Procurement Practices Procurement Practices


Advantest Procurement Policy

The Advantest Group's CSR Policy pledges respect for our suppliers, places value on open communication with our suppliers, and emphasizes the maintenance of fair business relationships in accordance with relevant laws and regulations. We are also committed to sharing values and building collaborative relationships with our suppliers, toward our goal of achieving mutual growth.

Organization to Promote Fair Trade (CSR Procurement)

In order to promote and manage fair trade we have established a department whose role is to check the purchasing department and we implement a once-yearly audit by Audit and Supervisory Committee to ensure that there are no problems and that normal trade practices are being followed. Also, every year we implement an internal control audit using an external organization and we were able to confirm again in fiscal 2015 that there were no problems.
Moreover, for outstanding orders, in addition to checking the status at the end of each month to ensure that there are no acceptance inspection omissions, for orders where the acceptance inspection is taking a long time we report the reason for this and the expected completion date to the Audit and Supervisory Committee.

Education for Practicing Fair Trade

Since fiscal 2010, we have held seminars on a subcontractors law, participation in which is not restricted to purchasing department staff. In fiscal 2015, four of these seminars were held. In the future, we will continue to educate our employees in order to realize the principles of fair trade.

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A scene from the subcontractors law seminar

Social Responsibility in the Supply Chain

Implementation of questionnaire survey

We carry out a business partner questionnaire on CSR annually, and every quarter we evaluate our business partners on QCD*. We feed the results back to the business partners to create a relationship where they can develop together with us.
In order to fulfill our social responsibilities across our supply chain, including all of our business partners, we placed our “Advantest Procurement Policy” and “Advantest CSR Procurement Guidebook” on our website and we request that our business partners respect all related laws and social norms.
So that we can monitor the current situation effectively, we carry out an annual questionnaire survey targeting the suppliers that play the most important role in our procurement operations. For fiscal 2015 we carried out the questionnaire in March 2016 and obtained answers from each company regarding their approach to human rights, labor problems, health and safety, environmental conservation, fair trade, and intellectual property protection. The return rate for completed questionnaires was 100%. We were able to confirm that each company had established an overall policy and Code of Conduct for societal responsibility. We will conduct another questionnaire in fiscal 2016 and confirm our business partners’ response to our purchasing policy.

* QCD: abbreviation of Quality, Cost, Delivery

Set up of inquiry and reporting window

During trade with our business partners, in the event that one of our employees infringes, or is suspected to infringe, on our Code of Conduct, a trade contract or a relevant law, we request that this is reported to the Contact Window on our website. In fiscal 2015 we did not receive any complaints. The reporter and their company would not be penalized in any way for reporting. Following an investigation, in the case that a problem is recognized, the action in question would be stopped and measures would be taken to prevent reoccurrence.

Response to Conflict Minerals

Implement of survey

At Advantest, in order to respond to Section 1502 (conflict minerals provisions) of Title XV of the Dodd-Frank Wall Street Reform and Consumer Protection Act and related regulations in the U.S., we are playing an active role together with the industry organization to address the conflict minerals problem.
Since 2013 we have been implementing an annual survey of our business partners regarding use of conflict minerals through a CFSI* report (conflict mineral reporting template (CMRT)) and releasing the results.

* CFSI: Conflict-Free Sourcing Initiative

Organization to respond to conflict minerals

We have been taking steps to respond to the conflict minerals issue, setting up a conflict minerals working group in 2012 the membership of which comprises senior Executive Officers. The working group includes a supply chain survey group, customer response group, disclosure group, and Secretariat.


Conflict minerals response survey

Having completed a pre-survey in 2012 and a business partner explanatory meeting to ask for cooperation before the 2013 survey, we surveyed business partners on conflict minerals use and smelters using a CFSI* report [conflict minerals reporting template (CMRT)] retroactively.
The survey response rate was 96% in 2013, 97% in 2014, and 99% in 2015.

* CFSI: Conflict-Free Sourcing Initiative

Cooperation with industry bodies

In December 2012 we participated in the JEITA* “Responsible Mineral Procurement Review Committee” and we have been working together with industry organizations to promote conflict-free procurement and spread awareness.

* JEITA: Japan Electronics and Information Technology Industries Association