Supplier Relations
We aim to deepen, grow and develop our partnership with suppliers based on our basic procurement policy.
Basic procurement policy
1. Optimum global procurement
In the process of procuring product materials, products and parts, production equipment, dies/molds and other goods needed for our business, we conduct comprehensive assessments of suppliers from a global perspective. This includes quality, cost, volume/delivery, technology, and the supplier’s attitude to continuous improvement. We do our utmost to make purchases in a fair and open manner.
We also welcome proposals from suppliers for new technologies and methods and new products.
2. Mutual growth based on mutual trust
We want to grow together with our business partners through dealings based on a long-term vision. To this end we work to build strong relationships of trust through close communication with suppliers.
3. Thorough environmental protection and legal compliance
We do our utmost to ensure environmental protection and legal compliance in all our development, design, and production activities. In procurement we follow the principles of purchasing items with minimal environmental impact and conducting our activities in ways that reduce environmental impacts.
We also exercise extreme care for full legal compliance and confidentiality in relation to our procurement activities.
Support for suppliers
We support strong supplier structures with “genchi-genbutsu” (go-and-see activities), and work for their growth. In addition to standardized work and defect prevention to avoid serious quality problems, and lowering of cost prices for higher competitiveness, we involve suppliers in mold and product design. Through sectional committee activities we share information necessary for quality improvements with suppliers. We also conduct checks and risk assessment for compliance with Japan’s Industrial Safety and Health Act to help support the creation of safe workplaces and prevent fires and disasters.
Green procurement
We do our utmost for environmentally-friendly procurement based on our Green Procurement Guidelines (4th Edition), which consist of three components: establishing environmental management systems; improving regulatory compliance and environmental performance; and managing harmful substances. To reduce environmental impacts, we strive to enhance suppliers’ internal organizations and systems and raise the level of their production activities. Positive results have been achieved, such as acquisition of ISO 14001 certification and reduction of energy consumption and waste. We comply with increasingly strict chemical substance regulations around the world and monitor the chemicals contained in items procured from suppliers. We also coordinate with suppliers in complying with European ELV (end-of-life vehicle) and REACH (Registration, Evaluation, Authorization and Restriction of Chemicals) regulations, and in the management of volatile organic compounds.
Collaboration with suppliers
Our partnerships with suppliers are very important to us for smooth business operations. Every April, Toyoda Gosei Co., Ltd. holds a procurement policy briefing with about 200 suppliers of products, machining processes, materials, facilities, and molds. We inform suppliers of upcoming issues and efforts, including our business environment and direction, and share our procurement policy for the year with regard to safety, quality, delivery, price, technology, global expansion and CSR. We also give awards to show our appreciation to suppliers for achievements in their fields, while encouraging all suppliers to continue making progress. Every quarter, we hold a procurement liaison meeting with about 100 suppliers, where we share production information and information on quality improvements, compliance, safety, earthquake measures, confidentiality, chemical substance control and human resources development.
Management seminar for suppliers
To support suppliers' efforts to improve their business performance, we have begun seminars to raise managers' abilities to ascertain and analyze actual business status. This year, one management level employee from each of 33 suppliers participated and heard a lecture on the topic of “Business management for the continuation of stable business relationships” from certified public accountants Kohei Kariya and Keisuke Ueda.
