Supply Chain Management

CSR for Business Partners CSR for Business Partners

SoftBank will continue to develop together with our suppliers.

SoftBank has always chosen suppliers that share our vision toward social contribution, working together to create innovative services offering new lifestyle propositions.

“We foster relationships of trust based on mutual understanding, and improve by learning from each other for the benefit of our customers.”
“We maintain fair relationships with suppliers and provide an environment where customers can choose quality products and services with confidence.”
“We share a passion for contribution to society through our products and services, and pursue innovation together with our suppliers.”

SoftBank evolves together with its suppliers.

Basic policy

Procurement Policy

In order to maintain fair and positive relationships with suppliers, the Procurement Policy of SoftBank Corp. stipulates the following eight items: “provision of fair opportunities for competition,” “selection of suppliers based on rational and clear criteria,” “compliance with laws,” “management of confidential information provided by suppliers,” “mutual confidence-building with suppliers,” “environmental conservation,” “prohibition of mixing private relations,” and “CSR efforts.” All procurement activities conducted by the Procurement Department are carried out in accordance with these basic policies.

Supplier ethics and rules of conduct

In order to deal with CSR-related issues together with suppliers, provide reliable and safe products and services to customers, and conduct business activities which are trusted by society, we have established the “Supplier Ethics and Rules of Conduct” and request that all suppliers comply with these rules.

The “Supplier Ethics and Rules of Conduct” includes 14 items which consist of “Concern for the environment,” “Information security,” “Fair competition,” “Ensure quality and safety,” “Consideration for Human Rights,” “Occupational safety and health,” “Prohibition of child labor,” “Prohibition of forced labor,” “Prohibition of discrimination and inhumane treatment,” “Working hours,” “Fair payment,” “Freedom of association,” “Responsible mineral procurement,” and “Coexistence with local communities.”

Green procurement guidelines

Moreover, to contribute to the sustainable development of society, we have established the “Green Procurement Guidelines” which indicate our fundamental approach to green procurement for all of our suppliers.

These guidelines are in accordance with the contents of the “Ecology Guideline for the ICT Industry,” which was formulated by the ICT Ecology Guideline Council* in response to the proposal by the workshop concerning the ecological response in the information and telecommunications field hosted by the Ministry of Internal Affairs and Communications.

Our goal in establishing these guidelines is to promote the procurement of products which contribute to the reduction of CO² emissions.

We highly value the voluntary and proactive proposals from our suppliers and will engage in business activities with an environmental emphasis by engaging in environmental conservation activities together with the suppliers.

Climate Change

[Note]
  1. *
    Council inaugurated on June 26, 2009, by the Telecommunications Carriers Association, Telecom Services Association, Japan Internet Providers Association, Communications and Information Network Association of Japan, and the ASP-SaaS-IoT Cloud Consortium (ASPIC) to raise and further promote measures to prevent global warming in the industry

System

The General Manager of the Finance & Controlling Cost Management Division, an executive officer in charge of the Purchasing Department, is responsible for this division. In order to properly manage the supply chain in accordance with the above policies and guidelines, the Procurement Department regularly discusses with each department to ensure prompt coordination among the departments.

Supply chain strategy

Responsible procurement activities

With the management philosophy of “Information Revolution, Happiness for everyone”, We aim to be a lifestyle company that makes people's lives richer and more enjoyable. In order to achieve this goal, we have established a procurement policy to maintain fair and good business relationships with our suppliers. This procurement policy is important not only for achieving our management philosophy, but also for managing procurement costs, quality, delivery time, and supply stability. Based on this policy, we have identified the following five items as particularly important in our supply chain strategy: 1) Provision of fair opportunities for competition, 2)Selection of suppliers based on rational and clear criteria, 3) Compliance with laws, 4) Management of confidential information provided by suppliers, and 5) Green procurement. In addition, in order to promote responsible procurement activities, we have set the following two items as important ESG targets.

Respect for human rights and ensuring occupational health and safety

We have established the “Supplier Ethics and Rules of Conduct” in order to carry out corporate activities that are trusted by society together with our suppliers.

The Rules of Conduct stipulates such items as the prohibition of child labor and forced labor, the prohibition of discrimination and inhumane treatment and the reduction of excessive working hours, as well as the improvement of the working environment for employees. Suppliers are strictly committed to complying with the Rules of Conduct.

Environmental action guidelines
for suppliers to address
climate change
and
green procurement guidelines
for suppliers

From the perspective of global environmental conservation through our business activities, we have established the Environmental Action Guidelines and the Green Procurement Guidelines, which aim to promote the introduction of products that contribute to reducing CO2 emissions and are promoting environmentally friendly procurement activities.

Supply chain

Supply chain overview

In conducting our business activities, it is important to have relationships with various suppliers. SoftBank's supply chain is spread across various countries and regions around the world; in fiscal 2020, the supplier spending ratio by region was 53% in Japan, 33% in the Americas, 10% in Europe and 4% in Asia. The supplier spending ratio by category is 38% for handsets, 35% for service and construction, 20% for equipment (and maintenance), and 7% for others.

Supply chain overview

Supplier selection

We are reducing risks in the supply chain by establishing a PDCA cycle, which includes the establishment of the Supplier Ethics and Rules of Conduct, conducting risk assessment through the Sustainability Procurement Survey, evaluating suppliers and identifying issues, and conducting interviews with suppliers. In addition, when starting a new transaction with a supplier, we evaluate and select the supplier in accordance with our purchasing rules, and conclude a basic transaction agreement that includes the supplier's compliance with our Supplier Ethics and Rules of Conduct.

Supplier selection

Critical suppliers

Relationships with various suppliers are important when it comes to conducting business activities.

We have more than 2,000 suppliers around the world, and in our supply chain management, we identify important suppliers from the perspective of transaction volume and substitutability and conduct appropriate supply chain management as an important supplier among a wide range of suppliers.

Selection criteria

Suppliers of Critical Commodities Suppliers that handle key products and components such as radios, base stations and networks that support the core domestic telecommunications business (mobile and fixed-line businesses).
Non-substitutable Suppliers Suppliers that can not be substituted (in view of the fact that there are essentially no substitute products on the market, or that a long-term disruption of the supply chain would critically damage the core business).
Suppliers with High Transaction Volume Suppliers that have transactions above a certain amount.
Other suppliers to be considered. Suppliers whose risks, if they materialize, would have a high impact on our reputation.

Process for identifying critical suppliers

Process for identifying critical suppliers

Building a sustainable supply chain

Sustainability procurement survey

We conduct an annual sustainability procurement survey of our major suppliers in order to identify potential sustainability risks in our supply chain and take appropriate measures. We aim to achieve a collection rate of 90% or higher for the Sustainability Procurement Survey every year.

In fiscal 2020, we conducted a survey using the Self-Assessment Questionnaire (SAQ)* created by the United Nations Global Compact Network Japan (GCNJ) in 2017. After analyzing the results of the survey, we are working with our suppliers to improve their initiatives and monitor the status of any issues identified as needing improvement.

[Note]
  1. *
    The SAQ is composed of nine core items based on the 10 principles of the Global Compact, international guidelines such as ISO 26000 and CSR questionnaires for specific industries and is designed to be shared between buyers and suppliers regardless of industry.

Responsible sourcing of minerals

In order to fulfill our social responsibility in our purchasing activities, we are working with our suppliers to eliminate the use of products containing conflict minerals.

Specifically, our Supplier Ethics and Rules of Conduct stipulates that we do not use tantalum, tin, tungsten, or gold, which are sources of funding for rebel groups that commit human rights abuses in the Democratic Republic of Congo and its neighboring countries, and we require our suppliers to comply with this stipulation.

Positioning with materiality

Our materiality is linked to (4) Contributing to the global environment through the power of technology and (6) Developing a resilient management base, and we are working throughout our supply chain to contribute to solving global CSR issues together with our wide range of suppliers. We are working with a wide range of suppliers throughout our supply chain to help solve global CSR issues.

Efforts toward sophistication

Collaborate with other companies by participating in related initiatives

We are a member of the Supply Chain Subcommittee of the Global Compact Network Japan (GCNJ), and are working with companies in various industries to share practical issues related to social and environmental problems, including human rights abuses in supply chains, and to produce outputs to support their resolution, with the aim of promoting sustainable supply chain management in a wide range of industries.

Communication with suppliers

In fiscal 2020, we held a briefing session for our suppliers to reiterate our request for compliance with Supplier Ethics and Rules of Conduct and to raise awareness and promote CSR initiatives among all suppliers. In fiscal 2020, we invited 20 of our major suppliers to participate in our Supplier Ethics and Rules of Conduct to explain the contents of the code and encourage them to make efforts to contribute to the environment and society, strengthen information security, and build a system to promote fair corporate activities.

In addition, we have been conducting regular cross-divisional exchanges of opinions with major radio manufacturers, including those at the executive level, as part of our annual supplier evaluation since 2014. This is an ongoing activity in which the results of evaluations from the perspectives of technology, quality, delivery, finance, purchasing, and CSR are shared directly, and the supplier, technology, and purchasing departments work together to make improvements.

Electronic trading system

In order to promote purchasing activities, SoftBank Corp. is promoting operations using an electronic transaction system (Web-EDI). EDI * is an electronic exchange mechanism used exclusively between businesses (B to B). In fiscal 2020, the EDI order placement rate was 90%, and we are working to increase the rate to 90% or higher in fiscal 2021 and beyond.

[Note]
  1. *
    EDI is an abbreviation for Electronic Data Interchange.

Improving the skills of purchasing managers

In purchasing operations, when negotiating with various suppliers for the purpose of procuring goods, it is required to achieve continuous and stable procurement through fair, equitable and transparent transactions. In order to achieve this goal, we conduct basic training for purchasing staff (e.g., on the Act against Delay in Payment of Subcontract Proceeds to subcontractors) every year, as well as basic training for new purchasing staff, and promote the acquisition of the Certified Procurement Professional (CPP*) certification, an external qualification, to improve procurement and purchasing skills. We also provide education on Supplier Ethics and Rules of Conduct and other topics for purchasing staff, and we have incorporated goals related to sustainable procurement into personnel evaluations for purchasing staff. In the future, we will strive to acquire knowledge and raise awareness about sustainability procurement.