Responsible Supply Chain Management

SHARE

in

The LIXIL Group seeks to ensure stable product supply and fulfill stakeholder accountability by identifying and addressing risks at the procurement stage, and managing our processes across our supply chain.

Action plan Extend our Japanese CR procurement process across the Group
KPI Responsible procurement surveys coverage ratio (based on purchased amount) (%), and percentage of suppliers which satisfy CR management standards (%) and improvement rate (%)

Target / ProgressOPEN or CLOSE

  • Target for FYE2018

  • ・Achieve responsible procurement surveys coverage ratio of 90% in Japan and 90% outside of Japan*

    ・Achieve 90% conformity rate in Japan and 80% outside of Japan, and 100% improvement rate

  • Progress as of FYE2018

  • ・Coverage of supplier CR survey rates are 90% in Japan and 90% outside of Japan

    ・Conformity rate are 95% in Japan and 85% outside of Japan
    *Excluding GROHE Group S.a.r.l., American Standard Brands and PERMASTEELISA GROUP during FYE 2015-2018

Our Approach

The LIXIL Group has established a Procurement Policy to develop healthy business partnerships with counterparts worldwide. This policy forms the basis of our overall supply chain management. In FY2018, the Group developed a Procurement Compliance Policy to provide more detailed guidance for the whole Group. We also compiled our Supplier Code of Conduct and are working to ensure business partners fully understand all the items they are required to adhere to.

Promoting Responsible Procurement that Upholds the Environment and Labor Safety

The LIXIL Group promotes responsible procurement. The Supplier Assessment Standards used to select business partners includes: quality, cost, and delivery (QCD) criteria and technical capabilities as well as the ability to deliver stable supply, sustainable use of resources, proper control of chemical substances, compliance to human rights, and promotion of labor safety. The supplier assessment criteria are applied in both the selection of new partners and the regular inspection of existing partners. Having selected a business partner, we also conduct assessments of procured products. We seek to strengthen responsible procurement across our network of international business partners, which has been extended by mergers and acquisitions.

Responsible Procurement Surveys and Follow-up Action

LIXIL Corporation actively shares our Procurement Policy and Supplier Code of Conduct to help steer our expanding and increasingly complex supply chain network following the five-company merger in 2011 and subsequent series of international mergers and acquisitions.

We use responsible procurement surveys to gain a strong understanding of business partners’ responses on 66 different survey items (46 for Japan, where low-risk items have been removed).

In FYE2018, we visited over 100 suppliers inside and outside Japan that performed poorly in our survey to set targets for improvement and provide necessary support. We attained our conformity targets of the current fiscal year of 90% in Japan and 85% internationally on procurement assessment items. The survey results serve as a valuable evaluation tool deciding whether or not to continue dealings with existing suppliers.

(Scope of application) Suppliers to LIXIL Corporation and its subsidiaries
*Excluding GROHE Group S.a r.l., American Standard Brands, PERMASTEELISA GROUP
Japan: Procurement by operating sites in Japan
Overseas: Procurement by operating sites overseas

Management of Chemical Substances

LIXIL Corporation has set rules on chemical substances that are forbidden or require strict control for use in products and/ or during production processes.

LIXIL’s list of controlled substances can be downloaded from the link below:

SHARE

in
PageTop