Supplier Procedures

GMIND Supplier Order and Shipping Management System

MISUMI suppliers are expected to use the GMIND system for purchase transactions. Suppliers will use GMIND for:

• Receiving orders from MISUMI
• Generating delivery reports
• Generating product labels
• Printing purchase orders and packing lists
• Access and reviewing open orders

Standard payment terms are NET30 or NET45 unless otherwise agreed in writing by MISUMI’s Finance department. Evaluations of payment terms are completed during the supplier evaluation process (see the diagram below for a sample process flow). GMIND training is performed by a MISUMI procurement specialist and is a requirement for new supplier on-boarding.

Delivery

指定的供應商發貨日期(SSD)購買orders is the date MISUMI and the supplier mutually agree to have products delivered to a MISUMI distribution center. MISUMI defines on-time delivery (OTD) as zero days late and zero days early. If a supplier is unable to meet a delivery commitment and does not provide sufficient notice to MISUMI along with an acceptable recovery plan, MISUMI reserves the right to utilize premium freight and/or additional labor to meet commitments to our customers at cost to the supplier.

Supplier Selection

The process of selecting suppliers for materials, components and/or services is an essential part of MISUMI’s commitment to exceeding our customers’ expectations. MISUMI ensures our selected suppliers are aligned with our MISUMI NEXT business strategy by requiring a self-assessment or site audit as part of the selection process. This process is also used to identify potential risks that can be accepted, mitigated or eliminated prior to on-boarding. When selecting a supplier, MISUMI will evaluate:

Quality:Capability to repeatedly produce product that meets or exceeds the technical and quality requirements of MISUMI

Service:Ability to meet MISUMI’s production, delivery and service requirements with a demonstrated high level of support and responsiveness

Strategic Alignment:ISO certified, competitively priced, year-over-year cost reduction capabilities and evidence of continuous improvement

Corporate Accountability:Supplier evaluation within the selection process is based on the potential risk of the sourcing decision, which is determined by supplier history and by the particular materials, components, assemblies, finishes or services provided.

Supplier Management

MISUMI maintains high quality and service by evaluating and qualifying suppliers based on their ability to meet both MISUMI’s and applicable regulatory and statutory requirements. We are committed to collaborating with suppliers to ensure outstanding quality and top performing products. A series of controls are put in place with each supplier to monitor the quality management process and enable continued improvement and growth of the supplier relationship and product performance.

Quality Management Systems

MISUMI suppliers are expected to have a quality management system that complies with ISO 9001, ISO 13485 or their equivalent. Quality management systems must be documented and effective while continuously improving key business practices. Efforts towards continual improvement should be evident to MISUMI through improved product quality, cost reduction and on-time delivery of product. Suppliers that do not consistently meet product and/or service requirements may be placed on probation until improvement is shown.