Sustainable ProcurementStandard Flow of Contractual Procedures

1Request a new business transaction with JR East　→　Complete and send the application form

When applicants request a new business transaction with JR East, the applicants will complete and send the application form to JR East. The application form is attached in the page titled, "Inquiry (Application Form for a New Business Transaction)." Required items of the form include Company Name, Person in Charge, Business Content, Sales Volume, and Major Production Item (product line), etc. Please refer to the application form for details.

2Confirmation of the contents of the application

Under this process, JR East will check as to whether there is a blank and/or ambiguous item in the application form. If there is a blank and/or ambiguous item, JR East will ask the applicant to submit any additional required documents.

3First screening

JR East will examine the possibility and benefit of introducing the goods, based on the association between the needs of JR East and the information such as financial condition, past track records, and the goods of the applicant derived from the application form, etc. Except in a situation where there is no possibility in the foreseeable future or no benefit of introducing the goods, the application will be transferred to the second screening.

4Second screening

JR East will conduct secondary screening for a product in the event that it recognizes the possibility and/or benefit of appointing said product as a result of the preliminary screening.

In such a situation, JR East will request the applicant to make a visit to its offices to provide a more detailed explanation of the product in question. If deemed necessary, JR East may request that the applicant submit samples and/or perform quality checks/testing depending upon the product. JR East may also perform quality checks or testing on its own terms.

In the event that, after examination of a product, JR East recognizes said product’s necessity, the applicant will be provided with the necessary documents to be submitted to confirm soundness of management, technological capabilities, and other aspects.

Based on the submitted documents, samples, and any other related subject matter, JR East will conduct extensive examination whether in part or in entirety related to the following: Necessity of business transaction, product quality, product performance, product reliability and cost performance, compatibility with existing facilities, devices, and/or systems of JR East, accident response and post-sales service system, consistency in delivery schedules, continuity of service, quality control system, supply capabilities, facility capabilities, performance record, technical capabilities, safety awareness, soundness in management, corporate credibility, information control system, compliance system, exclusion of relations with anti-social forces and/or organizations, respect for human rights (prohibiting discrimination, forced labor, child labor, etc.), fair corporate activities (prohibiting unauthorized use of intellectual property, etc.), establishment of environmental management frameworks such as for corporate social responsibility and protection of the global environment.

Applicants may be requested to visit JR East offices to supply further information.

5Signing of a master agreement and registration as a supplier

When a continuous business relationship is expected by JR East, JR East will request the signing of a master agreement of JR East's designation. After that, the applicant will be registered as a supplier.

7Request for an estimation, examination of technologies, and negotiation of conditions such as price

In principle, JR East requests competitive estimates. When a need for procurement arises, JR East requests estimates from the relevant registered suppliers which JR East determines after comprehensively taking into consideration, among others, the factors such as quality, performance, reliability, and price of the goods, compatibility with the existing equipment, devices, and/or systems of JR East, accident response and after-sales service system, reliability of delivery, continuity, quality control system, supply capabilities, track record, technical capabilities, comprehension of safety, and information control system, etc. In the case where JR East requires technical proposals from registered suppliers from whom JR East requests estimates, JR East will notify the registered suppliers when the estimates are requested. Upon receiving this request, the relevant registered supplier will submit an estimate (and a technical proposal) for the goods in need of that procurement. After examining and comparing the estimates received and the technologies required, JR East will select a supplier from among the registered suppliers, and negotiate and determine the conditions for procurement, such as the price, with the selected supplier. JR East will place JR East's order with the selected supplier, following these procedures.

8Order placement, delivery of goods, and acceptance inspection

Upon receiving an order from JR East, the selected supplier will deliver the goods to the designated delivery point by the designated delivery date. JR East will conduct an acceptance inspection after the delivery.

9Payment

After passing the acceptance inspection, JR East will make payment based on the terms and conditions.

(As of July 2024)