Identifying High-impact Suppliers
Ties with suppliers are essential in the manufacturing sustainable, safe and secure products. The NISSIN FOODS Group identifies those suppliers that have a high quantitative impact on the Group’s raw materials procurement and business transactions.
In addition to this, there is a possibility that some raw material suppliers have a negative impact on the environment, and have human rights and labor environment issues. We positioned them as high sustainability-risk suppliers. The NISSIN FOODS HOLDINGS Resourcing Division members and the Sustainability Committee members are scheduled to locally visit suppliers determined to have a high sustainability risk and implement an assessment based on international standards.
- Break down of procurement costs by region (Target: NISSIN FOOD PRODUCTS])
- ・Japan: 91%
- ・China: 5%
- ・Other regions in Asia: 3%
- ・Europe and other regions: 0.1 or lower
Methods for selecting new suppliers
The NISSIN FOODS Group asks potential new suppliers to conduct a self-check based on the Nissin Group Policy on Sustainable Procurement prior to actually doing business with them. This is done to confirm that the potential new supplier meets the Group’s standards.
- Provisions set forth in the Nissin Group Policy on Sustainable Procurement
- ・Prohibit corruption and bribery, and prevent anticompetitive practices
- ・Prevent pollution of the environment, respect biodiversity, and restrict use of agrochemicals
- ・Prohibit child labor, forced labor, abuse and harassment, and pay appropriate wages
- ・Comply with the laws and regulations of each country
All primary suppliers have been informed of the Nissin Group Policy on Sustainable Procurement and have submitted a signature of acknowledgement that they have confirmed the details of this policy. In addition, a manager of the resourcing unit at NISSIN FOODS HOLDINGS visit suppliers and outsourcing manufacturers to conduct an audit in line with the CSR procurement checklist, which is based on the Nissin Group Policy on Sustainable Procurement (the goal is to visit 100 suppliers a year). Suppliers that do not meet set standards during the audit are asked to make improvements within a 12-month period.
- Five fields that make up the CSR procurement checklist
- ・Food Security/Food Safety
- ・Compliance with laws and regulations/Ethical acts
- ・Respect for human rights
- ・Co-existence with local communities
- Number of suppliers visited in Japan and abroad
- Fiscal 2017- Fiscal 2020: Around 100 suppliers visited annually