We base our relationship with raw material suppliers on just evaluations, selection and fair competitive opportunities.
Rigorously Engaging in Fair and Equitable Business Practices with Suppliers
In our dealings with suppliers, we provide each company with an opportunity for equitable competition in keeping with our Purchasing Control Regulations and our Business Partner Selection Standards, based on the Suntory Group’s Basic Policy on Supply Chain Sustainability. At the same time, we fairly evaluate efforts regarding the quality and supply capabilities of the products and services, financial status, assured safety, environmental conservation, and social contribution of each company, when we select new suppliers or determine whether to continue business with our existing business partners.
We consider our business partners as trusted partners who combine their strengths with ours in order to provide products and services that bring joy to our customers.
Bookkeeping System that Corresponds to the Subcontract Act
Suntory Group operates a bookkeeping system that corresponds to the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors (Subcontract Act), enforced by the government of Japan. The system prevents troubles such as payments delay through displaying warning on the administrator screen when payment process is not carried out according to the information such as payment conditions entered at the ordering of raw materials or packaging. There was no transaction of raw material or packaging that violated the Subcontract Act in 2018.*
*The number of business partners targeted by the subcontract Act is 46 for the Purchasing Department (about 11% of the transaction fee) as of May 2018 and 115 companies for the Packaging Material Development Department (about 10% of the transaction fee) as of December 2018.