Implementing Effective Supply-Chain Management

Approach

A large number of companies are involved in the process from the manufacture to the supply of a product. Accordingly, it is considered important for a company to manage the overall supply chain instead of only the processes in which it is directly involved. To realize and maintain a sustainable supply chain, the Asahi Group has established the Asahi Group Basic Procurement Policies and the CSR Principles for Asahi Group Suppliers. We will build strong relationships of trust and long-term cooperative relationships with our suppliers to promote procurement activities with environmental and social considerations.

Asahi Group Basic Procurement Policies

(1) Placing first priority on food safety and securing good quality
  • We will place our first priority on food safety and promote procurement activities ensuring to offer products and services at an optimum price that reassures our customers.
(2) Ensuring thorough compliance
  • We will comply with all relevant laws and regulations as well as social norms, and act in accordance with high ethical standards.
  • We will in no way request  the Suppliers to provide any entertainment or gifts or force the Suppliers to make donations, and we will not receive any reward or gifts from the Suppliers.
(3) Environmental consciousness
  • We will engage in procurement activities friendly to the global environment and the local communities together with the Suppliers.
(4) Fair and just transactions
  • We will provide fair and just opportunities to the Suppliers both at home and abroad, regardless of the scale of a company.
  • We will select and determine the Suppliers by comprehensively evaluating not only quality, price, delivery date, and stable supply but also technological capabilities, attitudes to compliance, environmental consciousness, and other factors.
(5) Keeping information security
  • We will appropriately manage information and technologies provided in procurement activities, and limit discloses within our group.

CSR Principles for Asahi Group Suppliers

(1) Human Rights
  • Business partners should ensure that their working environments are safe and sanitary.
  • Business partners should eliminate forced labor as well as discrimination.
  • Business partners should abolish child labor effectively.
(2) Environment
  • Business partners should promote reduction of the use of natural resources, and conservation of energy and water.
  • Business partners should promote waste reduction and recycling.
  • Business partners should promote the development and spread of environmentally friendly technology.
(3) Compliance with Laws and Regulations
  • Business partners should comply with all relevant laws and regulations as well as social norms.
  • Business partners should comply with regulations relating to matters such as entertainment or gifts, and should work against corruption including bribery.
  • Business partners should maintain full confidentiality of trade information and technology.

Management System

At the Asahi Group, we have established the Procurement Section at Asahi Group Holdings, Ltd. as the section in charge of overseeing the procurement strategy of the Group overall. We thus engage in optimal procurement activities in coordination with Group companies. Policies and strategies proposed by the Procurement Section are notified to the overall Group and developed as specific initiatives in the procurement activities of Group companies.

To spread such policies and strategies throughout the Group and promote these activities in a Group-wide manner, we regularly hold Global Procurement Conferences and Group Procurement Section Conferences, which are attended by Group companies.
Persons in charge of procurement at the Procurement Section and Group companies are striving to improve their knowledge of procurement, including CSR procurement, through the acquisition of Certified Procurement Professional (CPP) qualifications by the Japan Management Association.

We have also established a Procurement Clean Line System, which enables our suppliers and parties wishing to become our suppliers to report incidents where employees of the Asahi Group act in a manner contrary to the Asahi Group Basic Procurement Policies, or when they are involved in activities that appear not to comply with the law or social ethics. With this system, we have established strong relationships of trust and long-term cooperative relationships with our suppliers. In 2017, no incidents were reported under this system.

Related Information

Goals

  • Refine the management system in supplier CSR procurement
  • Revise CSR procurement policies in accordance with the Asahi Group Philosophy by 2019

Main Results for FY2017

  • A total of 108 suppliers participated in the Asahi Group Basic Procurement Policy Workshop, in which we explain the Asahi Group's policies to the management of our suppliers.
  • A total of 45 suppliers participated in QA Meetings for Asahi Group suppliers, through which we work on quality improvement together with our material suppliers.
  • An on-site survey based on the responses to the Supplier CSR Survey was conducted at 13 suppliers.
  • Supplier evaluations (48 ingredient suppliers and 55 material suppliers)
  • Theoretical analysis and assessment of modern slavery risk related to major ingredients and materials procured by the Asahi Group (11 major ingredients and materials)

Going Forward

We will continue to take and enhance the above initiatives in 2019 and thereafter to build strong relationships of trust and long-term cooperative relationships with more of our suppliers.

Related Information