Supply Chain Management

The Fujifilm Group develops business activities in the four segments of Healthcare, Materials, Business Innovation and Imaging, and is working to contribute to solving social issues through the value chains of these diverse businesses. As a global company, we distribute a range of products to customers across the world, procuring numerous materials and components for such products. We believe that we are responsible for not only ensuring the quality and safety of our products, but also appropriately managing the supply chain of materials and components used in our production. In response to recent increases in social demands, we are keen to promote sustainable procurement activities across the entire supply chain of the Fujifilm Group including our suppliers. The scope of this activities covers the global environment; ethics; and work environment of those working within the supply chain including their human rights, health and safety.

Under a partnership with our suppliers based on mutual understanding and trust, the Fujifilm Group aims to build a more robust supply chain through sustainable procurement that reduces business risks in the supply chain and increases the competitiveness and corporate value of all parties in the chain.

The Fujifilm Group's policy and rules concerning sustainable procurement are described below.

The Fujifilm Group manufactures a wide range of products, including chemical products; functional materials; and medical, precision, optical and office equipment. Our major production sites are located in Japan, Americas, China, the Netherlands and Vietnam.

We have some 5,500 tier 1 suppliers across the world from which we procure production materials. We have identified approximately 2,000 critical suppliers, which accounts for almost 36% of our tier 1 suppliers. Critical suppliers refer to those who are significantly important for the Fujifilm Group’s competitiveness and business continuation based on criteria concerning procurement amount and supply volume, substitutability of the suppliers themselves or the items they provide, and possibility of business continuity. The percentage of procurement amount by region is as follows: Japan 47%; China 24%; the Americas 13%; Europe 9%; and Asia and others 7%. The Fujifilm Group also actively procures from local suppliers. The percentage of local procurement in China is 85%, and in Asia and other areas it is 67% (as of the end of March 2023).

The Fujifilm Group pursues optimization of production and procurement process in all businesses in order to manufacture ever better products and offer them at appropriate prices. We are promoting our procurement activities by continually improving the following three points from the viewpoint of supply chain sustainability.
(1) Quality
(2) Cost
(3) Delivery

The Fujifilm Group bears a variety of sustainability risks because we conduct business with various suppliers of different regional characteristics for our diversified businesses and products. Further, social demand for companies to pursue CSR is also increasing as a part of the ever-changing business environment.

Taking account of such situations, we are working to maintain sustainability-conscious procurement by incorporating CSR-based assessments when choosing a supplier and in periodic evaluations. In general, labor disputes tend to occur relatively frequently in Asian countries other than Japan. For this reason, and due to the rapid tightening of environmental regulations propelled by society, factories in Asian countries have a higher risk of operational cessation. To avoid such risk, the Fujifilm Group focuses on sustainable procurement in Asia, including China.

The Fujifilm Group’s pursuit of sustainable procurement is not only to avoid risks, but also for the positive benefits it brings. We believe that respecting the human rights of workers in the supply chain increases productivity and moral action, which in turn lead to the provision of better products and services, as well encouraging innovation. We aim to develop together with our suppliers by encouraging them to take initiatives in such activities to spread such positive effects.

Collaborating with FUJIFILM Corporation and FUJIFILM Business Innovation Corp., the ESG Division and the Procurement & Equipment Manufacturing Division of FUJIFILM Holdings Corporation formulate policies and plans for the Fujifilm Group's sustainable procurement. This is carried out under the monitoring of FUJIFILM Holding’s director and corporate vice president. In fiscal 2021, the CSR Procurement Promotion Group (now Sustainable Procurement Group) was established within the Procurement & Equipment Manufacturing Division in FUJIFILM Holdings in order to expand sustainable procurement across the Group. Critical management issues concerning the sustainable procurement policy and planning are approved and adopted by FUJIFILM Holdings’ ESG Committee, chaired by the president of FUJIFILM Holdings.

The matters approved and adopted by the ESG Committee and the policies and plans formulated by FUJIFILM Holdings are disseminated to the ESG and procurement divisions of the Group companies and implemented by each company. The sustainable procurement promotion structure and roles of the organizations within it are as follows.

Fujifilm Group accepts any type of enquiry, including consultations and conplaiants from suppliers at the website of “Contact regarding Sustainability”

The Fujifilm Group is an official member of the Japan Center for Engagement and Remedy on Business and Human Rights (JaCER)^*1 since June 2024.
The JaCER grievance form is available to all the people, entities, or groups in the Fujifilm Group value chain, to report actual or suspected human rights violation.

• *1 JaCER provides a non-judicial platform for grievance redress and acts in a professional capacity to support and promote redress of grievances by its member companies.