Our Supply Chain

Global Collaboration

As Toyoda Gosei’s business expands globally, the head office is collaborating with purchasing managers in each region to achieve optimum procurement, with consideration of quality, cost, risk avoidance, and all other parameters. In addition to collaboration on ordinary items, regional core leaders are appointed and regular Global Procurement Liaison Meetings are held as structures for global collaboration. Information on sustainability activities as well as QCD (quality, cost, delivery) is shared with regional managers, and there are ongoing dialogs to resolve issues. Specifically, Toyoda Gosei’s global supply chain is being strengthened through mutual support, such as sharing information on buyer education materials, carbon neutrality activities, and sustainability efforts.

Business With New Suppliers

We have an entry form on our website for open dialogue regarding new proposals and business dealings.

In addition to QCD assessments at the start of new business dealings, we also check the status of the other party’s management activities based on their level of support for our sustainability guidelines and other factors, to manage risks starting from our first transactions.

At the same time, together with the signing of contracts and memorandums of understanding, we explain the various guidelines that Toyoda Gosei has developed and seek their understanding.

New Supplier Assessment

We have established and are implementing internal rules for selecting new suppliers when we start doing business with them.

In addition to examining a potential supplier’s financial conditions and other factors, we also check the status of their quality management certification, such as ISO9001 and IATF16949, and investigate sustainability issues to determine whether or not to initiate business with them.

Responsible Procurement of Materials

With the globalization of business, supply chains are becoming increasingly global and diversified. However, places where workers’ rights are not taken into consideration still exist in the world, including forced labor and labor in poor conditions.

As one example of this, Toyoda Gosei recognizes the problem of conflict minerals mined under poor labor conditions, and this is an important issue in our supply chain.

Toyoda Gosei conducts a conflict minerals survey once a year with the cooperation of all relevant suppliers. Survey forms are submitted by suppliers targeted for surveys each year, and no serious matters related to conflict materials have been seen in the responses of the suppliers surveyed.

As the market changes and the targeted minerals increase, we will regularly review the risk targets and consider how best to respond as a company.

In the Supplier Sustainability Guidelines (version 2), suppliers are required to conduct responsible resource and raw material procurement.

We will continue to work with our suppliers to avoid the use of minerals of concern throughout our supply chain.

Environmental Risk Assessments

● Environmentally hazardous substances

To ensure compliance with environmental regulations, Toyoda Gosei works with suppliers to investigate the chemical substances contained in the products they deliver to us.

● New suppliers

As part of our environmental risk assessment of new suppliers, we check whether they have obtained ISO14001 or third-party certification before starting to do business with them. In cases when certification has not been obtained, we check for compliance with Toyoda Gosei’s own guidelines. If there are items that are not in compliance, we request corrective action and confirm the results.

Anti-bribery Initiatives

The Toyoda Gosei Group has established the Global Anti-Bribery Guidelines based on the Toyoda Gosei Group Charter of Corporate Behavior, and the entire Toyoda Gosei Group endeavors to prevent bribery, accounting irregularities and other corrupt practices. We also demand that all suppliers doing business with Toyoda Gosei not engage in bribery in their relations with government or administrative officials, and not give or receive gifts of entertainment or money to or from third parties for the purpose of obtaining or maintaining unfair advantages for the Toyoda Gosei Group.

Implementing Carbon Neutral Initiatives in the Supply Chain

To achieve Toyoda Gosei’s goal of carbon neutrality throughout its entire supply chain, joint initiatives were started with suppliers in 2021.

Briefing sessions and lectures were first held to promote understanding of carbon neutrality among suppliers, followed by surveys of CO₂ emissions from suppliers’ own production activities and logistics in order to understand their current status. After identifying individual issues, CO₂ emission reduction activities were started in 2022. Particular efforts are study sessions for product and component suppliers at Toyoda Gosei’s Energy Saving Dojo, which displays the company’s energy-saving expertise; support for measurements of actual energy usage; and various training sessions. Purchasing Division members and other departments collaborate closely with suppliers in establishing tailored reduction themes and implementing reduction activities. At the second Carbon Neutrality Initiative Conference, held in September 2023, about 120 participating companies showed examples of reduction and issues they faced during the year. Group discussions were held for each industrial sector, and challenges were shared in preparing a roadmap for FY2030.

Going forward, Toyoda Gosei will continue to carry out carbon neutrality activities in concert with suppliers.

Strengthening Our Relationships With Suppliers

Every April, we hold procurement policy briefings where we explain our management philosophy, the business environment and company policy to about 250 of our major suppliers in Japan. After sharing our initiatives and targets related to safety, compliance, sustainability, quality, production, and cost, we hold regular discussions to confirm results and make improvements through anticipated value roundtables.

December of each year is designated as Supplier Month. This is an opportunity for Toyoda Gosei to listen humbly, and with gratitude and respect, to what suppliers really think, and to seriously consider and act on whether there is anything the company should change to build a better relationship. Certificates of appreciation are presented and other acknowledgments given to express the company’s gratitude for suppliers’ daily efforts to respond to a changing environment and other matters.

In addition, procurement liaison meetings are generally held monthly to introduce examples of fire and disaster prevention initiatives and share information on production volumes, quality, compliance, and cybersecurity. Explanations are also given on societal issues such as carbon neutrality.

In FY2020, we established Management Troubleshooting Consultations for suppliers and other business operators. We receive candid inquiries from them on various management issues, including corporate management, finance, human resources, and legal matters. This is done in small groups, where we try to give advice on effective solutions.

• Procurement policy briefing
• Supplier Month

Supplier Evaluation System

Toyoda Gosei has established a supplier evaluation system and presents awards to suppliers who have performed exceptionally with regard to QCD.

The company also seeks to strengthen foundations in tandem with the supply chain. One example this is the presentation of certificates of appreciation to suppliers during Supplier Month in December for their ongoing efforts to improve production activities.

Support for Suppliers So That We Can Grow Together

Supplier Training

Companies in the sustainability field face a rapidly changing environment, and we believe it is important for the entire supply chain to understand current trends and take appropriate actions. This is why we conduct training for our major suppliers.

Briefings on topics such as overall sustainability, the environment, and human rights, as well as carbon neutrality and enhanced cybersecurity, are held as appropriate to ensure that our major suppliers understand the importance of these initiatives throughout the supply chain.

Monitoring Supplier Information

Suppliers with whom the company has ongoing business are requested to respond to a supplier survey on management information at least once a year. If there are any major changes, the supplier in question is visited or interviewed, including a confirmation of any problems, and efforts are made to mitigate risks as soon as possible and solve problems.

Supplier evaluations including QCD are also conducted to better understand each company's strengths, weaknesses, and challenges before considering the details of business transactions.

Participation in Relevant Associations and Initiatives

We participate in industry associations such as the Japan Auto Parts Industries Association (JAPIA) and the Japan Rubber Manufacturers Association (JRMA). Our company president serves as an officer (director) of JAPIA.

Through our activities in these industry associations, we seek to achieve sustainable growth together with our suppliers, such as through the Declaration of Partnership Building promoted by the Ministry of Economy, Trade and Industry.

We are also participating in the revision of the JAPIA BCP Guidelines by the general affairs committee of JAPIA for not only earthquakes but also wind and water damage and pandemics. In this and other ways we are contributing to the formulation of BCPs by suppliers in the auto parts industry.