Establishment of a global procurement center

In fiscal 2006, OMRON set up a Global Procurement Center to reinforce global procurement and purchasing functions. This organization consists of the Global Procurement Strategy Department, tasked with formulating a global purchasing strategy; the Cost Management Innovation Center, responsible for cost planning in the product development stage for reinforcement of purchase functions; the SCM Process Innovation Center, in charge of strengthening supply chain management; and the China Purchasing Center, to handle centralized purchasing for China.

OMRON believes this new structure will help the company strengthen not only purchasing operations but also CSR practices in the purchase/procurement process for the OMRON Group. For the future, OMRON plans to establish a centralized purchasing center in regions other than Japan and China and expand its network to promote CSR procurement* at the global level.

* CSR procurement refers to efforts to extend a company's CSR commitment to cover purchasing and procurement processes, while requiring suppliers/ business associates to practice CSR. Requirements include legal and regulatory compliance; forbiddance of forced labor and child labor; respect for human rights and diversity; forbiddance of illegal trading; and appropriate management of chemical substances and observance of regulations related to substances contained in products.