Supply Chain Management

Supply Chain Management in the JT Group Business

Activities in the Tobacco Business

JT Group Procurement Policy
Supply Chain Management in JT Group’s Business

Domestic Leaf-Tobacco Procurement

Pharmaceutical companies manufacturing drugs that have

While consumers and society pay greater attention to thea direct impact on human life and health must ensure highquality of raw materials, the JT Group places a premium onlevels of quality and safety in every phase of their opera-

producing quality leaf tobacco.

tions, from R&D of drugs to post-marketing surveillance.

The JT Group’s domestic leaf-tobacco production depends

Torii Pharmaceuticals Co., Ltd., a JT Group company manufac-

on procuring raw materials from contract leaf-tobacco

turing and distributing pharmaceuticals, gives the highest prior-farmers nationwide.

ity to the safety of patients and sees to it that the quality and

The very basis of agriculture lies in soil preparation, insafety of drugs are maintained throughout the entire process,which the use of organic fertilizers is effective. JT encour-from raw material procurement to manufacturing, shipment,

ages leaf-tobacco farmers to reduce the use of chemical fer-and delivery to patients. Accordingly, raw material suppliers andtilizers, replacing them with quality compost and mixed

outsourcing companies are selected through rigorous screeningorganic fertilizers.

to ensure the quality of finished products. In addition, existing

At the same time, explicit standards and rules are in place

suppliers are regularly audited to maintain the quality of drugs

This policy stipulates that compliance be observed and due

to regulate the use and handling of agrochemicals for leaf-until they are delivered to patients. In order to abide by relevantlems through management of corporate supply chains.

consideration be paid to human rights and the environment

tobacco cultivation, while meetings and seminars are heldlaws and regulations, moreover, the general marketing compli-

While the JT Group has been putting forward CSR-oriented

when procuring materials.

for all contract farmers to minimize agrochemical use in anance officer, the quality assurance supervisor and the safety

procurement such as green procurement, the JT Group

Accordingly, the JT Group will continue expanding coop-appropriate way. There is also a system to have them

management supervisor known as “manufacturing/marketing

Procurement Policy was established to further meet social

eration with suppliers to pursue CSR-oriented procurement

report on the amount of agrochemicals used and to analyze

triumvirate” are in place, working to ensure the quality of drugs

expectations and fulfill corporate social responsibilities.

through its entire supply chain.

samples of all leaf tobacco upon purchasing, ensuring theand the safety of those already on the market.

traceability of individual farmersforJT Group Responsible Procurement Policy
The mission of the JT Group is to create, develop and nurture its unique brands to win consumer trust, while understanding and respecting the environment, and the diversity of societies and individuals. To achieve the mission of the JT Group,
the JT Group operates procurement in the manner as stated in the JT Group Responsible Procurement Policy.

problem-identification

pur-Activities in the Food Businessposes.

The Food Business places a premium on the highest level

JT and its contract leaf-tobacco
farmers will continue making aof safety control to provide consumers with safe and reli-concerted effort to produce reli-able products.

able leaf tobacco.

Leaf-tobacco farm

1. Implementation of Compliance

Producing safe foods starts from procuring safe, highquality raw materials. The JT Group, therefore, makes it

Overseas Leaf-Tobacco Procurement

compulsory for suppliers to turn in quality assurance,● Providing appropriate measures to protect all information provided to us by our suppliers for procurement activities.

Japan Tobacco International (JTI, headquartered in Ge-

which are carefully examined. Regarding key raw materi-

Guidelines for Conduct.

2. Environment
JT Group operates procurement in a manner to pay due consideration to the environment in accordance with the basic
principle of JT Group Environment Charter.

3. Selection of Suppliersals, moreover, pesticide residues and antibiotics are moni-overseas for the JT Group. Sustainable development of

tored and inspected, while raw material factories are regu-

tobacco-producing areas, meanwhile, is key to maintaining

larly audited. As for raw materials produced overseas

the supply of quality leaf tobacco. JTI is thus committed to(Thailand, Vietnam, China, etc.), the conditions of agricul-

solving social problems, while playing a part in developing

tural farms (the soil, water quality, cultivation conditions,tobacco-producing areas and improving farmers’ living

and pesticide management), breeding farms, and fishstandards.

farms are inspected to ensure the safety of finished prod-

As major tobacco-producing areas in Africa and other par-ucts right from the production of raw materials.

ts of the world face serious problems such as deforestation,

Production processes are also monitored according to rig-poverty, low agricultural productivity, and child labor, JTI is

orous standards. While all frozen food factories of the JT

working on a variety of programs, including those for a for-Group and its outsourcing companies have obtained ISO

estation, forest conservation, construction of irrigation sys-22000 certification for foodtems, and agricultural technical assistance. It is also

safety, security and chemical

engaged in programs to provide children with opportuni-management, too, are audited,ties for education and to educate local communities includ-with regular as well as no-ing tobacco-leaf farmers, thereby eliminating child labor

notice audits conducted at fac-and dangerous work.

tories at home and abroad.

Related pages

Inspection by Food Safety Advisors

Towards Harmonious Relationships
with Local Communities

Our supplier selection is based upon our review of a supplier’s quality, price and service. In particular, JT Group willconsider the supplier’s historical success with respect to the delivery of goods and services to be supplied to JT Group,
as well as the supplier’s capability to ensure ongoing delivery of these requested goods and services. In addition tothese criteria, JT Group will consider the following:● The supplier’s compliance with relevant laws and regulations for each country and region.
● The supplier’s policies that respect human rights and social norms.
● Whether the supplier has appropriate measures to pay due consideration to the environment.
● Whether the supplier has appropriate measures to protect confidential information, trade secrets and any otherinformation provided by business partners.
● Whether the supplier has appropriate measures that ensure business continuity, free from any operational andfinancial instability.

neva, Switzerland) is in charge of procuring leaf tobacco

Approaches to Protecting
the Global Environment● Acting in a manner to comply with the legislation and regulations relating to procurement as well as social norms.
● Operating procurement activities in appropriate and sincere manner that follows JT Group Principles of Conduct andStrengthening ofthe Business Foundation

There has been a growing need to deal with social prob-

Supply Chain Management

JT Group Responsible Procurement Policy

Activities in the Pharmaceutical BusinessAppropriate Manufacturing Processand Consumer Services

Supply ChainManagement

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Feature1: Social Contributions in Tobacco Leaf Producing Regions

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CSR Report 2012

CSR Report 201224