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Supply Chain

In order to succeed in our business objectives, we work closely with suppliers to ensure our procurement activities embody Fujitsu’s corporate CSR values. Fujitsu’s procurement policy describes the principles and procedures that govern our procurement activities. The policy references, and is governed by, our corporate Code of Ethics and Global Business Standards.

Through effective supply chain management, we aim to ensure that suppliers share our environmental and social values, and that we meet our obligations to them in sourcing ethically and responsibly. This practice delivers long term benefits in compliance, risk and value resulting in improved partnerships, reputation and results.

Ensuring fair assessment and selection of suppliers

We aim to provide opportunities on an equal basis to a wide and diverse range of suppliers. We include environmental and social factors in our supplier selection process, using our supplier pre-qualification questionnaire to gather environmental, human rights and wider sustainability information. The results of the questionnaire are considered alongside more traditional business criteria in our decision making process.

SMEs

At the start of 2013, small and medium sized enterprises (SMEs) accounted for 99.9% of all private sector businesses in the UK and 48.1% of private sector turnover. It is important that Fujitsu is able to leverage the resources, expertise and innovation these organisations can bring to our supply chain. We engage positively with SMEs across our supply base, selecting them on their ability to fulfil a requirement regardless of their size, demographic or social make-up. We follow a consistent, structured and transparent due diligence process which we are continuously seeking to improve.

To bring our principles and values to life, our SME engagement programme was launched in 2013 . This programme sets out how we work to remove barriers to entry and foster collaborative relationships with SMEs. We have also launched an SME Charter and signed up to the BITC Access Pledge to further solidify our commitments to delivering our SME strategy.

As of August 2013, our active supply chain includes 772 UK-based SMEs, representing 47% of our active supply base. Over the last two years, 21% of Fujitsu’s spend on suppliers has been with SMEs.

Communicating and working collaboratively with suppliers

Using a category management approach, we work to develop appropriate relationships to ensure our commercial and social objectives are achieved. Key initiatives include:

We have also launched an audit of our supplier base, collecting basic information in preparation for supplier review and site visits. CSR performance will be a key part of this activity.

  • Supply Chain Finance: Fujitsu has a supply chain finance programme which helps suppliers to improve cash flow, enabling them to track invoices and receive payment of approved invoices earlier than the contracted terms - which can be as soon as ten days after receipt of invoice
  • A collaborative approach to ensure compliance with Fujitsu responsible business standards. Where suppliers do not currently meet the minimum standards of our pre-qualification questionnaire, we can work with them to help them achieve the minimum requirement
  • We have received supplier support for a number of charitable initiatives in association with our Shelter partnership. In March 2013 Fujitsu entered a 300-strong team into Shelter’s Vertical Rush event, including 50 runners from partner organisations. Working collaboratively we raised over £71,000. We have also welcomed supplier involvement for our partnerships and other charitable causes through donated prizes, cash donations and sponsorship
  • An audit of our supplier base, collecting basic information in preparation for supplier review and site visits. CSR performance is a key part of this activity
  • The Prompt Payment Code signed up to by Fujitsu in 2012 as part of a continued commitment to building strong relationships with suppliers through fair and responsible behaviours.

ICM  - The Prompt Payment Code Approved Signatory

Trading For Good

Trading for Good is a new digital platform championing the good work of the UK’s small businesses. By capturing the social value they create, and giving them a forum for communicating that social value, Trading for Good encourages these businesses to do even more for the community.

Fujitsu is a founding partner of Trading for Good. We have encouraged our suppliers to be among the first to sign up to this free online service, and have collaborated with Trading for Good to produce a report on the social value of small businesses. The report is a profile of the social good created by some of the SME suppliers in the Fujitsu supply chain.

Supply Chain Targets

Management Target Progress Indicator Status Target FY13/14
Complete 20 audits of Fujitsu's top suppliers including CSR aspects. Six Audits have been completed with another five planned for the completion in Dec 13 and a further nine to be completed in Jan 14. Below Track Re-baselined to January 2014 (previously December 2013)
100% of new suppliers to complete the CSR questionnaire. The CSR questionnaire has been built into our pre-qualification questionnaire and eSourcing platform. All new suppliers that contract with Fujitsu must complete this. On Track  
50% of supplier base to be Small or Medium Enterprises (SMEs). Launch of our SME engagement programme, SME Charter and integration into our category strategies we aim for this percentage to increase over the next 12 months. Below Track 50%
To improve the accuracy of recording employee time spent volunteering to enable more effective management of employee volunteering. Time sheet coding now allows the team to record the number of hours spent on volunteering, by activity and business line. Achieved