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CSR(Corporate Social Responsibility)

Hitachi

Stepping Up Global Procurement and Reinforcing CSR in the Supply Chain

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Shinichiro Omori
Vice President and Executive Officer,
General Manager of Corporate
Procurement Division, Hitachi, Ltd.
(As of March 31,2014)

The Hitachi Group is accelerating global procurement to lock in a stable supply of materials and to boost cost competitiveness for global business expansion. At the end of fiscal 2012, we have 25 overseas procurement offices, primarily in emerging countries. As well, regional chief procurement officers have been appointed for North America, Europe, China, and the rest of Asia to bolster our procurement management. We have held briefings in China and Eastern Europe to explain our procurement guidelines, while building partnerships and cultivating new suppliers. To improve training for local staff, we are adding CSR procurement education to our procurement skills training.

We have established the Hitachi Group Procurement CSR Committee to deal with increasing potential risk, and as a way to share procurement policy and programs Group-wide. The committee selects suppliers, mainly outside of Japan, for CSR monitoring. In fiscal 2012, as part of our drive to further reinforce supply chain risk management for global procurement, we performed supplier audits outside Japan, based upon the results of this monitoring.