Basic Policies

Procurement Management

Our Basic Policy

In order to enable high-quality, reliable and stable manufacturing, it is essential not only to ensure the quality of parts in procurement and to ensure stable supply, but also to CSR procurement in consideration of labor ethics and the environment. ROHM Group aims for procurement activities in which both parties can grow on a sustainable basis, while cherishing continuous trusting relationships and cooperative relationships with suppliers.

Procurement Policy

ROHM Group shall conduct procurement activities based on the following five policies in order to acquire customers' satisfaction for ROHM products.

1. Mutual Reliability and Prosperity
ROHM Group will recognize suppliers as important business partners of the enterprise activities, and importantly have a reliable and cooperative relationship, so that ROHM Group is able to mutually aim at building up win-win relationship.
2. Fair and Equal Footing Trade
ROHM Group shall conduct procurement activities for suppliers with fairness, equal footing and modesty during purchasing material, semi-products and equipment etc. and getting any type of service.
ROHM Group shall never enforce to do unfair trading with a superior position.
3. Fair Selection
ROHM Group shall globally & broadly open a trade chance so that equally realize a business opportunity.
During processing of suppliers' selection, ROHM Group shall consider a lot of aspects which are quality, technology, delivery and price. Additionally, there are also enthusiasm, management, ethics, human rights, risk management, environment protect, health and safety, removal of anti-social forces etc.
4. Proper Evaluation and Distribution for Added Value of Product and Service
ROHM Group shall conduct new products' development and cost reduction activities on the basis of strong partnership with suppliers. Also, ROHM Group shall promote proper evaluation and price for provided product and service through these activities.
5. CSR Procurement
ROHM Group shall make an effort to penetrate CSR procurement with deeply mutual understanding between suppliers and ROHM Group in order to promote CSR procurement based on CSR procurement guideline with ROHM Group. ROHM Group also promote environment-friendly procurement based on Green Procurement Guideline.

Supplier Selection Criteria

ROHM Group has adopted RBA Code of Conduct to promote sound and sustainable procurement activities. Cooperation with suppliers is essential for promoting CSR procurement activities based on RBA Code of Conduct.

Quality, price, delivery, stable supply, environment, finance, human rights, and ethics are the criteria for selecting suppliers. In addition, ROHM Group distributes our CSR Procurement Guidelines, which specify ROHM Group's approach to CSR procurement, to all suppliers, and requests them to promote activities based on the guidelines.

Supplier Selection Criteria

1. Promotion of ROHM Group CSR Procurement Guidelines
2. Conclude "basic transaction contract" that complies with RBA Code of Conduct
3. Properly ensure the quality, price, and delivery date of materials and services
4. Stable supply capacity and ability to flexibly respond to fluctuations in demand
5. Have a supply continuation plan even in the event of an unforeseen situation such as a disaster
6. Have technological capabilities that can contribute to the product
7. Sound business conditions
8. Responsible mineral and green procurement to meet our demands
9. Appropriately manage and protect confidential information obtained through transactions with us

Supply Chain Overview

ROHM Group's supply chain is as follows. (FY 2019)

Ratio of Suppliers by Region
Ratio of Purchase Amount by Region

Identifying Critical Suppliers

ROHM Group recognizes suppliers that are particularly important for business continuity as “critical supplier”.

When identifying them, all suppliers are those who supply key materials that meet ROHM's certification requirements.

From among them, we select suppliers that handle materials and parts that are procured in large amounts and are important and difficult to replace. In addition, we recognize suppliers who have agreed to adopt the RBA Code of Conduct as critical supplier. In 2021, 30 companies were selected.

Flow of Selection of Critical Suppliers

Flow of Selection of Critical	Suppliers Flow of Selection of Critical Suppliers

[Measures for All Suppliers]

When selecting a supplier, we request and support the construction of a management system for environment, society, governance, quality, and BCP, and evaluate the effectiveness and appropriateness of the management system. In addition, we will request improvements as necessary to improve the accuracy of the management system.

[Measures for Critical Suppliers]

We ask criteria suppliers to comply with the requirements of RBA Code of Conduct. Specifically, we ask them to aim for A and A-rank evaluations through CSR self-assessments.
In addition, we review and interview the self-evaluation conducted by them. In addition, we support the understanding and improvement of supplier’s issues through audits. Then, we carry out management reviews and manage business continuity risk appropriately and effectively.