Procurement Information (Responsible Procurement)
Important Notice to Business Partners
The JAL Group has decided to change the current procurement system and introduce a new procurement system (SAP Ariba) from June in 2021 for the purpose of “strengthening compliance, operational efficiency and financial position” and promote the digitalization of transactions.
With the new procurement system (SAP Ariba), you can now quote, order, accept, bill, and pay online.
In introducing the new procurement system, we ask our business partners to obtain IDs for the new system and to register email address and bank account information for the person in charge of orders to be used in the new procurement system.
Although we are contacting you in order by email, we would appreciate it if you could let us know to the contact address below if you have not received email. We apologize for the inconvenience.
〔Contact address for JAL SAP Ariba〕
*Please note that we will continue the current transaction format for some products (flight equipment, aircraft parts, fuel, inflight meal, etc.).
Information on the SAP Ariba briefing for suppliers and video recordings of the event are listed below. Please take a look if necessary.
If you have any questions, please feel free to contact us at the dedicated contact address above.
1.Basic Operations and Pre-Configuration[6.73 MB : PDF]2.Response to the Quote(Sourcing Event)[3.21MB : PDF]3.Receive Purchase Order and Create Order Confirmation ・Ship Notice[2.50 MB : PDF]4.Creation of Invoice and Contract Reference Invoicing[3.11 MB : PDF]
*External link will open.
SAP Ariba Operating Instruction Session for SupplierOpen link in a new window
Basic Concept (with Business Partners)
The JAL Group is aware of the need to gain the cooperation and support of many business partners to operate its flights and provide products and services to customers on a daily basis. Therefore, we strive to build strong partnerships with suppliers based on mutual trust by ensuring fair and transparent procurement activities and showing our appreciation for their support, as explained below.
1. Fair and transparent procurement
When selecting business partners, we comprehensively assess a broad range of factors, such as product and service quality, costs and delivery periods, the company's reputation, ESG perspective, and sustainability initiatives. We also ensure fair and transparent procurement activities by offering numerous opportunities for domestic and international business partners to do business with the JAL Group.
2. Providing safe and secure services to our customers
To deliver peace of mind to customers when they board our flights, we cultivate a culture of safety as top priority with business partners and conduct rigorous quality management to offer the finest hospitality.
3. Promoting sustainable procurement
We work with business partners to build sustainable supply chains, including initiatives aimed at legal compliance, global environment preservation, respecting of human rights, appropriate labor practices, and fair business practices.
Dissemination of the JAL Group Supplier Code of Conduct
Although the JAL Group has observed the JAL Group Supplier Code of Conduct since April 2016, given the recent global focus on supply chain management, we significantly revised the code in July 2019. The revised code covers eight key areas on the primary premise of ensuring safety: (1) quality assurance, (2) human rights and labor, (3) safety and sanitation of work environment, (4) global environment, (5) business management, (6) expansion to suppliers, (7) contribution to regions and society (8) establishment of internal promotion systems. Commentary on social background and examples of specific initiatives have also been added. As in the past, we ask all our business partners to understand and comply with the SDGs, and aim to build a sound supply chain that considers sustainability in order to achieve the SDGs through ESG management.
JAL Group Supply Chain
The JAL Group conducts business with approximately 10,000 companies around the world with a purchase amount totaling approximately 510 billion yen (as of March 2021). We aim to build good partnerships based on mutual trust in collaboration with business partners.
Identifying Critical Suppliers and Risk Products
The JAL Group identifies approximately 500 critical suppliers based on purchasing amount and volume and the criticality and substitution sustainability of products. In fiscal year 2018, in order to identify products with a high level of sustainability risk, all products procured were screened, and the degree of risk was clarified from the viewpoint of promoting procurement with consideration for sustainability, such as the environment, human rights, and labor. In order to provide customers with safe and secure services, we have identified products that are deemed to pose higher risks, such as in-flight meal products for consumption and cabin service products for use on board the aircraft, and are making efforts to confirm the soundness of our supply chain on a priority basis.
Cooperation and monitoring with business partners
The JAL Group checks the status of compliance with the JAL Group Supplier Code of Conduct, which stipulates initiatives that consider sustainability of the environment, human rights and labor. We use the Sedex Information Exchange Limited (Sedex*1), which we joined in 2015, to confirm the status of our activities. We use the CSR information platform provided by Sedex and ask our business partners, both in Japan and overseas, to join Sedex and to answer self-assessment questionnaires. In addition, since fiscal year 2019, we began sending own questionnaires (JAL Questionnaire) to critical suppliers to check compliance status by the responses to the JAL Questionnaire. We have received responses from 231 companies by the end of fiscal year 2020, and are currently confirming their compliance status. We plan to complete the health check of all critical supplier companies by the end of fiscal year 2023. Also, if they do not meet our minimum standards (which is considered to pose a sustainability risk), we will request improvements, if any momentous issue is confirmed, we will conduct supplier audits, along with conducting dialogues with experts and NPOs to continue a more sustainable procurement.
*1 Sedex, the Supplier Ethical Data Exchange, is a non-profit organization established in the U.K. in 2004 that provides a platform for managing and sharing corporate ethical information with the aim of ensuring responsible business practices on supply chains.
Requests for improvement were made to suppliers with some need further improvement.
Request for improvement to Business Partners
We evaluate the results of the JAL survey forms and the Sedex self-assessment questionnaire that we receive from our business partners, and if the evaluation of our suppliers does not meet the standards required by JAL (which is considered to pose a sustainability risk), we will communicate with them from our company and request them to improve their performance so that they will satisfy the standards of JAL Group Supplier Code of Conduct. Through face-to-face meetings, phone calls, visits to email, etc., it is essential for us to make improvements in order to meet the standards by the set deadline, or to submit a corrective action plan for improvement, in order to continue our business in the future. Through these improvement requests and other efforts, the soundness of 37% of critical supplier was confirmed by the end of fiscal year 2020.
The JAL Group will conduct audits in the event that expected improvements are not achieved or in special cases as necessary. In fiscal year 2019, in preparation for the April 2020 upgrade of our company uniforms, we conducted SMETA audits*2 of 7 suppliers of uniforms that we outsource to a third party. Based on the audit results, we requested improvements on items that require immediate improvement, and confirmed that we had made improvements on all requested items in cooperation with business partners.
*2 SMETA (Sedex Members Ethical Trade Audit) is an auditing scheme designed to improve corporate ethics in global supply chains and is widely accepted as an international standard. It enables strengths and weaknesses (non-conformities) of companies to be identified against international standards and clarifies necessary actions for further improvement. For further details, please visit the official Sedex website.
Conversation with Business Partners
We hold the JAL Group Business Partner Liaison Meeting on a regular basis to help business partners understand the JAL Group's basic approach to procurement and to share information and opinions with them. In fiscal year 2019, we invited external lecturers to conduct educational activities on ESG/SDGs, and 41 companies participated. In fiscal year 2020, we held an online webinar on ESG/SDGs in impact of COVID-19, introducing the JAL Group's efforts, mainly its efforts to reduce the volume of carbon emissions, and working to improve Business Partner’s understanding of ESG/SDGs. We aim to contribute to solving social issues such as the SDGs by collaborating with our business partners through our business partner liaison meetings and individual exchanges. In accordance with Olympic and Paralympic Games Tokyo 2020's guidelines, we are actively promoting initiatives based on the Sustainable Procurement Code*3.
*3 Guidelines established by the Tokyo Organizing Committee of the Olympic and Paralympic Games to ensure that services truly necessary for the Olympic Games are procured with consideration for economic rationality, transparency and other ethical principles and to ensure procurement with consideration for sustainability.
Selection of suppliers with ESG management in mind
To achieve the SDGs through ESG management, the JAL Group aims to build a sound supply chain that takes sustainability into consideration. We ask all our business partners to understand and comply with "JAL Group Supplier Code of Conduct," which is one of the preconditions of our business. For suppliers classified as critical supplier, we evaluate quality, price, and delivery times, as well as ESG management through self-assessment questionnaires and other means, both at the time of supplier selection and at any time thereafter. In addition, there is a growing demand for responsible procurement products that consider their impact on the environment and society. In September 2018, we began using FSC® certified*4 wood and paper products, and in June 2019, we began using MSC*5 and ASC*6 certified materials.
FSC®(Forest Stewardship Council®) certification：An international forest certification program established in 1994, amid global issues of deforestation and forest degradation and rising environmental awareness among citizens. Based on opinions of interest parties gathered worldwide, forests are inspected and certified against strict standards of FSC’s 10 Principles of Forest Stewardship and 70 criteria that balances environmental, social, and economic factors. These inspections are undertaken by independent organizations. FSC offers two main types of certification: Forest Management (FM) certification which certifies careful and long-term forest management and Chain of Custody (CoC) certification which certifies the processing, manufacturing and distribution process of forestry products. JAL requests business partners in the supply chain to seek FSC CoC certification.
*5 MSC（Marine Stewardship Council）：Marine Stewardship Council Management of certification system for natural marine products sustainable fishing in consideration of the environment and society and caught by such fishery.
*6 ASC（Aquaculture Stewardship Council）：Aquaculture Stewardship Council Management of certification system for marine products produced at aquaculture farms in consideration of the environment and society.
Target and Achievement（KPIs in Supply Chain Management）
|Key Measures (KPI)||Implementation Period||Target||Achievement
|Monitoring completion rate for critical supplier||FY19-FY23||100%||63%|
|Health confirmation rate for critical supplier||FY19-FY23||100%||37%|
|Audit implementation rate for suppliers requiring audits||FY19-FY23||100%||No Target|
|Implementation rate of sustainability training for procurement staff||Yearly||100%||100%|
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