Supply Chain Management

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

●Anritsu Basic Rules of Procurement and Requests to Suppliers and 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 suppliers and 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 added 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 and transaction with antisocial forces

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 suppliers and partners gain an understanding of the Basic Rules of Procurement and the Requests to Suppliers and Partners described above through such activities as budget briefing sessions and letters of request from executive officers. In fiscal 2009, the company added CSR-related items to its quality and environmental audits of suppliers and partners. In fiscal 2010, it established the Anritsu CSR Procurement Guidelines, which provide practical guidance for addressing our Basic Rules of Procurement policy.
Both actions were taken to improve our foundation and framework for fulfilling its CSR. Going forward, we plan to ask suppliers and partners to review their own operations based on the Anritsu CSR Procurement Guidelines.
The results will be incorporated into our efforts to further improve our supply chain.

Approach to Business Continuity Plans (BCPs)

The SCM (Supply Chain Management) Division formulated a business continuity plan (BCP) that is focused on the supply chain and encompasses the organizational structure and identification of key operations as well as projected risks and damage. Under this plan, Anritsu Corporation in Atsugi, Kanagawa Prefecture, will work together with the Koriyama Office and Tohoku Anritsu Co., Ltd. in Koriyama, Fukushima Prefecture, in the event of a disaster or serious accident. The Great East Japan Earthquake in March 2011 damaged a part of the Koriyama Office building and disrupted public lifelines. We will draw upon the experience to fortify our BCP, construct an emergency response framework, and conduct drills to ensure faster, more effective response.

Partners in creating a sustainable society

Yusuke Numatani
Strategic Solution Sales Div.
MACNICA, Inc.

We value our business partnership with Anritsu, through which we have delivered electronic components for more than 30 years. We understand that the publication of the Anritsu CSR Procurement Guidelines in fiscal 2010 to complement the Basic Rules of Procurement and the Requests was in response to rising public expectations. MACNICA, Inc. is also working more proactively as a part of the supply chain to fulfill its social responsibility through business activities beyond compliance. The partner QU program has proven to be a very effective system for strengthening this partnership. Under this program, which has also been adopted by MACNICA, Inc., we have been able to offer our recommendations as a supplier for improving business. Our established relationship with Anritsu will significantly help us fulfill our social responsibility not simply as a member of the supply chain, but as a partner in the creation of a sustainable society. We will perform this by providing better products and services that contribute to safety, security and comfort.