Procurement Policy

1. Working together with Suppliers

Suppliers are invaluable partners in our efforts to continually better serve customers in all of our business areas, mainly by helping us to develop products that meet the customers' expectations. Panasonic is committed to creating the functions and values customers demand by establishing relationships of mutual trust with suppliers though joint efforts.

To evaluate and select the best suppliers in a fair manner, Panasonic has adopted the following criteria.

1. Assurance of required product quality and safety
2. Competitive pricing
3. Fulfillment of on-time delivery
4. IT-oriented responsiveness to changes
5. Advanced technology and development capability
6. Stable operation infrastructure
7. Environmental consciousness
8. Compliance
9. Information security
10. Respecting human rights and the health and safety of labor

2. Implementation Information Gathering and Purchasing during the Development Phase

Our procurement employee serves as a liaison between the company and its suppliers to collect information on market trends in parts, materials, and products as well as new technology, materials, and processes. We are responsible for collecting key information and sharing it with the relevant sections and individuals.

Procurement employee must collaborate with suppliers and the company's product planning, design, and R&D operations to take proactive actions. We want to help make products that are more competitive through active involvement in all manufacturing processes, from product development to after-sales services and making effective proposals.

3. Ensuring Product Quality and Safety

In line with the autonomous quality assurance policy, we will clarify the quality level of functions and standards that procured parts, materials, and products must fulfill in the development phase and request suppliers to secure and maintain the required quality.

We also ask each suppliers to develop their own autonomous quality assurance systems by ensuring high quality in manufacturing processes.

4. Implementation Cost Reduction Programs

We will endeavor to reduce not only materials and processing costs but also total costs to achieve the product values and prices expected by customers. To this end, we will closely work with our suppliers to expedite the development of new materials and processes and VE (Value Engineering) activities.

5. Achieving Optimum Procurement by Shortening Lead-times

We will strive to shorten lead-times for procurement, product development, production and administrative processing to flexibly respond to changes in market needs by closely collaborating with our various sections.

6. Living in Harmony with the Global Environment through Green Procurement

We will place priority on procuring environmentally friendly parts, materials, and products and promote the development of new materials and parts that have less impact on the global environment with a view to achieving Green Procurement.

7. Improving Global Procurement

Panasonic must contribute to host countries through local procurement. We aim to establish partnerships with suppliers by considering the feasibility of long-term business arrangements in addition to optimum quality and prices. We will also develop an information network among global production operations to make flexible and prompt responses.

8. Enhancing Compliance

To conduct procurement activities with integrity, we will ensure compliance with the laws, regulations, and social ethics in each nation and region and promote fair and open competition.

9. Better Utilizing Information and Enforcing Information Security

We will make efforts to gather information that is useful to our business operations and then effectively manage, utilize and eventually dispose of this information. Regarding the information of other companies, we will carefully consider whether it's necessary before obtaining it and take every possible measure to maintain its confidentiality and prevent leakage.

10. Respecting Human Rights and the Health and Safety of Labor

Panasonic will conduct its procurement activities while respecting the human rights of individual employees of the company and its suppliers and thus provide a safe and healthy working environment.