Supply Chain Management

Basic Approach

In line with a basic policy centered on the three principles of openness and fairness, partnership, and relationship with society, the NGK Group has established the Basic Purchasing Policy in order to promote fair and honest business transactions, as well as to help ensure prosperous relationships, with the procurement partners in our supply chain.

Communication Activities with Procurement Partners

Supply Chain Management System

At NGK, the Purchasing Department is responsible for managing tier 1 suppliers. It also manages tier 2 and beyond suppliers that provide critical items such as raw materials. All supplier management is done in line with NGK’s Supplier Management Regulations.

Familiarization of the Purchasing Handbook

Purchasing operations are directly related to various important aspects of corporate management, such as assets, production, development, and business performance, and also involve external and financial activities, major areas prone to compliance issues. In light of this, we created the Purchasing Handbook to summarize internal rules for purchasing engagement and issued the first edition of it in fiscal 2007. The Handbook has since been reviewed every year.
Efforts have also been made to better familiarize personnel with the tool: it has been made available on the company intranet and its significant objectives are discussed in company training programs, particularly for new managers.

Introduction of General Indirect Materials Purchasing System

Typically, each division has performed general indirect materials purchasing, using an off-line, piecemeal approach; however, in order to centrally integrate indirect materials spending and make it more transparent, we have introduced a global transaction network system.
This system is being launched in fiscal 2021, and we are making preparations to progressively expand its scope of application.