Supply Chain Management

Basic Approach

NSD’s business operations are supported by many business partners. We recognize that further deepening cooperation with these business partners will be vital to our efforts to achieve a sustainable society. We engage in equal and fair business transactions following relevant laws and regulations. At the same time, we are actively promoting work style reforms together with our business partners, with focus on telework and reducing working hours by streamlining business processes.

To promote initiatives across the entire supply chain, we have established our Sustainability Procurement Guidelines containing our expectations of business partners. In turn, they are required to understand and implement them.

Sustainable Procurement Guidelines

Today, companies are expected to conduct activities across their entire supply chains that promote sustainable growth of society. NSD Group is committed to proactively engaging in sustainability activities focused on our supply chain as we strive to fulfill the expectations of society and continue to earn the trust of society.
To work with our business partners toward the realization of a sustainable society, we created these Guidelines to outline the matters in which we expect our business partners to engage. When drafting these Guidelines, we referenced the Code of Conduct created by the Responsible Business Alliance (RBA), an industry coalition dedicated to corporate social responsibility in global supply chains.

Initiatives to Deepen Collaboration with Business Partners

Fair and equitable business transactions

The NSD Group Code of Conduct and the NSD Group Behavioral Guidelines both require that our actions abide by correct corporate ethics and comply with relevant laws and regulations, including Japan’s Unfair Competition Prevention Act and Anti-Monopoly Act.
Whenever we commence business dealings with a new business partner, the Development Support Department reviews the transaction to ensure compliance with various guidelines and laws, such as Japan’s Subcontractor Act and Temporary Staffing Services Act.
We have also established a whistleblower hotline that is accessible by our business partners in an effort to prevent fraud and scandals.

Regular sharing of information with senior management of business partners

The understanding and cooperation of business partners are vital to achieving a sustainable society. NSD visits its business partners regularly to hold dialogue with senior management so as to gain their understanding about our approach to sustainable procurement and request their active involvement in our sustainability activities.
In addition, we have established the Sustainability Procurement Guidelines to clarify our approach. We are also working to inform business partners about our approach to sustainability through a dedicated contact desk.

Creating a comfortable work environment for our diverse workforce

NSD is also working to foster workplaces that are comfortable and offer diverse work styles for our business partners, too, in much the same way as our own employees.
During the pandemic, we quickly expanded our network equipment for remote connections to establish a telework environment accessible also to business partners.
We are working to prevent long working hours by sharing working hour data with the managers of our business partners and discussing ways to increase the efficiency of business processes. Each procurement department uses an IT system to carefully monitor the working hours of dispatched workers in particular to ensure compliance with Article 36 of the Labor Standards Act.

Training support for business partners

We recognize the need to constantly improve IT skills in the supply chain in order to continuously provide high-quality products and services to our customers. NSD offers the same IT training programs provided to its new employees to the new employees of its business partners, too, to help enhance their IT skill level.

Rigorous information security countermeasures with business partners

As we work with many business partners, we are strongly aware of information security and recognize that ongoing countermeasures are needed to maintain a sustainable supply chain.
NSD assesses new business partners based on its Information Security Policy to make sure that they have an appropriate information security management system in place. If they fail to satisfy our requirements, we may refuse to do business with them.
Additionally, every year we provide information security training to our business partners to foster understanding of and ensure compliance with our Information Security Policy.