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Supply Chain Management
Supply Chain Management in the Manufacturing Business

Supply Chain Management

Supply Chain Management in the Manufacturing Business

Basic Policy
Promoting Sustainable Wood Procurement

Basic Policy

The Sumitomo Forestry Group promotes responsible procurement activities while working with procurement suppliers through the manufacturing business in efforts such as sustainability procurement surveys and on-site field surveys for not only domestic wood in Japan but also hardwood from North America, and wood from planted forests in New Zealand and Indonesia.

We prioritize and promote the use of certified timber and wood from planted forests for new raw materials during raw material procurement and encourage suppliers to understand and practice the Sumitomo Forestry Group Procurement Policy for raw materials currently in use. These efforts promote procurement of legal and sustainable raw materials.

Promoting Sustainable Wood Procurement

Kutai Timber Indonesia (KTI), a production site in Indonesia, has been working to build a system for sustainable planted forest management in cooperation with local plantation cooperative associations to heighten the ratio of wood from planted forests used as raw materials.

KTI also began reforestation with fast-growing trees such as Falcata (Albizia falcataria) in 1999. With the system of "social forestry," KTI has aimed to support the environment, community and economy by distributing seedlings to local residents for free to plant on the lands they own and promises to purchase wood when the trees are mature at its market value. In addition, the KTI Reforestation Cooperative supported by KTI (KBM KTI) has acquired the FSC-FM certification* for forests owned by KTI (KAM-KTI).

In the future, KTI will strive to expand the manufacture and sales of products with high environmental value by expanding the area of certified forests and procuring sustainable wood in order to fulfill the requirements of many of our business partners.

* KAM KTI: FSC-C023796, KBM KTI: FSC-C133562

Use of Sustainable Wood

Sinar Rimba Pasifik (SRP) uses sustainable wood that takes into consideration the environment and at the same time, manufactures high-quality wood interior materials (floors, stairs, counters, etc.) of a consistent design and supplies products primarily for Sumitomo Forestry homes. SRP procures only sustainable wood as the main raw material for these products, and is also promoting the use of wood from planted forests.

Approximately 70% of wood used was imported from North America, all of which is certified wood from member companies of the American Hardwood Export Council (AHEC) or Quebec Wood Export Bureau (QWEB), which promote sustainable forest management.

The remaining wood procured is wood from planted forests in Indonesia (Perum Perhutani), all of which are materials that have received SVLK (Sistem Verificasi Legalitas Kayu) certification.

We will continue to pursue sustainable wood and manufacture and sell high-value-added products that use verified as legal and sustainable wood.