Basic Philosophy of Material Procurement
JR Central procures materials from suppliers both domestically in Japan and internationally from other countries in accordance with the following philosophy.
1Procurement prioritizes the maintenance of safe and reliable transportation
The maintenance of safe and reliable transportation in the railway business is given top priority. In the procurement of materials also, we will seek out materials both domestically and internationally that contribute to maintaining safe and reliable transportation.
2Procurement of high quality materials
To maintain safe and reliable transportation to which should be given the highest priority in our railway business, we will procure both domestically and internationally higher quality materials in terms of reliability, technological level and the various other properties demanded of each material.
In addition, we believe that it is necessary to seek out even higher quality materials through efforts which contribute to maintaining and improving quality.
3Procurement of materials at reasonable prices
Because safe and reliable transportation is required in the railway business and we operate in a very competitive business environment, JR Central will demand good materials at reasonable prices both domestically and internationally in our materials procurement.
4Pursuit of suppliers possessing a supply system capable of strictly adhering to contractual delivery deadlines
In order to maintain safe and reliable transportation, to which the highest priority is given in our railway business, it is very important that supplies strictly adhered to delivery deadlines agreed to in contracts. We will seek out both domestically and internationally suppliers who have arranged a supply system that enables JR Central to be supplied with the materials that JR Central needs in the required amount when necessary, and without fail.
5Pursuit of suppliers capable of building a continuing and stable business relationship
In the railway business where stable operation is required over the long term, it is important to be able to consistently procure the materials required for the future. Therefore, if it becomes difficult to supply the materials that we require regularly for operation of our railway business, it is necessary that such information about the difficulty of supply be provided promptly to JR Central and that suggestions be offered for substitute items or whatever other response may be necessary to address such a situation. We will seek out both domestically and internationally suppliers capable of building a continuing and stable business relationship.
6Pursuit of suppliers capable of supplying satisfactory after-sale care regardless of whether such service is needed during normal or emergency times
In order to maintain safe and reliable transportation to which the highest priority is given in our railway business, it is necessary that suppliers provide sufficient after-sale care, including reliably performing maintenance. Further, in the event that an emergency arises in connection with a material, JR Central needs the supplier to respond rapidly including providing support information on technical aspects, conducting inspections, determining the cause of the emergency, and cooperating with JR Central's investigation. We will seek out both domestically and internationally suppliers capable of supplying such satisfactory after-sale care regardless of whether such service is needed during normal or emergency times.
7Pursuit of suppliers capable of adapting to diverse usage environments
Materials required by the railway business are used in environments, which differ according to line section in terms of weather conditions, landscape and so on. We will seek out both domestically and internationally suppliers capable of supplying materials that satisfy specifications and functional requirements tailored to diverse usage environments rather than those suited to uniform conditions.
8Establishment of a satisfactory communication framework
In order to procure better materials, we believe that it is important to communicate daily with the entire procurement supply chain, including our suppliers, and that it is necessary to build a strong relationship of trust by collaborating on improvements.
9Appropriate handling of information
In order to maintain safe and reliable transportation, to which the highest priority is given in our railway business, we believe that it is necessary to appropriately manage important information for railway operation and maintenance as well as patent rights and utility model rights with our suppliers. In addition, we manage personal information properly.
10Fair and equitable transactions
In order to maintain safe and reliable transportation, to which the highest priority is given in our railway business, JR Central believes it is important for us to constantly seek out both domestically and internationally the use of even better materials and transactions with new companies. Our material procurement procedures treat companies located both inside and outside Japan equally and non-discriminatorily in terms of the details and conditions of various inspections, contract procedures as well as other conditions required of our suppliers during such procedures. In addition, regarding the provision of information for technical requirements or testing methods required for the inspection of the quality and technology, regardless of whether the company is located inside or outside Japan, we will treat both the same.
As stated above, we select suppliers, setting compatibility of our "Basic Philosophy of Material Procurement" and "What is Required of Our Suppliers", etc. with the details of suppliers' proposal, and economic rationality (such as the prioritization of maintaining safe and reliable transportation, high quality, reasonable prices, a supply system capable of strictly adhering to contractual delivery deadlines, a continuing and stable business relationship, and satisfactory after-sale care regardless of whether such service is needed during normal or emergency times), as a point of assessment.
11Pursuit of suppliers given consideration to reducing the environmental burden
JR Central has actively promoted efforts for further improving the railway's special quality of placing little burden on the earth's environment. As part of that effort, we engage in green procurement, which prioritizes the procurement of earth-conscious materials.
12Compliance with relevant laws and regulations
We comply with all relevant laws and regulations as a railway operator retaining a highly public nature and social mission.
JR Central has no relationships at all with anti-social forces or groups.
13Providing and updating website information on procurements
JR Central recognizes the importance of providing information on procurement (such as procurement methods applied, requirements for the selection of suppliers, selection criteria for goods and, past and planned procurement) to prospective suppliers wishing to do business with us in order to procure higher quality and more reliable materials at a reasonable price both domestically and internationally, with satisfactory after-sale care regardless of whether such service is needed during normal or emergency times.
Therefore, we will continuously display information on "Basic Philosophy of Material Procurement", "What is Required of Our Suppliers", "Material Transaction Flowchart", "Procurement Results and Main Materials Procured" in our website with regular update in English and Japanese.