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Creating value with procurement partners

In the current situation, where it is difficult to predict the future of society and the environment,
new technologies and services are appearing one after another in various fields.

In response to increasingly complex changes in the environment, Hitachi is striving to provide solutions that address customer needs and,
with the aim of co-creating value, we are working together with our procurement partners in initiatives
to increase customer value, social value, environmental value, and corporate value.

Every business that provides products and services to customers has both positive and negative impacts (risks).
We are also going to work on risk management, which minimizes losses, against uncertain risks that affect corporate activities.

Value creation initiatives

Pursuing value creation from the customer's perspective

Pursuing value creation from the customer's perspective

All products and services have two aspects: functionality and value. Functionality refers to performance and specifications, and constitutes the features and roles of the product itself. Value is the satisfaction obtained by having a product and the utility obtained by using it.

It is important to strive to increase customer value and achieve business goals by understanding customer value in relation to the set of needs and functionality of products or services, and customer costs, and by effectively using management resources. Hitachi Group defines VEC (Value Engineering for Customers) as value creation initiatives. VEC is a means of creating value (providing solutions that address customer needs) from the customer's perspective of "supporting people's happiness."
As a corporate activity to provide better functionality and value that achieves SDGs (Sustainable Development Goals), we are promoting co-creation activities to create value with the Hitachi Group and related procurement partners.

 "Realizing enriched lifestyles" by creating customer value

"Realizing enriched lifestyles" by creating customer value

The purpose of creating value through VEC is to contribute to society by creating customer value, realizing enriched lifestyles, and solving environmental and social problems. Through organizational activities throughout the entire value chain related to value creation, we are striving to create various types of value and to solve problems.

  • By creating customer value in a sustainable manner, we realize enriched lifestyles.
  • By creating social and environmental value, we contribute to the stability of employment and lifestyles, contribute to the public interest, and pursue environmental maintenance.
  • We provide stable and sustainable products and services in business activities throughout the entire value chain.

Providing value through supply chain management

Providing value through supply chain management

A supply chain is a process of providing products and services and providing created value to people and society. Supply chain management should be conducted in a way that meets the needs of business areas and industrial sectors. This can be achieved through business collaboration with procurement partners. We implement supply chain management to optimize the entire supply chain ranging from materials and parts procurement, to product manufacturing, inventory management, sales, and the delivery and transportation of products.

SDGs Activities with Procurement Partners

Hitachi has been working to realize a sustainable society through its social innovation businesses by promoting the social innovation businesses based
on a "Green, Digital, and Innovation" approach and practicing sustainable management with sustainability at the core of its business strategy.

Based on its comprehensive understanding of social issues, Hitachi has identified six topics that are material to its work from a sustainable perspective.
Based on this materiality, Hitachi is managing sustainability measures and discussing new initiatives.

vec activities

Procurement and VEC activities that solve social and environmental issues and contribute to SDGs

Going forward, with the focus on solving social issues and based on mutual understanding and trust with our procurement partners, we will promote VEC activities in various areas related to the entire value chain.

Focusing on the following points, we will undertake initiatives to address issues material to Hitachi.

  1. Reducing costs common to society and our companies, and reducing environmental impacts
    We will reduce "common costs" that are costs for both the company and society, and reduce environmental impacts.
  2. Creating shared value for the environment and society
    We will engage in CSV (Creating Shared Value), where the value can be shared with society, and will create trust and empathy from customers and society.
  3. Creating corporate value
    With the aim of contributing to SDGs, society, and the environment, we will apply a practical cycle to create corporate value in a sustainable manner.