As part of its business continuity plan (BCP),Tokyo Electron(TEL) collaborates with suppliers for disaster preparation. We maintain a database of suppliers’ production sites so that if a crisis arises, we can promptly identify impacted suppliers and quickly collaborate in recovery efforts. Following an earthquake or other disaster, we also survey suppliers registered in the affected location to assess impact to their operations. During fiscal 2017, about 17,000 supplier sites were registered, and post-disaster surveys were conducted six times. Following the Kumamoto Earthquake, the survey of impacted suppliers was carried out the same day. Consequently, our collaboration for recovery was quicker and smoother than at the time of the Great East Japan Earthquake. Also during fiscal 2017, we requested suppliers to evaluate their fire-prevention systems, and we shared this information internally along with activities to recover from fire damage.
According to a BCP survey of key suppliers (accounting for more than 80% of our procurement spend) improvements in overall rating level were observed at more than 32% of suppliers and improvements in the overall raw score were seen at more than 56%. Responses, results, and overall assessments were given as feedback to suppliers to promote further improvement.