Supply Chain Management
Policies
The NISSIN FOODS Group formulated the NISSIN FOODS Group Policy on Sustainable Procurement in 2017 after approval by the Management Committee. Besides food safety, the procurement policy includes respect for the global environment and human rights and a commitment to procuring legally produced raw materials. We carry out our daily procurement activities, always making sure that they are in line with the procurement policy.
In addition, the cooperation of suppliers is also important for sustainable procurement. The Group has informed all primary suppliers of the procurement policy and received their signatures acknowledging that they have confirmed the details of the procurement policy. In addition, every year, the executive officers and CRO report the progress of initiatives for suppliers toward sustainable procurement at the Board of Directors.We also offer lessons related to the Group’s procurement policy and initiatives for sustainable procurement in our in-house university NISSIN ACADEMY to spread and deepen understanding to departments related to raw material procurement.
Identification of Important Suppliers
Ties with suppliers are essential in manufacturing sustainable, safe, and secure products. Besides the procurement volume and transaction value of raw materials, the NISSIN FOODS Group identifies important suppliers based on whether they handle commodities (raw materials and other primary products) with high environmental, human rights, or governance risks. Out of these important suppliers, members from the NISSIN FOODS HOLDINGS Resourcing Division and Sustainability Committee conduct local visits to those determined to have high risks related to the environment, human rights, or labor environments to implement assessments based on international standards.
Methods for Selecting New Suppliers
The NISSIN FOODS Group Policy on Sustainable Procurement is also an important standard when selecting new suppliers. We ask potential suppliers to conduct a self-check based on the procurement policy prior to actually doing business with them to confirm that the potential supplier meets the sustainability requirements stipulated in the policy. In addition, out of these potential suppliers, we prioritize the selection of those companies that satisfy the procurement policy at higher levels.
- Provisions Set Forth in the NISSIN FOODS Group Policy on Sustainable Procurement
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- ・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
Initiative
Self-assessment Questionnaire (SAQ)
Since 2023, we conduct a self-assessment questionnaire (SAQ) for all suppliers in Japan regarding the NISSIN FOODS Group Policy on Sustainable Procurement each year. The scope of the SAQ is structured according to the items in the procurement policy, and questions are developed based on the CSR/Sustainable Procurement Self-assessment Tool Set issued by Global Compact Network Japan (UNGJ). In addition, we conduct briefings about the SAQ for suppliers to explain the Group’s initiatives for sustainable procurement and the structure of the SAQ. We also provide feedback, such as the average score for each supplier type and questions which tend to have low scores in general. For suppliers with low scores, we conduct separate interviews toward improvements and provide feedback regarding the details of evaluation for each item as well as points for improvement.
- Five Areas of SAQ Regarding the NISSIN FOODS Group Policy on Sustainable Procurement
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- ・Food safety / security
- ・Compliance with laws, regulations, and ethics
- ・Earth/environment
- ・Respect for human rights
- ・Co-existence with local communities
Supplier Audits
NISSIN FOODS HOLDINGS Resourcing Division visits the manufacturing plants of suppliers to conduct audits based on the NISSIN FOODS Group Policy on Sustainable Procurement, mainly for suppliers with low scores in the SAQ or important suppliers that have been determined to have high risks related to the environment, human rights, or labor environments. When areas not satisfying the standards are found during audits, the supplier is asked to make improvements within one year, and we terminate our contract if improvements are not seen within a year.
Related Information and Data
Breakdown of Procurement Costs by Region
Coverage: NISSIN FOOD PRODUCTS
| FY 3/2024 | |
| Japan | 91% |
| China | 5% |
| Other Asian countries | 3% |
| Europe and other regions | 0.1% or lower |
Significant Suppliers
Coverage: NISSIN FOOD PRODUCTS
| FY 3/2024 | |
| Total number of significant suppliers | 47 |
| - Of which, number of Tier-1 suppliers | 42 |
| - Of which, number of secondary or lower-tier suppliers | 5 |
| Significant Tier-1 suppliers’ ratio of total procurement value | 88% |
SAQ
Coverage: NISSIN FOOD PRODUCTS
| FY 3/2024 | |
| Total number of suppliers that went through SAQ (number of significant suppliers) | 224 (47) |
| - Of which, number with an A evaluatio | 91 |
| - Of which, number with a B evaluation | 103 |
| - Of which, number with a C evaluation | 27 |
| - Of which, number with a D evaluation | 3 |
- *A score of 80 to 100 is evaluated as A, 60 to 79 as B, 40 to 59 as C, and below 39 as D (out of a maximum score of 100)
Supplier Audits
Coverage: NISSIN FOOD PRODUCTS
| FY 3/2024 | |
| Total number of suppliers audited | 39 |