Supply chain management

We believe strengthening our relations of trust with our suppliers for the sake of mutual growth is important. We emphasize the development of stronger partnerships through the involvement of our suppliers and by responding to the expectations and demands of society across the entire supply chain.

Approach to Our Suppliers

■Anritsu Basic Rules of Procurement and Requests to Our Business Partners

To fulfill its social responsibility in the future, Anritsu believes it must develop activities across the supply chain including our business partners as well as within the Group. In January 2006 we revised our Basic Rules of Procurement and also clearly stipulated transaction-related requests for our business partners. In fiscal 2007, we worked to develop a unified policy and requests for cooperation to be shared by all procurement locations of Group companies in Japan and abroad. In fiscal 2009, we add environmental considerations to our Basic Rules of Procurement.

■Basic Rules of Procurement

1. Selection of suppliers and partners

Anritsu always keeps the door open to new potential suppliers and partners inside and outside Japan, in a spirit of fairness and harmony. Anritsu objectively selects suppliers and partners based on proper standards - focusing on quality, price, delivery schedules and environmental measures.

2. Partnership

Anritsu builds mutually beneficial relationships with all suppliers and partners through sound business practices.

3. Compliance and secrecy protection

Anritsu conducts business in full compliance with relevant laws, and does not disclose information acquired through business with suppliers and partners to any third party without these suppliers' and partners' prior consent.

4. Activity based on ethical concepts

Personnel involved in procurement keep in mind at all times the importance of performing assignments fairly, free of personal interests with suppliers and partners, while maintaining sound relationships with these parties.

5. Considerations of human rights and labor

Anritsu respects human rights and promotes industrial hygiene, safety and security, and requests that suppliers and partners agree to this policy and promote these activities as part of their supply chain operations.
Anritsu may reconsider relationships with suppliers and partners if their business operations are linked with human rights violations, such as the use of child labor, racial and sexual discrimination, etc.

6. Environmental considerations

Anritsu stipulates Green Procurement Guideline and promotes green procurement by purchasing parts and materials that have been proven less damaging to the environment.

■Requests

1. Observance of laws and social norms

Observance of relevant laws, prohibition of child labor, forced labor and cheap labor; and prohibition of discrimination.

2. Environmental considerations

Realization of environmental measures in line with Anritsu's Green Procurement Guidelines, environmental requirements, etc.

3. Ensuring good quality, supply at fair prices and maintenance of delivery schedules
4. Preventing leakage of secret information and respect for intellectual property rights
5. Prompt response to contingencies and timely, appropriate information disclosure

Recognizing the need to develop CSR activities throughout the supply chain, Anritsu Corporation asks that business partners gain an understanding of the Basic Rules of Procurement and the Requests described above through such activities as budget briefing sessions and letters of request from executive officer. In fiscal 2008, the company drew up audit sheets in both Japanese and English for a CSR audit of business partners. Anritsu is steadily developing the systems for CSR audits in addition to quality and environmental audits.

Approach to Business Continuity Plans (BCP)

The SCM (Supply Chain Management) Headquarters formulated a business continuity plan (BCP) focused on the supply chain. Under this plan Anritsu Corporation in Atsugi, Kanagawa Prefecture, will work together with Tohoku Anritsu Co., Ltd. in Koriyama, Fukushima Prefecture in the event of disaster or serious accident. The plan also incorporates a previously designed organizational structure, the identification of key operations and projected risks and damage.