Supply Chain Management

Purchasing Policy

The IDEC Group promotes sustainable procurement and conducts purchasing activities with due consideration for human rights, the environment, and ethics throughout the entire supply chain. At the same time, we strive to build fair and equitable business relationships with all suppliers.
In addition, we pursue the procurement of materials that excel in QCD (Quality, Cost, Delivery) and consider the reduction of environmental impact. By fostering mutually beneficial partnerships with our suppliers, we aim to coexist and prosper together, contributing to the realization of a sustainable society.


Global
To enable global production activities, outstanding parts and materials shall be produced from global suppliers in the optimal locations.

Fair and Equitable
The Group shall pursue equal business opportunities and conduct fair transactions regardless of company size or nationality. Relationships shall be built based on cooperation and trust through transactions that reflect a comprehensive and fair evaluation of factors such as quality, price, delivery time, stability of supply, and CSR.
The Group shall also ensure sincere and fair transactions in accordance with contracts and shall not impose unilateral conditions or unreasonable demands by taking advantage of a superior bargaining position. Furthermore, the Group shall comply with applicable laws and regulations in each country concerning the abuse of a superior bargaining position.

Green Procurement
Procurement transactions shall comply with laws, regulations, and environmental standards. The Group shall also strive to reduce environmental impact through measures such as supplier collaboration on environmental management systems, proper chemical substance control, and resource recycling to procure environmentally friendly materials.

Sustainable Procurement
The Group shall promote sustainable procurement with due consideration for legal compliance, respect for human rights, occupational health and safety, relevant efforts for responsible minerals sourcing, environmental protection, coexistence with society, timely and appropriate disclosure of information, and the protection of confidential information.

Stable Supply and Business Continuity Planning (BCP)
The Group shall fulfill its responsibility to supply products to society even in the event of emergencies such as accidents and disasters. To this end, the Group shall ensure business continuity and strive to minimize the impact on customers, business partners, and local communities, while enhancing supply chain visibility and strengthening response systems.

Responsible Minerals Sourcing Policy

The IDEC Group will make the following commitments on sourcing of tantalum, tin, tungsten, and gold in the products manufactured by the Group.

1. The Group will not use minerals that are a source of funds for armed groups in Conflict-Affected and High-Risk Areas defined by the Organisation for Economic Co-operation and Development (OECD).

2. The Group will make efforts to source minerals from conflict-free smelters by performing due diligence on the origin and distribution areas of minerals based on survey using the CMRT (Conflict Minerals Reporting Template) and the EMRT (Extended Minerals Reporting Template) issued by the RMI (Responsible Minerals Initiative).

3. In the unlikely event that the use of conflict minerals, which are a source of funds for armed groups, is discovered, the Group will promptly take corrective action.

Promotion Structure

For the IDEC Group’s Sustainable procurement, the Global SCM Division works in cooperation with other relevant departments to develop plans and activities to tackle sustainability issues.
The progress of these plans and activities is reported to the Sustainability Committee, which is chaired by the CEO, for deliberation and decision-making. The content discussed is audited by the Board of Directors.

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Sustainable Procurement Guidelines

To share its philosophy and expectations regarding sustainable procurement with its suppliers, the IDEC Group established the IDEC Group CSR Procurement Guidelines. In September 2026, the Group revised and renamed the guidelines as the IDEC Group Sustainable Procurement Guidelines to align with the Responsible Business Alliance (RBA) Code of Conduct and further strengthen its efforts toward the realization of a sustainable supply chain.
The IDEC Group is committed to working collaboratively with its suppliers to address environmental, social, and governance (ESG) issues and advance a sustainable supply chain.


Green Procurement

Recognizing coexistence with the planet to be a shared wish of humanity and with regard to the relationship between business management and the environment the IDEC Group aims to realize sustainable growth by acting based on assigning top priority to environmental protection in all of its business activities.
As part of these efforts, these IDEC Group Green Procurement Guidelines have been established based on environmental laws and regulations in Japan and around the world, and the Group carries out Environmental protection activities intended to lessen its environmental impact.

Suppllier briefing

Communicating with Suppliers


CSR Procurement Briefing

On August 7, 2018, the IDEC Group invited 50 major suppliers to our head office to attend a CSR Procurement Briefing. Our CEO explained the importance of CSR procurement, appealing for the understanding and cooperation of suppliers. The executive officer in charge of manufacturing and SCM explained our global supply chain. The general manager in charge of purchasing explained our Purchasing Policy and the IDEC Group CSR Procurement Guidelines.
At one of IDEC’s major factories in Suzhou, China, the suppliers exchange meeting has been held each year since 2017 and a CSR Procurement Briefing was held in 2019 with 28 major suppliers. In addition, at our production site in Ho Fa, Taiwan, a CSR Procurement Briefing was held in 2022 with the participation of 21 major suppliers. It was an opportunity to build strong partnerships with suppliers by introduction of IDEC products using demonstration equipment and touring of the environmentally friendly factory (with 1,200 solar panels installed on the roof). In 2023, we held our second CSR Procurement Briefing in Taiwan and CSR supplier meeting online in Thailand to provide explanations to our major suppliers.

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CSR self-assessment

We actively encourage CSR self-assessments so that suppliers can check the progress of and make improvements to their CSR activities. Assessment items are divided into six categories in line with the contents of the IDEC Group Sustainable Procurement Guidelines.
There are a total of 34 questions, including questions relating to human rights issues such as child labor and forced labor, as well as considerations for the working environment and health and safety.
Each question is assessed on a five-point scale, based on the evaluation criteria.
We conducted this assessment at all major suppliers of IDEC Group production companies in Japan, China, Taiwan, and Thailand.
And we request suppliers with issues to address to make improvements.
Through this assessment, we are working to raise the level of CSR at all suppliers.

Evaluation criteria for the self-assessment

Score

Evaluation criteria

Evidence

5

Supplier engages in all elements of the activity. There are documents and records necessary for engaging in the activity.

Required

4

Supplier engages in most aspects of the activity. There are also documents or records that show partial engagement in the activity.

Required

3

Supplier engages in most aspects of the activity. There are no documents or records.

Not required

2

Supplier hardly engages in the activity, but will do so within around one year.

Not required

1

Supplier has no plans to engage in this activity for the time being.

Not required

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Surveys into responsible minerals sourcing

The IDEC Group investigates into components containing 3TG (tantalum, tin, tungsten, and gold) and implements corrective actions when conflict minerals that serve as a source of funding for armed groups are identified.

Publication of Supplier Newsletters

With the aim of gaining understanding with regard to the IDEC Group and strengthening cooperation with suppliers through dialogue, distributing information, and communication with suppliers, the Sustainability Management Department has been issuing a newsletter every December since 2018 and distributing it to approximately 300 companies via the Procurement Department.
In the newsletters, we not only introduce our business performance and corporate information, but also share ESG initiatives, such as environmental protection, social contribution, governance, and occupational safety, to our suppliers in Japan.
We will make continued efforts with our suppliers to develop a better society.




Contact Information for Material Procurement Inquiries

For any inquiries related to the material procurement, please contact idec.koubai@idec.com.
Please be advised that this contact channel is intended solely for matters concerning material procurement.
We appreciate your understanding and cooperation.