Our supply chain
Responsible procurement becomes ever more important as we outsource more of our business activities. Our local stakeholders increasingly wish to learn more about the environmental and labour practices of our suppliers, their record and implementation of health and safety practices, and our responses to the complex problem of conflict minerals in our upstream supply chain.
Fuji Xerox Australia's approach to sustainable supply chain management is informed by the ten principles of the UN Global Compact (UNGC),to which Fuji Xerox Co Ltd became a signatory in 2008 and recognised as a UNGC LEAD company since 2010. The principles are incorporated into our supporting policies and new supplier evaluation documents which are made available via a Supplier Portal on our corporate website, and allows potential suppliers to pre-qualify by completing the readily available assessment forms.
We look for suppliers who share our commitment to internationally recognised standards and appropriate codes of practice, striving for best practice and continuous improvement in:
• Ethical business practices
• Management practices that respect the rights of all employees and the community
• Financial Performance
• Environmental management
• Occupational health and safety
Fuji Xerox Co Ltd introduced a focus on ethical procurement in 2007, viewing suppliers as business partners with the aim of building mutually beneficial relationships. China accounts for the majority of Fuji Xerox Co Ltd's manufacturing output, so ethical procurement has been led by procurement departments in China. Since 2012, procurement personnel have been trained to conduct supply chain checks during supplier visits. This complements a self-checklist provided to suppliers that is verified by Fuji Xerox Co Ltd in-house auditors. Advice is then provided to suppliers to make the required improvements.
Fuji Xerox Co Ltd is taking the learnings from working with suppliers in China to other ASEAN countries where they are expanding their supplier base, starting with Vietnam. See Fuji Xerox Co Ltd’s 2016 Sustainability Report for more detail on engagement with suppliers.
Fuji Xerox Co Ltd recognises conflict minerals as a major human rights issue. Its procurement policy includes a clear call to deal in good faith with the issue. As a member of the Responsible Minerals Trade Working Group of Japan Electronics and Information Technology Industries Association, there is collaboration to identify rational and effective measures to ensure we are not party to human rights violations. The investigation of conflict minerals with suppliers is based on the approach of the Electronic Industry Citizenship Coalition (EICC) – Global e-Sustainability Initiative.
For more on Fuji Xerox Co Ltd’s engagement with the conflict minerals issue see Case Study 2 in Fuji Xerox Co Ltd's 2016 Sustainability Report on engagement with suppliers.
Out of our overall spend, 57 percent is classified in our trade categories, which consists of equipment, supplies and consumables from Fuji Xerox Co Ltd and related entities within the region, who work to assure the integrity of our product supply chain.
The largest components of the remaining spend of 43 percent, classified as non-trade, can be grouped into the following categories:
- Inbound freight
- Local ground transportation and associated warehouse logistics operations
- Third-party-sourced direct spend categories such as equipment and paper for our Supplies division
- Third-party hardware and software solutions for our customers
- In-direct spend including IT, travel and contingent labour resources.