Procurement Process

Procurementprocess is basically conducted as follows.
Rinnai provides appropriate arrangement to the companies which want to start a business relationship with Rinnai, and selects vendors through fair evaluation without any discrimination against both Japanese and foreign companies.

Procurement process

Points of the procurement process

Rinnai has been promoting a zero defect program based on its quality policy, "Providing safe and satisfying products to our customers". As a part of the program, the company requests suppliers to independently establish a quality assurance system and ensure the implementation.

Preliminary survey and Rinnai's contact
Rinnai requests suppliers to prepare comparison data against competitors' products (quality, specification, price, etc.) to demonstrate the advantage and company information before a meeting.
First meeting
Rinnai requests suppliers to prepare comparison data against competitors' products (quality, specification, price, etc.) to demonstrate the advantage and company information before a meeting.
Detailed explanation
It is necessary to have detailed and specific meetings for all aspects with concerned departments (Technical, Quality and Purchasing Department) for the items that Rinnai is interested in. Business opportunities at Rinnai or at the supplier are also considered in parallel.
Formal quotation and provision of samples and drawings
Various terms for quality, price, technical capability, service and the ability to adjust changes in the future are confirmed and approved. Please be aware that both Rinnai and suppliers shall not disclose any information that was obtained through meetings to a third party. Regardless of the result of the application, all study results are provided to suppliers as feedback.
Approval
Mass production samples are evaluated and approved through strict inspections to check if they meet Rinnai's quality standards.
Agreement and conclusion of contract
When agreement is reached for all matters, contracts (Master Transaction Agreement, Quality Assurance Agreement, etc.) are concluded to form formal agreement. Then, a formal transaction begins and Rinnai starts placing orders.