltd., TORAKU FOODS CO., LTD., FUJI FRESH FOODS CO., LTD., , and OMU MILK PRODUCTS CO., LTD.
For information on responding to procurement risks due to climate change and large-scale disasters, refer to the "Effective Risk Management" section.
Conducting supplier surveys to promote stable procurement
To ensure that procurement is undertaken in accordance with the CSR Procurement Guidelines (second edition), we explain the Guidelines to our business partners (manufacturers and trading companies) and conduct questionnaire surveys. In FY 2018, we held briefing sessions to explain our procurement policies to our suppliers, we evaluated suppliers based on the questionnaire results, and visited them to perform on-site audits and provide support for improvement.
We will maintain close communication with suppliers to achieve the stable procurement of safe, reliable and sustainable raw materials.