Fair and Transparent Selection of Suppliers
Promoting Open Procurement
As we state in our Procurement Policy, we open our doors equally to all suppliers worldwide and conduct business in a fair and impartial manner, and have instituted our Open Procurement policy to make a broad appeal to suppliers not already in our network.
Canon launched the Suppliers Proposal Site within its main corporate website in 2001, with the purpose of soliciting marketing information, including products handled and manufacturing consignment information, from companies worldwide (excluding intellectual property such as designs, ideas and inventions). Products proposed on this site are now being used in Canon products. Of 103 proposals received from worldwide in 2010, four have been designated as candidates and are under consideration.
Mechanism for Supplier Selection
Before initiating transactions with a new supplier, Canon assesses whether it satisfies the Company's independent criteria with respect to global environmental protection, parts supply system and financial position.
In particular, in the environmental field, satisfying the Canon Green Procurement Standards is a condition for doing business, ensuring that green procurement is practiced for parts and materials used in our products.
Canon also conducts regular evaluations of existing suppliers. Based on the results of these assessments, Canon registers recommended suppliers on a Supplier Panel, from which operational sites and Group companies then make their selections.
We have steadily expanded our supplier evaluations to worldwide, and in 2008 introduced the system in Asia, where many of our important production sites are located.
We will continue to analyze the strengths and weakness of each supplier with the aim of growing our businesses together.
Mechanism for Parts Selection and Procurement
Education of Supplier Evaluators
To ensure fair, impartial and transparent assessments of suppliers, Canon has carried out training to cultivate supplier evaluators since 2005.
Designed around evaluator assessments that compensate for variations among evaluators, the training program aims to foster knowledge using samples of hypothetical suppliers. We conduct follow-ups with trainees from previous years via the Canon Intranet to maintain or raise their evaluation levels.
