SUPPLY CHAIN
Supply Chain Initiatives
CSR Procurement Policy
Sugino Machine Group, under the motto “For All People and Society,” promotes its procurement activities from the following diverse perspectives.

Sugino Machine Group Procurement Guidelines
Since its founding, Sugino Machine Group has continued its business activities with the support of its business partners, customers, and local communities. Moving forward, we aim to share our vision with all stakeholders, engage in manufacturing, and contribute to the realization of a sustainable society. To this end, we established the “Sugino Machine Group Procurement Guidelines” in April 2022, consolidating our corporate philosophy, mission, code of conduct, and CSR procurement policy for our business partners. At the briefing session for business partners held in the same month, 129 companies, representing the top 80% of our procurement value, participated. We provided further detailed explanations to 15 of these partner companies (covering 12% of our suppliers) individually, seeking their understanding, agreement, and cooperation. These 15 companies submitted a letter of agreement to adhere to the Sugino Machine Group Procurement Guidelines. Moving forward, we will continue to explain and request agreement from an even larger number of partner companies.
Risk Assessment of Business Partners
The majority of Sugino Machine Group’s business partners are based in Japan, and from the perspective of local production and consumption, we select suppliers located within the prefectures where our facilities are situated. While the regional and industry-specific characteristics tend to result in lower human rights and environmental risks, we recognize the need to consider regional diversification of our suppliers due to the potential risk of natural disasters, such as earthquakes.
Dialogue with Business Partners
At Sugino Machine Group, we conduct quality audits, meetings with the management and responsible persons of our business partners, and inspections of production sites to ensure quality assurance.
Dialogue with Business Partners
Categories | Unit | FY2020 | FY2021 | FY2022 |
---|---|---|---|---|
Supplier Evaluation | Companies | 113 | 108 | 119 |
Quality Audit (an audit focused on quality-related matters) | 26 | 31 | 33 | |
Regular Visits (meetings with executives or managers regarding quality and delivery schedules, as well as inspections of the production site) |
246 | 99 | 103 |
Initiatives on Conflict Minerals
In its “CSR Procurement Policy,” Sugino Machine Group has established measures to avoid the use of raw materials that could cause human rights issues. Specifically, we prohibit the use of minerals mined from the Democratic Republic of Congo and its surrounding countries, which are known to fund armed groups in the region, as well as minerals sourced from regions or organizations where child labor and exploitation are prevalent. We have confirmed that the raw materials handled by our group do not include conflict minerals.