Policy on procurement (The Advantest Procurement Policy and CSR Procurement Policy)
The Advantest Group's CSR Policy pledges respect for our suppliers, places value on open communication with our suppliers, and maintains 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.
Framework and system for managing fair trade (CSR procurement)
To promote and maintain fair trade practices, the Advantest Group has established the Procurement Administrative Department independent of the Purchasing Division. The department administers a CSR questionnaire to suppliers once a year and also conducts an evaluation of supplier QCD* on a quarterly basis. We provide feedback to suppliers on the results, a process which helps us to grow together with our suppliers.
An audit is conducted by our corporate auditors on transactions with suppliers twice a year to confirm that there are no issues or deviations from standard commercial practices. In addition, an internal control audit by an external body is conducted once a year. This audit confirmed that there were no issues during fiscal 2013.
Furthermore, we manage total order balances through checks at the end of each month to ensure there are no omissions in acceptance inspections. For items for which there is a long delay from the order date to the acceptance inspection, the reason and planned acceptance inspection are clarified and a report is made to the corporate auditor.
If Advantest or its employees do not appear to be living up to our Code of Conduct, trade contracts, or laws in dealings with suppliers, we encourage suppliers to report the incident in the "contact" window of our website.
A report will not adversely affect the person making the report or his / her company. We will investigate, and if necessary, stop the relevant conduct and take measures to prevent a recurrence.
* Note: QCD is an acronym of Quality, Cost, and Delivery time.
Training on conducting fair trade
Seminar on the Subcontractors Act
In fiscal 2013, Advantest conducted seminars on the Subcontractors Act not only for purchasing staff, but also for and other employees. We plan to provide ongoing training on fair trade practices going forward.
In response to the Dodd Frank Wall Street Reform and Consumer Protection Act, Section 1502 (the conflict mineral section), Advantest participates in the JEITA* Responsible Minerals Trade Working Group and is addressing the problem of conflict minerals in tandem with this industry association.
In 2013, we conducted a survey among our suppliers using the EICC/GeSI reporting template on conflict minerals, and have disclosed the results.
* Note: JEITA is the Japan Electronics and Information Technology Industries Association.
Building a win-win relationship with suppliers
New Year's party
At Advantest, we hold a New Year's party, meeting, and reception for suppliers once a year, giving participants an opportunity to exchange opinions with Advantest executives.