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Supply Chain Management
It is becoming increasingly necessary for companies to address social issues such as human rights and the environment, and there is a need to make the entire supply chain sound and resilient. The Yamato Group conducts its business operations with the support of numerous business partners. We believe that it is our social responsibility to address sustainability issues throughout the supply chain for the development of a sustainable society.
Sustainability Metrics and Targets (2024–2026)
- Obtain agreement from 100% of major business partners to observe the Code of Conduct
- Implement corrective measures and revision for major business partners
- Implement education to increase communication capabilities with business partners, targeting all employees
For detailed targets and results, please refer to Sustainability Strategies, Goals and Results.
Promotion Structure
The Procurement Department oversees all procurement operations of the materials and equipment necessary for the Yamato Group’s business activities, including the selection of suppliers, contract and order placement, transaction management, including quality and delivery schedule following the commencement of transactions, and supplier management. Furthermore, the department sets out plans and processes related to procurement, carrying out procurement using a centralized purchasing system. The CFO is ultimately responsible for managing the Procurement Department.
Approximately 60% of the Yamato Group’s business partners are responsible for handling parcels, such as transport partners and delivery partners. To ensure appropriate supply chain management, the Supply Chain Management Subcommittee, chaired by the head of the Procurement Department, holds regular discussions between the Procurement Department and the department overseeing those business partners responsible for handling parcels. This facilitates prompt collaboration between departments. The Supply Chain Management Subcommittee’s activity plans and the status of their progress are regularly reported to the Social Promotion Committee, chaired by the President. This is then reported to the Board of Directors.
Supply Chain Management Policy
Yamato Group Responsible Procurement Policy
The Yamato Group has established the "Yamato Group Responsible Procurement Policy" in order to conduct responsible procurement that takes the environment and society into consideration together with business partners based on fair, equitable and honest transactions. The policy has been approved by resolution of the Board of Directors and shows the Yamato Group's commitment to sustainability actions.
Yamato Group Responsible Procurement Policy[PDF:356KB]Yamato Group Business Partner Guidelines
The Yamato Group expects its business partners to meet not only economic standards but also social, ethical, and environmental standards, as well as standards related to corporate responsibility. Details of these expectations are clearly set forth in the Yamato Group Business Partner Guidelines. These were set in January 2022, based on the Yamato Group’s internal regulations, all laws and regulations in the countries where we do business, and the main internationally-recognized standards regarding sustainability.
We ask all our business partners to refer to these guidelines whenever we initiate a new transaction and when the guidelines are revised.
Declaration of Partnership Building
Yamato Transport endorses the aims of the Council on Promoting Partnership Building for Cultivating the Future, promoted by the Cabinet Office of Japan and the Small and Medium Enterprise Agency, and has announced our Partnership Establishment Declaration.The Declaration of Partnership Building aims to create new partnerships by advancing collaboration, co-existence, and co-prosperity between customer supply chains and companies who try to create value.
Declaration of Partnership Building (In Japanese only)[PDF:157KB]Supply Chain Management Initiatives
The Yamato Group strives continuously to enhance the level of its activities, based on the Yamato Group Business Partner Guidelines, while giving consideration to business partner surveys , and international guidelines on issues such as human rights, labor, and the environment.
For major business partners in particular, we take steps to have them understand the necessity of our sustainability initiatives by raising awareness and providing support through communication with the responsible departments, aiming to enhance the level of sustainability initiatives throughout the supply chain. When serious risks are recognized through the business partner surveys, we request that they make improvements on the issues and provide support.
Approach to Major Business Partners
The Yamato Group selects its major business partners each year in each department. In the fiscal year ended March 31, 2024, we selected 84 companies as major business partners. Selection is based on the following criteria.
・Being irreplaceable
・Supplying products and services that are essential to business continuity
・Having a large amount and value of transactions
・Level of industry-specific ESG risks
Implementation of Briefings for Business Partners
Once a year, Yamato Transport implements Supply Chain Management Briefings about the Yamato Group’s ideal supply chain management for major business partners, with the aim of forming a common understanding. Centered mainly on the Yamato Group Business Partner Guidelines, the briefings cover topics that have recently been gaining global attention, such as human rights and environmental responses, as well as the Yamato Group’s sustainability initiatives.
Business Partner Surveys (Monitoring)
Starting in the fiscal year ended March 31, 2024, the Yamato Group has received responses to regular sustainability surveys from its 84 major business partners in order to assess and evaluate the status of its business partners’ initiatives on sustainability.
The survey is made up of questions aligned with the Yamato Group Business Partner Guidelines. By having its business partners answer the survey, the Group obtains their agreement to collaborate on working toward sustainable growth and realizing a sustainable society.
Support for Business Partners
Feedback on Results of Business Partner Survey (Monitoring)
We provide benchmarking results to business partners who respond to our Business Partner Survey (monitoring). We share feedback with the relevant department through dialogue, enabling each of our business partners to confirm their strengths and weaknesses in sustainability. We provide resolutions to areas identified as weaknesses, driving continuous performance improvement.
Provision of Frameworks
Yamato Group business partners comprise a large number of small and medium companies. For business partners who find it difficult to establish complaint handling systems and formulate business continuity plans (BCPs) on their own, the Yamato Group provides frameworks and offers support to supplement their specialized knowledge.
Education on Sustainable Procurement
The Yamato Group considers it essential for procurement officers to recognize social and environmental issues in the supply chain if we are to realize a sustainable company across the entire supply chain. Led by the departments responsible for dealing with our major business partners, we have established a supply chain management task force, which examines our business partner surveys and holds study sessions regarding sustainable procurement.
Strengthening Collaboration with Business Partners
Business Partner Questionnaire Surveys
The Yamato Group conducts an annual questionnaires of approximately 5,500 business partners, including outsourcing providers for delivery, suppliers of equipment and supplies, and others, to confirm the status of our dealings. The results are reported to management and we work to maintain good relationships with our business partners by undertaking improvement activities and strengthening communication based on issues identified.
Consultation Center for Business Partners
In addition to the annual business partner survey, the Yamato Group has also established a consultation center to receive requests for consultation on a day-to-day basis. We strive to identify and resolve problems at an early stage. At this consultation contact desk, we protect the privacy of those using the consultation center and ensure that they are not treated unfairly due to the content of their consultations.
Communication with Business Partners
Partner Stores / Agencies
Around 180,000 stores nationwide (including convenience stores and shops) act as important partners connecting customers with Yamato Transport.
Yamato Transport conveys information on the Group's business activities, new services, and local information through daily visits to stores. We also strive to deepen the level of two-way communication and improve our services, such as by listening to opinions and requests of customers, who use TA-Q-BIN, received from stores.
Transportation Partners
Yamato Transport outsources part of its trunk-route transportation and other operations to general cargo trucking companies. We conclude outsourced service agreements with all transportation business operators.
We regard our transportation partners as partners in carrying and delivering important parcels to customers as a team. Based on this idea, we actively provide safety measures and safety training to ensure that our subcontractors implement safety first, which is the top priority in the logistics field.
Furthermore, given issues such as the declining working population, rising fuel prices, and workstyle reforms for drivers, we have established a dedicated division to see that we deal with appropriately, mainly with transportation partners.
Delivery Partners
Yamato Transport outsources some of its last-mile delivery operations to delivery partners, mainly concerning products delivered for e-commerce. We aim to create permanently-sustainable business with our delivery partners, building sound business relationships with them and two-way communication through regular meetings in an effort to provide stable delivery quality.