What's wrong with it? If you want Sony money you'll have to dance to Sony music.
Sony procures parts and materials from a large number of companies worldwide for its global manufacturing activities. Sony has the same expectations of its suppliers regardless of their location:
1. Work as an equal partner
Sony respects each supplier as an independent company working on an equal basis with Sony. Sony makes itself fully accessible to suppliers that can function as true partners by working together in building relationships based on mutual trust.
2. Comply with laws, regulations and social standards
Sony's goals involve more than the supply of products that give customers satisfaction. Sony also works to meet the expectations of customers by being a good corporate citizen that adheres to the laws, regulations and social standards of countries around the world. Because of this, Sony is uncompromising in its demand that all suppliers strictly comply with laws, regulations and social standards (including the protection of employee rights and the prohibition of child and forced labor.).
3. Maintain sound financial and operating bases
Sony believes that procurement activities should be conducted on a continuous basis. A sound financial base is essential for suppliers to provide an uninterrupted supply of parts and materials. This is especially important from a supply chain management point of view. Sony therefore asks suppliers to provide information on management policies and operations (including their financial statements.)
4. Conduct environmental program
Environmental conservation is one of the central elements of Sony's management policies. Sony sees the effective management of materials and processes as a crucial part of a supplier's operations. This management system is called "upstream control" and helps to reduce the impact on the environment of both suppliers and Sony.
When signing a deal with a new supplier, and regularly thereafter, Sony inspects suppliers to verify that they meet Sony environmental standards. Suppliers are required to qualify as Green Partners through an audit based on the "Sony Green Partner Environmental Quality Approval Program."
5. Develop new technology
Sony must constantly work on developing new technology to supply products that give customers a sense of excitement, joy and satisfaction. Suppliers that wish to become Sony partners must have the technological skills needed to create the new technology and parts that Sony requires. Partners are also expected to be able to merge their own skills with those of Sony to create unique technological capabilities that generate new value.
6. Utilize e-commerce
Relationships with suppliers involve the rapid exchange and sharing of large volumes of information to enable transactions to be performed efficiently and effectively. Sony employs e-commerce, through the Internet and other networks, for this purpose. Sony therefore requires all suppliers to be e-commerce ready.
7. Maintain required quality standards
The quality of parts and materials provided by suppliers has a significant effect on Sony products, with high-quality parts and materials having a major role to play in the creation of high-quality Sony products. Sony believes that suppliers can produce parts and materials that meet required standards only when suitable quality assurance programs are in place. Prior to signing a deal with a new supplier, and regularly thereafter, Sony therefore conducts audits of suppliers' quality assurance programs.
8. Offer reasonable prices
The prices of parts and materials provided by suppliers have a major impact on the cost competitiveness of Sony products. Sony therefore expects suppliers to offer items at highly competitive prices and make concerted efforts to steadily reduce prices.
9. Cooperate with supply chain management and maintain a reliable supply
Sony is linked to its suppliers through the respective supply chain of each Sony product. Each supply chain must be capable of producing items in a timely and efficient manner in order to rapidly respond to shifts in customer demands. The inability to do so could prevent Sony and its suppliers from succeeding in the marketplace. Sony therefore expects suppliers to be in close contact at all times to carefully supervise delivery dates and to supply parts and materials in a highly flexible fashion.
10. Retain a competitive edge going forward
Sony and its suppliers, through the products and operating activities of the Sony Group, must be able to continuously generate value for the future that customers find appealing. Sony expects its suppliers to formulate a corporate philosophy and implement measures designed to create this value, based on the supplier's own management policy and the guidance outlined in the 9 items above.