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Supply Management Policies and Systems

Supply Management Policies and Systems

  • Supply Management Policies and Systems - Overview

    Kyocera International, Inc. (KII) has an established its Supply Management Policies to ensure that transactions with our business associates and suppliers are carried out fairly, transparently and in line with all legal requirements. The KII Supply Management Team works together with all business associates and suppliers to implement fair business practices.

    The Management Rationale of the Kyocera Corporation and KII is: "To provide opportunities for the material and intellectual growth of all our employees, and through our joint efforts, contribute to the advancement of society and humankind." We aim to realize this rationale by committing ourselves to the implementation of fair business activities in our supply chains. The Kyocera Corporation and KII believe that the mutual prosperity of the entire supply chain can only be realized if all companies in the chain work together to meet the demands of society. To this end, KII actively communicates with business partners and focuses on building partnerships based on mutual trust, ethics and the highest of business principles.

  • Basic Supply Management Policy

    KII Supply Management will implement fair and transparent business policies, practices and processes that promote and support Kyocera's Corporate Philosophy and its Corporate Social Responsibilities (CSR) Guidelines, while also following all legal and governmental requirements. We will implement and adhere to programs and initiatives such as; KII's Code of Conduct, the RBA Code of Conduct, KII's Supplier Code of Conduct, KII's CSR Supplier Guidelines, Governmental FARs/DFARs Requirements, KII's Human Trafficking Policy, and Environmental Requirements such as REACH, RoHS, and Conflict Minerals.

    KII's Supply Management Team works to secure a stable supply of necessary raw materials and services along with continuous cost reductions that contribute to KII's profitability, while also resolving daily, tactical supply issues."

    Cost Reductions gained by Supply Management enable development of competitive products, leading to an increase of sales and profits.

    A stable supply of good and services, secured by all-around risk management, enables stable production, contributing to increased sales and profits for KII and its suppliers.

    Leadership and ownership for resolving multiple daily issues to accomplish the mission of Corporate Purchasing Group shall be performed by each member of Supply Management, keeping KII on track to meet or exceed its goals.

  • Supplier Selection Policy

    We select our suppliers based on the following principles:

    • Understanding and embracing of KII's basic corporate philosophies.
    • Supplier's own corporate philosophies basically being in line with KII's.
    • Supplier must be appropriate and stable in terms of size and finances, aiming to continually improve its management, its technical capabilities and its manufacturing performance.
    • Supplier must have overall excellence in quality, price, delivery time, and service responsiveness.
    • Supplier be active in global environmental conservation activities and embracing KII's CSR Procurement Guidelines.
    • Supplier must accept and comply with KII's Code of Conduct for its suppliers.

    KII designates certain suppliers as Approved Suppliers and Critical Suppliers (referenced as Key Suppliers) and asks them to respond to a regular KII CSR survey which includes Labor, Environmental, Health and Safety, BCP, Conflict Minerals, Ethics and Supply Chain.

  • Promoting CSR in the Supply Chain

    KII works together with its suppliers to promote CSR activities in order to fulfill our social responsibilities such as human rights, labor, and environmental protection. KII has established the KII CSR Procurement Guidelines to appropriately address important CSR issues throughout our supply chain, also including responsible mineral procurement, respect for human rights, and the formulation of a BCP for the prompt restoration and continuation of business operations in the event of a disaster. Based on these guidelines, we conduct regular surveys of our suppliers' CSR activities, including those of our overseas suppliers. We place a particular focus on human rights due diligence in accordance with the Kyocera Group Human Rights Policy.

    KII's Supply Chain CSR Guidelines can be found [here].

  • KII Supply Chain Risk Evaluation

    KII performs a Risk Evaluation of its key suppliers on a regular basis. This evaluation includes a perspective and evaluation of their CSR replies in the follow areas; Labor, Environmental, Health and Safety, BCP, Conflict Minerals, Ethics and Supply Chain. Suppliers with poor scorings or no improvements in these categories are considered higher risk. After our review of the CSR Survey replies, we may provide feedback on the survey results to suppliers who we have been determined to be higher risk or those which are showing insufficient improvements. If we can ascertain the reasons behind the lack of effort are due to misunderstandings, we explain the CSR survey again and request that the supplier make improvements. We may also choose to disqualify that vendor.

    In addition, our Key Suppliers are also evaluated on these risk elements:

    1. Sole Source
    2. Single Sourced
    3. Financial Risk
    4. Capacity constraints
    5. Market Conditions
    6. Geographical/Geopolitical Risk
    7. No leverage
    8. M&A/New Management
    9. EOL
    10. Laws & Regulations

  • KII Business Continuity Policy

    KII's BCP Policy is to require that each of its suppliers establish policies, programs and procedures for the swift restoration and restart of their business following any event that disrupts their supply of products or services. Developing a Business Continuity Plan is a vital business process that will aid in ensuring a continuous supply of products and/or services to KII and its suppliers' other customers. The main objective of our suppliers' BCP programs will be to increase the resilience of their businesses which should also increase their long-term profitability and viability. It will also provide them with strategic advantages. Their BCP should include the integration of any existing plans they may already have in place for crisis responses and IT recovery plans. We also require that our suppliers flow the requirement for a BCP down to their suppliers as well. KII will include survey questions in its CSR Survey on the status of its suppliers' BCP programs and the quality or existence of BCP Planning will affect our evaluation of our suppliers.

    It is our objective to use these website pages to present a broad overview of BCP principles and also direct you to some potential resources in case you don't already have a plan.


    When launching a BCP project, it is important to adhere to some major principles in order to achieve sustained success.

    1. Ensure Top Management Involvement and Commitment
      1. Demonstrate this through actions such as management's participation in program development, training exercises and program reviews.
      2. Management must have a working knowledge of the BC Planning Process and objectives.
      3. Management must actively and personally promote the process.

    2. Reviews and updates of the plan must be performed on a regular basis
      1. There must be at least a yearly status and update
      2. There must be a person assigned to review the plan
      3. The BC Plan must be a Controlled Document
      4. The BC Plan must be reviewed by others

    3. Test your plan in a variety of ways
      1. Test by including Tabletop Exercises
      2. When possible, include exercises in the actual workspace such as the production floor or sales office
      3. Exercises should include multiple/interactive scenarios
      4. Utilize an observation group
      5. Collect comments from all and implement
        improvements in both your plan and your exercises

    4. Establish the Hierarchy and Organizational Structure
      1. Determine the order of engagement and method of communicating as the various stages of the plan both escalate and de-escalate
      2. Ensure each department/organization understands their role and is committed to their role
    5. Include your Crisis Management Plans in your Business Continuity Plan
    6. Establish your Recovery Time Objectives (RTO) and Recovery Point Objectives
    7. Keep your BCP highly and constantly visible. It should become a part of your company's DNA.
    8. Business interruptions can occur in any group within the company. Therefore, all groups must be versed in BCP and have their plan that contributes to the whole. This includes, but isn't limited to: All Parts of Production, Sales, Finance, Strategic, Financial, Operational, IT, and Technical.


    The general steps in developing and implementing your BCP should be:

    1. Program Initiation: Kick off by Executive Management
    2. Awareness Workshop: Internal or External Resources.
    3. Analyze Vulnerabilities and Risks: Identify the risks, threats, and vulnerabilities that could disrupt business operations.
    4. Develop your Business Impact Analysis (BIA)
    5. Develop Business Continuity Strategies: Develop strategies to respond to and recover from disruptions.
    6. Establish Business Continuity Procedures: Develop procedures for responding to and recovering from disruptions.
    7. Create Business Continuity Plan: Create a comprehensive plan that outlines the steps to be taken in the event of a disruption.
    8. Test and Review Plan: Test the plan and regularly review it to ensure it is up-to-date and reflects current business operations.
    9. Train Employees: Provide employees with information about the plan and educate them on the steps to be taken in the event of a disruption.

    10. Implement Plan: Implement the plan and ensure that all employees understand their roles and responsibilities.

    11. Monitor and Update Plan: Monitor the plan, test and update the as needed to account for changes in the business.

    12. Flow the necessity for Business Continuity Planning to your suppliers


    • Various Consultants, Books and Seminars

    The Need for Responsible Conflict Minerals Sourcing

  • On 21 July 2010 the United States Congress enacted legislation that requires certain public companies to provide disclosures about the use of specified conflict minerals (Gold, Tin, Tantalum and Tungsten) emanating from the DRC (Democratic Republic of Congo) and nine adjoining countries (Covered Countries). Section 1502 of the Dodd-Frank Act is intended to make transparent the financial interests that support armed groups in the DRC area. By requiring companies using conflict minerals in their products to disclose the source of such minerals, the law is aimed at dissuading companies from continuing to engage in trade that supports regional conflicts. Section 1502 is applicable to all US Securities and Exchange Commission (SEC) "issuers" (including foreign issuers) that manufacture or contract to manufacture products where "conflict minerals are necessary to the functionality or production" of the product. The Act requires companies to verify and disclose their sources of Gold, Tin, Tantalum, and Tungsten.

    KII's ceramic packages frequently use gold plating for circuit-pattern forming and connection terminals. Additionally, tin is required for soldering. Furthermore, tantalum is used in capacitors to increase the storage capacity, and tungsten is used in printed circuits.

    KII will continue to work with our suppliers to build a strong supply chain, for example, by having them contact us as soon as they become aware of a smelter's involvement in a dispute. In addition, Kyocera Corporation is a member of JEITA's "Smelter Support Team" and they continue to encourage smelters to obtain certification directly.

  • The Conflict Minerals Sourcing Policy

    It is KII's policy not to purchase conflict minerals (Gold, Tin, Tantalum, Tungsten and Cobalt) that serve as a source of funding to armed groups or any other materials or products made using metals that pose a risk to human rights. KII will work with an industry recognized survey agency to conduct its annual surveys using the current CMRT or EMRT form and will be compliant with the OECD Due Diligence Guidance and the Dodd-Frank Act. KII will also utilize its resources within the Kyocera Corporation Supply Management group to support us in these efforts as required.