Basic Philosophy

The Sanki Engineering Group Code of Conduct and Action Guidelines stipulate that we promote free market competition and engage in fair, equitable, and transparent transactions with all business partners. Moreover, under the Procurement Policy, Human Rights Policy, Multi-Stakeholder Policy, and Environmental Policy, we endeavor to build trust with our business partners to jointly provide high-quality systems and services to customers.

Building Fair, Equal, and Transparent Business Relationships

Procurement Management System and Response to Procurement Risks

Sanki Engineering procures almost all of the materials and equipment used in construction work from domestic suppliers.
The role of the procurement department includes contributing to profit by reducing costs and supporting orders, building and managing procurement databases, and collecting and disclosing information on material and equipment price trends and delivery dates. The international situation has led to rising prices for materials and crude oil, and the shortage of semiconductors has further increased equipment and material prices and caused delays in delivery. In response to these challenges, we continue to strengthen cooperation with onsite staff and take action to avoid or mitigate procurement risks, such as placing orders in advance and promptly disseminating information on delivery dates across the company. We will also take necessary measures to address future procurement risks, such as rising logistics costs.

Thoroughly Ensuring Fair and Equitable Transactions

We engage in fair, equitable, and transparent transactions with all business partners in accordance with the Sanki Engineering Group Procurement Policy. Moreover, in the Multi-Stakeholder Policy, the representative director and president declares his commitment to the Partnership Building Declaration. Furthermore, we include provisions on product safety, quality control, intellectual property, legal compliance, and the exclusion of antisocial forces in our basic agreement and ask our business partners to understand and consent to these provisions.

Reporting and Consultation Desk

In order to prevent fraudulent activities and improper transactions, we operate a Corporate Ethics Hotline that is available for anyone to use. Information is provided on the Company website. In addition, we have set up and operated a portal site that can be accessed by our business partners.

Promoting Green Procurement

As part of our environmental management, Sanki Engineering procures goods that comply with Japan's Act on Promotion of Procurement of Eco-Friendly Goods and Services by the State and Other Entities (Green Purchasing Act) and confirms the aggregate result.

Raising the Efficiency of Procurement Operations

As part of our work-style reform initiatives, the Procurement Division is focusing on raising the efficiency of procurement operations in the procurement and technical departments at each site of the Facility Construction Business by encouraging the adoption of a centralized ordering method based on exchanging data with major business partners and with a one-stop procurement system* that handles everything from price negotiations to ordering operations.
In addition, we are effectively implementing DX to further improve the efficiency of procurement operations. We digitized some operations by introducing online systems in our Group for placing orders to suppliers and allowing them to issue progress billings.

*

A system in which a procurement department handles everything from price negotiations to ordering operations

Training for Procurement Staff

We provide monthly online learning and presentation opportunities for procurement staff to promote appropriate procurement activities and enhance their purchasing, negotiating, and management skills. Furthermore, we requested relevant departments within the Company to conduct training to raise awareness of compliance and sustainability, covering areas such as fair trade and respect for human rights. We also strive to develop the competence and knowledge of procurement staff through support as needed for the obtaining of registered qualifications for certified procurement professionals, construction business accountants, and fundamental information technology engineers, apart from education on fair trading and respect for human rights among other compliance and sustainability issues.

Strengthening Cooperation with Business Partners

Exchange of Views with Business Partners

We visit our major business partners and hold meetings to exchange opinions. We select the partners we visit each year according to their relative importance to our business and the monetary value of transactions.

Initiatives to Assess Business Partners

To raise quality and improve operations across the supply chain, we annually survey the status of our business partners and, as part of this initiative, assess their safety management. We pay visits to provide them with feedback on the assessment results and exchange information on improvements as needed to enhance their safety management capabilities. For new partners, we conduct a comprehensive assessment at the start of the business, using a checklist commonly adopted by all locations, which covers their financial situation, quality management, and environmental management to ensure there are no issues.

Joint Improvement Activities with Subcontractor Groups

Sanki Engineering has established subcontractor groups at each branch, branch office, and division as part of our effort to bolster our construction system. In addition to monthly liaison meetings, we implement joint labor-saving projects and hold seminars to enhance technical skills and thoroughly enforce quality management and supervision of safety and health at construction sites. Moreover, we review the status of safety and health management and offer guidance by dispatching employees to provide safety and health education as well as courses on obtaining qualifications and by conducting joint patrols.

Providing Support to Stabilize the Management of Subcontractors

In fiscal 2019, we revised the terms of payment to subcontractors with capital of under 40 million yen to make all payments in cash. Additionally, we have shortened the payment site for electronically documented payables for suppliers, including subcontractors with capital of at least 40 million yen from 120 days to 60 days starting in fiscal 2022. This is one of the financial and capital policies in the Medium-Term Management Plan "Century 2025" Phase 3.

Awards Programs

We established the Sanki Super Meister System to certify and commend foremen of Group subcontractors whose superior construction techniques have significantly contributed to elevating the quality of our construction work and also the Sanki Best Partner Program to commend subcontractors who have significantly contributed through their superior levels of management and construction skills, and for having consecutive years of zero accidents.

Initiatives for Maintaining and Upgrading the Technical Skills of Subcontractors

We offer a subsidy program for subcontractors, which is being appropriately implemented by each department. We are also promoting the creation of a mechanism for enhancing technical skills based on collaboration between Sanki Engineering and subcontractors, in which the Sanki Techno Center is also used to train new hires and midcareer employees of subcontractors. Furthermore, new hires at Sanki Engineering receive guidance from employees of subcontractors through our technical training program.