Procurement Policy Procurement Policy

1. Introduction

In order to contribute to the progress of society, technology, and the enrichment of people's lives, and in accordance with our corporate mission statement, "Technology Support on the Leading Edge", Advantest Corporation and its affiliates ("Advantest Group") provide products and services of both high quality and high reliability in the test and measurement field. It is also for this purpose that we strive to develop leading technologies, enhance productivity, and improve the quality of our support services. We do not believe that such is realizable without the cooperation of our suppliers who are important members of the value chain. As such, it is our hope that our suppliers understand our Basic Procurement Policy and Supplier Expectations and cooperate with us to fulfill our corporate social responsibilities (CSR).

2. Basic Procurement Policy

We will evaluate and select our suppliers on a fair and equitable basis, taking the following factors into account:

a) Approach to Environmental Conservation
We encourage our suppliers to supply us with goods and services that have the smallest negative impact on the environment so that we can develop and manufacture environmentally friendly products.
b) Ensuring the Quality and Safety of Products and Services
As a manufacturer of test equipment, in order to fulfill our duty of contributing to the ability of our customers to produce high quality products, we will strive to procure goods and services that satisfy our requirements with respect to quality and safety.
c) Pricing of Products and Services
In order to realize product price levels that satisfy our customers, and based on the principle of market competition, we will seek to purchase goods and services at optimal price levels. Additionally, along with procuring goods and services that proactively adopt new technology, methods, and materials, we will encourage our suppliers to proactively promote value engineering activities.
d) Observing Delivery Deadlines, Stable Supply Capabilities and the Ability to Cope with Fluctuations in Demand
In order to respond to customer delivery deadlines and fluctuations in the demand for our products, we will strive to ensure that we can procure, on a stable basis, goods and services at the necessary times and in the necessary volumes.
e) Technical Capabilities
We will proactively adopt original, innovative, and superior technologies in the fields of design, processing, and packaging etc.

3. Supplier Expectations

In order for us to fulfill our social responsibilities, we expect our suppliers, as part of the supply chain:

  • (1) To comply with the laws, regulations and accepted social practices applicable to suppliers in the countries in which they are doing business, including, but not limited to:
  • Prohibitions on irregular conduct such as bribery and corruption
  • Prohibitions on child and forced labor, illicit work and discrimination
  • Laws and regulations governing labor practices and those requiring the maintenance of safety-conscious working conditions
  • Import and export related laws and regulations, taking into consideration the possible export of Advantest Group products and services
  • Intellectual property laws

<Handling the Issues with Conflict Minerals>
We consider the proper handling of conflict minerals (*) as one of our important social responsibilities, and we will drive initiatives to eliminate the adoption of any parts and components which consist of any raw materials that may contain the conflict minerals mined and extracted by the use of fraudulent funds or by any illegal methods. We kindly request our suppliers to secure transparency in the sources of your parts/components and material.

(*) Conflict Minerals:
The conflict minerals are defined as the four metals, including tantalum, tin, gold and tungsten, and the ore of the four minerals, including columbite-tantalite (coltan), cassiterite, gold and wolframite. The Democratic Republic of the Congo and its adjoining countries are the places of production of these minerals. Mining and trading of these minerals are believed to be the source of funds to the armed groups and have been conducive to the conflicts or have been the root causes of the human-rights violation, the labor problems, etc. The Dodd-Frank Wall Street Reform and Consumer Protection Act, established in the United States in July 2010, incorporated the provision and the obligation to disclose the information on the product usage of the conflict minerals produced in these countries and have become the source of funds to the armed groups.

  • (2) To, in accordance with "Advantest Green Procurement Guidelines", establish environmental management systems, including, but not limited to that of ISO 14001, and to promote environmental conservation activities and the procurement of goods, services, and production activities that have the smallest negative impact on the environment while paying regard to resource conservation. Suppliers are also encouraged to reduce or eliminate use of potentially hazardous substances.
  • (3) To establish quality management systems and carry out quality control activities for goods and services and ensure the safety of goods and services in accordance with the provisions of master purchase agreements, individual contracts, and quality assurance agreements.
  • (4) To supply goods and services at competitive prices and to continually endeavor to reduce prices.
  • (5) To establish a flexible and stable supply system to ensure the on-time delivery of, and the prompt response to requests for, goods and services, and to respond to rapid fluctuations in the demand for the same.
  • (6) To constantly strive to improve their technological capabilities, to foster technological innovation, and to provide us with goods and services that adopt advanced technologies so that we can provide our customers with products that are safe and that meet their needs.
  • (7) To conduct stable and sound company operations so that we can establish long-term business relationships. In order to confirm such, we request that our suppliers disclose certain information to us, including, but not limited to, corporate and financial information.
  • (8) To establish information management systems to prevent leaks of confidential information and to maintain such information obtained through business with Advantest Group in strict confidence.

∗ Please refer to the “Advantest CSR Procurement Guidebook” to obtain more detailed information regarding the above CSR issues.
Advantest CSR Procurement Guidebook (PDF: 136KB)

∗ Please refer to the “Advantest Green Procurement Guidelines”.
You may read and download the Guidelines at the following internet address:
Advantest Green Procurement Guidelines

Advantest is committed to maintaining the highest standards of ethical behavior and to full compliance with the EICC Code of Conduct. If you ever witness or suspect unethical behavior by an Advantest employee -- including behavior that violates the code of conduct, contracts, laws, or regulations -- please use this form to report it. Your report will remain anonymous. All concerns will be taken seriously and investigated promptly.