Third-party lifecycle management for Japan operations
Last updated: August 19, 2026
Verdana is a third-party lifecycle management platform that helps companies operating in Japan manage subcontractor documentation, payment-term compliance, and supplier due diligence in one system, built around Japan's specific transaction-documentation requirements.
The Subcontract Act requires a main contractor to issue a written order document specifying scope, price, and payment date to every subcontractor, fix payment within a set period of receipt, and preserve transaction records in a format the Japan Fair Trade Commission can review. Verdana generates and retains that documentation per contractor and per order, instead of leaving it to scattered purchase orders and email threads.
The Unfair Competition Prevention Act's foreign-bribery provisions reach payments made to obtain improper business advantage abroad, and METI's guidance specifically flags due diligence on third-party agents as a control point before engaging or retaining them. Verdana applies the same documented due diligence and monitoring to agents and intermediaries as to any other third party.
Japan sits alongside the rest of Verdana's regional coverage in the same platform: document requirements are configured per market, and headquarters gets one consolidated view of every supplier and contractor regardless of where they operate.
Frequently asked questions
What does the Subcontract Act require when we place orders with Japanese subcontractors?
A written order document specifying the scope of work, price, and payment date, payment fixed within a set period after receipt of the goods or services, and transaction records preserved in a format the Japan Fair Trade Commission can review on request.
Is Japan's human rights supply chain guidance mandatory?
No — METI's Guidelines on Respecting Human Rights in Responsible Supply Chains are explicitly voluntary, not a binding legal requirement, though METI actively promotes their adoption and expects due diligence to cover the supply chain broadly, not only direct suppliers.
Does Japanese law require due diligence on agents used abroad?
The Unfair Competition Prevention Act's foreign-bribery provisions reach payments to obtain improper business advantage abroad, and METI's own guidance names due diligence on third-party agents as a specific risk-control point before engaging or continuing to use them.