Strengthening Supply Chain Management

Supply Chain Management

Stable Supply of Products

Procurement Region Analysis (Fiscal 2022)

In Japan, Sysmex has developed an efficient production system for instruments by utilizing ICT to overcome global cost competition and ensure high quality for our products. The production of reagents, which are essential for daily testing carried out by medical institutions, has been expanded globally.
In order to ensure a stable supply of our products, we procure key raw materials from multiple sources and select production locations in accordance with the concept of “local production for local consumption”, thereby spreading out any risks. In addition, for emergencies, we have created mutual supply systems among factories and secured alternative transportation routes.
The resurgence of novel coronavirus infections has affected our business in many ways in recent years. In a tight supply situation for various raw materials, we obtained the cooperation of suppliers in prioritizing materials intended for healthcare. As a result, we could secure the purchase quantities of materials and increase inventories, enabling us to maintain a stable supply of our products. We also managed to maintain stable supplies during the prolonged disruption of global distribution by such measures as using new sea routes. In addition, in Japan, we’ve promoted initiatives for business continuity in an emergency. For example, January 2023 we started operations of new warehouses with a base-isolated structure resistant to various disasters.

Conducting CSR Surveys

Sysmex conducts CSR surveys of its business partners. For surveys of existing business partners, we use the CSR/Sustainable Procurement Self-Assessment Tool Set developed by Global Compact Network Japan, which covers a wide range of issues such as human rights, labor practices (including health and safety of employees), corruption, and the environment. We do not conduct business with new partners with inadequate CSR initiatives. In addition to CSR surveys, we hold management interviews with new business partners. We undertake the same sort of initiatives for overseas partners. In particular, personnel in charge of procurement make local visits to determine the status of child labor and workplace environments in order to confirm that no problems exist.
Each Group company also conducts regular surveys of its business partners. Sysmex Europe conducts CSR surveys of all new business partners regarding such aspects as human rights and green procurement. Jinan Sysmex Medical Electronics also holds quarterly meetings with its business partners to conduct risk assessments, in addition to carrying out environmental and occupational health and safety surveys. Sysmex Wuxi encourages its business partners to strengthen environmental and safety management when carrying out periodic risk assessments of them.

Fiscal 2022 Results

The response rate for surveys of primary raw material suppliers conducted in fiscal 2022 was 90%, maintaining the previous fiscal year's high response. Based on the results of the CSR surveys in the previous fiscal year, we identified items with low scores or high risks and followed up with our business partners with suggestions for improvement.

We are also considering measures to strengthen suppliers’ risk management. In FY2022, we conducted on-site verification of three primary suppliers on a trial basis, in addition to the CSR surveys. Continuing from the prior year, we expanded the CSR surveys of secondary suppliers, conducting CSR surveys of 69 secondary suppliers jointly with 13 primary suppliers.

Improving the Quality of Supplied Parts and Raw Materials

Sysmex provides a quality assurance agreement that clearly states our requirements for the quality of goods, and concludes agreements with business partners after confirming their understanding of our procurement policy. We perform quality assessments of supplied goods and audits of business partners regularly to ensure that proper quality control is being carried out.

Relations in the Supply Chain

At Sysmex, we strive to strengthen our relationships with trading partners by holding annual briefing sessions for our suppliers to ensure their understanding of our business and procurement policies.
In fiscal 2022, we held BCP training for our primary suppliers, as well as explanatory meetings on the promotion of sustainability and green procurement, in which 431 business partners in total participated.
We also hold regular meetings with overseas business partners to strengthen collaboration. Sysmex Europe periodically holds meetings with all of its business partners, checking their compliance with Sysmex’s environmental and social responsibilities, as well as details of business activities. Sysmex Malaysia holds monthly meetings with local distributors to discuss customers’ needs and issues, aiming to improve product quality and customer satisfaction.

Conducting Internal Awareness Activities to Ensure Compliance with Legislation

Sysmex uses an electronic procurement system to prevent undue reduction in payments and return of products. In addition, all members of Sysmex Corporation’s Procurement Department and relevant members of Sysmex’s domestic Group companies undergo training on the Subcontract Act. For people newly assigned, we also provide training on our procurement policy, CSR, and procurement risks.