Procurement｜HOSHIZAKI CORPORATION

Responsible Procurement

When commencing business with suppliers, companies under the Hoshizaki Group umbrella get suppliers to acknowledge the Group’s basic policy on procurement and assess suppliers based on certain evaluation criteria. In addition, to execute procurement under consistent standards, Group companies use a supplier checklist based on ISO rules for suppliers and select suppliers based on assessment related to such factors as quality, stable supply and sound management.

Communication with Suppliers

Hoshizaki endeavors to deepen awareness of the Group’s basic policy on procurement and regularly holds information meetings for suppliers. In addition, suppliers are regularly reevaluated, even though a business relationship already exists, using the supplier checklist, and the relationship is reviewed. Suppliers that fail to meet required quality levels are asked to take steps to correct the disparity.

In this time of COVID-19, we have implemented a temporary management status survey for suppliers. We also initiated a survey that goes beyond primary suppliers to encompass secondary suppliers as well to ensure stable procurement.

In addition, HOSHIZAKI AMERICA—our U.S. subsidiary—audits its suppliers on-site in principle periodically. These audits cover policies on quality and process controls as well as other items, including code of conduct, labor safety and hygiene, and environmental protection measures. This approach underscores efforts to promote sustainable procurement in cooperation with suppliers.

Addressing Issue of Conflict Minerals

There is a concern, globally, that mineral resources, such as tin, tantalum, tungsten and gold, mined in the Democratic Republic of the Congo and neighboring countries could be used to finance armed groups that violate human rights through non-humanitarian acts, including violence and looting. Such mineral resources are known as conflict minerals. The Hoshizaki Group seeks to procure minerals in ways that are not complicit in the violation of human rights or in destruction of the environment.