Purchasing Policy of Nikko Chemicals
As NIKKOL GROUP provides specialty chemicals to customers all over the world, we are focused on compliance with laws and regulations, as well as fulfilment of corporate social responsibilities together with our business partners. We implement activities to protect the environment and improve traceability of the supply chain, focusing on cooperation with RSPO (*1) and ASD (*2), saving energy and reducing waste.
Our purchasing policy aims to exceed our customers’ expectations. In order to realize our goals, Nikko Chemicals created the following guidelines concerning fair and mutually beneficial business with domestic and overseas suppliers.
- ※1 RSPO: Roundtable on Sustainable Palm Oil
https://rspo.org/ - ※2 ASD: Action for Sustainable Derivatives
https://sustainablederivatives.org/
Currently society and consumers demand that not only our company, but also the whole supply chain takes steps to fulfill globally acknowledged social responsibilities. In order to meet these demands, we ask and expect our business partners to comply with the following matters.
- Legal compliance.
- Compliance with regulations, obtaining necessary certifications, and addressing environmental issues.
- Highest standards of quality.
- Stable supply and proper packaging.
- Announcements of changes.
- Technological cooperation.
- Clear transaction conditions.
1. Legal compliance.
Not limited to the examples listed below, we ask our suppliers to comply with all laws and social norms that apply in the regions and countries in which they do business, and engage in fair transactions.
- Labor standards and regulations.
- Environmental laws.
- Patent laws.
- Antitrust laws.
- Subcontract laws.
- Laws and regulations regarding safety and hygiene of the working environment.
- Prohibition of discrimination based on race, gender, or age, and respect for diversity.
2. Compliance with regulations, obtaining necessary certifications, and addressing environmental issues.
Not limited to the examples listed below, we expect our supply chain to comply with global regulations and certifications required by customers / consumers. In addition, we ask all business partners to proactively address environmental issues, develop business in an environmentally friendly manner, and cooperate with us in monitoring the traceability and sustainability of the supply chains.
- The Japanese Standards of Quasi-Drug Ingredients (JSQI).
- REACH registration (EU).
- NMPA registration (China).
- Certifications regarding sustainability of plants and feedstocks (RSPO, RTRS, COSMOS, etc.)
- Religious certifications (HALAL, KOSHER, etc.)
3. Highest standards of quality.
We are always focused on procuring raw materials and ingredients that meet the product standards required in each region and country, as well as raw materials that meet our quality requirements.
4. Stable supply and proper packaging.
We expect our suppliers to have clear business continuity plan (BCP), provide regular updates on changes in production schedule due to repairs, maintainance or replacament of manufacturing equipment. We recommend to consider corporate product liability insurance. We expect our suppliers to actively engage in dialogue regarding optimization of delivery conditions (schedules, shipping methods and costs).
Additionally, if our customer refuses to accept the product due to damages, such as a dented or disformed packaging or a dirty label, we often need to discard the material, creating unnecessary waste. In order to reduce the burden on the environment, in addition to ensuring a stable supply, we ask that you use appropriate packaging and actively consider optimization of packing materials and pre-shipment procedures.
5. Announcements of changes.
In case of any changes related to the product supplied to us, such as price revisions, changes in specifications or discontinuation of production, please contact us immediately.
If there are any changes to the Safety Data Sheet (SDS), Certificate of Analysis, product label, packaging, etc., please contact us with the official announcement before making any changes.
6. Technological cooperation.
Please provide us with information on new materials and trends, as well as new technologies and innovations. We are actively interested in evaluating and adopting innovative and original technologies introduced by our suppliers.
7. Clear transaction conditions.
Before starting business we ask suppliers to conclude a basic transaction agreement.
Please contact our purchasing staff for a template of the agreement.
NIKKOL GROUP always aims to maintain open relationships with our business partners through regular information exchange. We strive to build relationships based on the spirit of cooperation and trust with our suppliers, and with your support, we will proactively promote this purchasing policy in order to maintain and grow our mutual business.