Supply Chain Management

Fundamental Concept

Kumagai Gumi has formulated purchasing management rules with the objective of ensuring transparency in the selection of business partners, and consideration of the environment. In April 2021, we formulated our Procurement Policy and Procurement Policy Guidelines to promote sound business activities.
We also promote understanding and cooperation by sharing our Procurement Policy Guidelines with partner companies and suppliers, following their review of our Procurement Policy.

Procurement Policy and Procurement Policy Guidelines

The Kumagai Gumi Group is committed to enhancing compliance across its supply chain and to preventing and remedying adverse impacts on human rights and the environment. Together with partner companies and suppliers, we strive to increase value throughout the entire value chain.

Procurement Policy (overview)

  1. Compliance with laws and social norms
  2. Ethical and fair business practices
  3. Respect for human rights
  4. Safety and health promotion
  5. Maintaining and improving quality
  6. Environmental protection
  7. Thorough information security measures
  8. Social contribution
  9. Continuation of business activities during disasters

Declaration of Partnership Building

Kumagai Gumi endorsed the principles of the Declaration of Partnership Building and made our commitment public.
The declaration aims to promote fair business practices and foster mutual prosperity between large corporations and small- and medium-sized enterprises (SMEs), particularly in light of the economic challenges posed by the COVID-19 pandemic. To prevent SMEs and micro-enterprises from bearing the brunt of deteriorating business conditions, participating companies commit to: (1) promoting mutual growth across the entire supply chain, including new forms of collaboration that transcend corporate scale and affiliation; and (2) upholding desirable business practices between parent companies and subcontractors.

Partnerships with Partner Companies

Kumagai Gumi established the Yuuei Kyoryoku Kai to ensure a construction framework capable of adapting to future changes in the market and to deliver quality that meets customer expectations. April 2025 marked Yuuei Kyoryoku Kai’s tenth anniversary.
Comprised of partner companies, Yuuei Kyoryoku Kai is dedicated to further enhancing safety, quality, environmental performance, and labor practices. It plays a vital role in strengthening safety and quality across Kumagai Gumi’s supply chain.

Risk and Opportunities

Specific issues Risk of inaction Opportunities
Strengthening of supply chain management
  • Illegal conduct by procurement partners
  • Structural exhaustion of the entire industry due to the emergence of low-price competition
  • Increase in procurement costs
  • Formation of appropriate markets
  • Optimization of procurement costs
  • Revitalization of supply chains