Supply Chain Management

To ensure that corporations fulfill their social responsibilities, it is important for them to build relationships of trust and to cooperate not only within their own companies but also with suppliers, who are important business partners. At SHIONOGI, we are collaborating with our suppliers based on the Group’s Procurement Policy and SHIONOGI Group Business Partner Code of Conduct,  which sets out a basic approach designed to ensure that procurement activity is founded on honesty, fairness, equity, and transparency, and strengthening supply chain management while working to realize a sustainable society.

Initiatives Covering the Supply Chain

We are happy to announce that SHIONOGI joined in the Pharmaceutical Supply Chain Initiative (PSCI) in August, 2017. The PSCI is a non profit organization which promotes of the CSR procurement※ in the pharmaceutical and healthcare industry. The number of PSCI member companies is on the increase and more than 50 companies join in the PSCI now.

 

The basic principles adopted under the PSCI cover a comprehensive range of fields, including not only environment and health and safety but also human rights and labor, ethics, and their associated management systems. In 2020, the principles were revised, and further items added. SHIONOGI will continue to support the revised principles and strongly urge all suppliers to endorse them throughout the value chain.
※To obtain an action to corporate social responsibility (CSR) from the company of the business partner

PSCI Principles (Extracted items only)

[Ethics]

  1. 1
    ANTI-BRIBERY AND CORRUPTION
  2. 2
    FAIR COMPETITION
  3. 3
    ANIMAL WELFARE
  4. 4
    DATA PRIVACY AND SECURITY
  5. 5
    PATIENT SAFETY AND ACCESS TO INFORMATION
  6. 6
    CONFLICTS OF INTEREST

[Human Rights and Labor]

  1. 1
    FREELY CHOSEN EMPLOYMENT
  2. 2
    CHILD LABOR AND YOUNG WORKERS
  3. 3
    NON-DISCRIMINATION
  4. 4
    FAIR TREATMENT
  5. 5
    WAGES, BENEFITS AND WORKING HOURS
  6. 6
    FREEDOM OF ASSOCIATION

[Health and Safety]

  1. 1
    WORKER PROTECTION
  2. 2
    PROCESS SAFETY
  3. 3
    EMERGENCY PREPAREDNESS AND RESPONSE
  4. 4
    HAZARD INFORMATION

[Environment]

  1. 1
    ENVIRONMENTAL AUTHORIZATIONS AND REPORTING
  2. 2
    WASTE AND EMISSIONS
  3. 3
    SPILLS AND RELEASES
  4. 4
    RESOURCE USE
  5. 5
    SUSTAINABLE SOURCING AND TRACEABILITY

[Management Systems]

  1. 1
    COMMITMENT AND ACCOUNTABILITY
  2. 2
    LEGAL AND CUSTOMER REQUIREMENTS
  3. 3
    RISK MANAGEMENT
  4. 4
    DOCUMENTATION
  5. 5
    TRAINING AND COMPETENCY
  6. 6
    CONTINUAL IMPROVEMENT
  7. 7
    IDENTIFICATION OF CONCERNS
  8. 8
    COMMUNICATION
PSCI logo
At SHIONOGI’s manufacturing and research sites, we conduct environmental impact assessment regarding all aspects of their operations from the purchase of raw materials to disposal. Our awareness raising targets not only high-risk in-house operations but also outsourced services, waste disposal operators and other related parties. An emergency communication system is also established between SHIONOGI and its suppliers.

Our Suppliers’ EHS/CSR Management Guidance sets out EHS risk categories and risk management procedures for suppliers and stipulates which conditions they must meet according to their assigned management level. For important investigational new drugs and pharmaceutical raw material suppliers, we carry out surveys using the PSCI’s self-assessment questionnaire (SAQ)—to confirm the supplier’s status in areas including ethics, human rights and labor, environment, health and safety, and their management systems—in conjunction with on-site

audits. When conducting on-site audits, we also perform risk confirmation for each supplier, such as safety assessments of their manufacturing processes and assessments of locally applied laws and regulations.

So far, we have had 35 suppliers consent to the basic principles adopted for the PSCI and undergo SAQ-based written audits. Subsequently, visits were made to 20 of the suppliers, and on-site audits completed. We will continue working to strengthen relationships while building relationships of trust with suppliers and aiming to realize a sustainable society together with them.

Supplier Management Level and Auditing Items
No. Category (by handled products) Management level Auditing items implemented
Written confirmation Questionnaire survey On-site audit
1 Suppliers of API, intermediates or preparations (GMP[*2]–conforming process) for drugs developed since the adoption of PV[*1]–based manufacturing High ◯ ◯ ◯
2

Irreplaceable suppliers

Suppliers of API, intermediates or preparations (GMP-conforming process) for new products

 Intermediate ◯ ◯  
3

Suppliers other than the above

(Manufacturers of general-use raw materials, subcontractors in charge of packaging, etc.)

 Low ◯    
  1. ※1
    PV: Process validation; confirmation and documentation that the process is valid for permanently manufacturing products of the target quality when operated under a permissible range of conditions set based on the results of industrialization research, the past manufacturing records of similar products, or other such data and in consideration of variables likely to affect the preset product quality (physical properties of raw and other materials, operating conditions, etc.)
  2. ※2
    GMP: Good Manufacturing Practice: international standards for the manufacturing and quality control of pharmaceutical products; the GMP-conforming manufacturing of pharmaceutical products is required to follow GMP procedures and guidelines concerning operations such as the delivery of raw materials, inspection, manufacturing, packaging, shipment management, storage, and collection and disposal.
SHIONOGI submits the declaration of the White Logistics Movement
Declaration of Partnership Building

We have announced the Declaration of Partnership Building in support of the purpose of the Council on Promoting Partnership Building for Cultivating the Future, which is promoted by the Cabinet Office and the Small and Medium Enterprise Agency. We aim to build new partnerships by promoting cooperation, coexistence, and co-prosperity with our suppliers in the supply chain and businesses seeking to create value. Please see below for details.

SHIONOGI's Declaration of Partnership Building

 

Reference: The Portal site of Declaration of Partnership Building  (Japanese site)