Toyoda Gosei Co., Ltd. Toyoda Gosei Co., Ltd.

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Supplier Relations

Supply Chain Management

The Toyoda Gosei Group has set a basic procurement policy based on the idea of coexistence and co-prosperity with our suppliers. We aim to deepen our partnerships with suppliers while achieving sustainable growth for us both.

Basic Procurement Policy

1. Optimum Global Procurement

We procure best raw materials, products, and equipment fairly from a global perspective while considering cost, quality, technology, and production. We also welcome proposals from suppliers for new technologies and methods and new products.

2. Mutual Growth Based on Mutual Trust

We aim to raise the collective strength of the Toyoda Gosei Group based on open and fair relationships with suppliers, strengthening our mutual corporate cultures, introducing innovative management, and building mutual trust.

3. Moving Toward Sustainable Societies

Toyoda Gosei has set activity norms as guidelines for initiatives that should be made for the SDGs and other social issues, and shared them with suppliers in carrying out activities. We also aim to ensure complete legal compliance and confidentiality in corporate activities, including our supply chain.

Our Supply Chain

We directly deal with 424 suppliers for products and parts, 327 suppliers for materials and equipment, and a total of 776 suppliers including other suppliers in Japan and overseas. (as of December 2023)

Other Total
Number of suppliers [Toyoda Gosei Co., Ltd.] 424 327 26 776
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.

Initiatives With Suppliers

Initiatives for Sustainability Over Entire Supply Chain

Based on rising expectations for sustainability initiatives in companies, Toyoda Gosei has incorporated content from the Toyoda Gosei Group Human Rights Policy formulated in 2022, revised the Supplier Sustainability Guidelines in a second version in 2023, and asked suppliers to thoroughly understand and implement these policies. We also provide selfcheck sheets for early measures when potential risks are noticed, and ask companies to conduct self-assessments.

These guidelines set policies related to human rights and labor, the environment, compliance, and other matters. In addition to social aspects (child labor, forced labor, no discrimination and equal opportunity, freedom of association, reduction of long working hours, compliance with minimum wages, and health and safety), we ask suppliers to observe environmental aspects such as water use and biodiversity.

Full buy-in was obtained from targeted suppliers in 2023, and based on the results of check sheets from companies targeted for self-checks, 82 companies have developed improvement plans. Necessary support will continue to be provided after confirming the status of improvements.

With regard to the environment, CO2 reductions, recycling of resources including waste, and control of chemical substances is demanded in our Green Procurement Guidelines. For conflict minerals, we ask suppliers to be responsible in their procurement of resources and raw materials. Once a year we conduct a survey on conflict materials with the cooperation of all our suppliers.

As described above, we are accelerating initiatives needed for sustainable growth over our entire supply chain, matched to the various changes in social conditions.

Supplier Sustainability Guidelines
  • Key contents of Supplier Sustainability Guidelines
  • Human Rights, Labor
  • Ethics and Compliance
  • Safety and Quality
  • Risk Management
  • Information Management
  • Environmental Initiatives
  • Responsible Procurement of Materials
  • Social Contribution
  • Promotion of Sustainability Activities
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.

CN Initiative Conference in September 2023. There were 120 participants from 118 companies, including those who participated via the Web.

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.

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

o support our suppliers, we implement various initiatives from the perspective of safety, quality, cost and production. Safety initiatives include prevention activities based on fire prevention inspections of painting and other production equipment and risk assessments. Initiatives related to production include manufacturing site improvement through manufacturing reform activities. Both of these areas are related to personnel development.

We also provide indirect support for the activities of the Kyowa-kai, an organization formed by suppliers for the purpose of mutual improvement and sharing of best practices, and are involved in their activities for human resource development and to achieve carbon neutrality. During Supplier Month (December), we once again express our sincere appreciation for the daily efforts of our suppliers and try to strengthen our support for their sustainability activities.

In 2022, the Kyowa-kai held the Winning (Value) Technology Exhibition with the aim of strengthening each other’s competitiveness by, for example, leveraging the knowledge that suppliers have developed to enhance the added value of our products. In addition, for closer and faster collaboration, efforts were begun in 2023 to take advantage of the strengths of both sides by sharing information on TG’s problems (needs) and the Kyowakai’s proposals (seeds).


Toyoda Gosei Kyowa-kai

The Toyoda Gosei Kyowa-kai is a cooperative association established in 1970 in response to growing social needs for quality. Its aim is the mutual development and prosperity of Toyoda Gosei and our major suppliers. The Kyowa-kai consists of three subcommittees: Equipment & Molds, Rubber & Metals, and Plastics. It conducts various activities in cooperation with Toyoda Gosei, such as holding subcommittee meetings on quality, fire prevention, disaster prevention and safety; workplace improvement and QC circles presentations; participation in Toyoda Gosei level-specific education and domestic and overseas training; and a year-end meeting with company top management.

Partners in together creating future value

Since 1970, the Kyowa-Kai has been working together with Toyoda Gosei, and all companies involved have refined their own technology while meeting Toyoda Gosei’s needs, including for safety, quality, and defect reduction. However, as the automotive industry undergoes major changes, we believe that it is essential to review the association’s activities in order to increase competitiveness. We decided to set a new direction through serious discussions among members, for example through young people’s study groups. The first step in this process is the establishment of a philosophy that clearly states the goals of Kyowa-kai and the launch of three committees. All of these committees are led by members of the Kyowa-kai and are characterized by voluntary activities.

Kyowa-kai is not only an association that focuses on day-to-day production activities, but also a partner that takes a long-term perspective and together creates future value for Toyoda Gosei. We will use these strengthened activities as an opportunity to actively exchange opinions with people at Toyoda Gosei to enhance our partnership and promote activities for the realization of Toyoda Gosei’s business strategy.

Shigemitsu Kondo President of Kondo Seisakusho Co., Ltd. and Chairman of the Toyoda Gosei Kyowa-kai Shigemitsu Kondo
President of Kondo Seisakusho Co., Ltd. and Chairman of the Toyoda Gosei Kyowa-kai

Collaborating with Toyoda Gosei with the aim of growth for both of our companies

The Kyowakai directs its attention toward innovation rather than maintaining the status quo, and its activities aim for the creation of the mechanisms and systems that respective companies need as a partner to Toyoda Gosei, suited to the changing times and circumstances.

We have thought about how we can be the best partners to Toyoda Gosei, and have begun efforts such as the long-term development of each member company’s unique technology and the growth and development of employees.

Each member company participates in the three committees, “Human Resources Development,” “Carbon Neutrality,” and “One Team, One TG,” and conducts activities not only to incorporate the content of the information provided by Toyoda Gosei into our own activities but to transform it into initiatives that are brought out by each company. As a result, we promote collaboration that begins with each company sharing the content of its activities with Toyoda Gosei.

Many examples of this were presented at the FY2023 “Winning Technology Exhibition.” Toyoda Gosei and member companies will continue to carry out these activities to raise added value with the many different technologies that the two sides possess, and we will continue these activities as indispensable partners of Toyoda Gosei going forward.

Yoshinori Kotsuka
President, Kozuka Techno Co., Ltd.
Vice chairman of the Toyoda Gosei Kyowa-kai
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.

Company Internal Initiatives

Employee Education and Training

We strive to follow the “Toyoda Gosei Guidelines for Business Ethics” so that each and every employee engaged in procurement operations can conduct their activities in a manner that is open, fair and equitable toward suppliers.

To achieve sustainable societies, we also make efforts throughout our supply chain with a view to social issues and circumstances. The Procurement Subcommittee holds regular monthly meetings to ensure that procurement activities correspond to various changing social conditions, and all Purchasing Division members are given compliance (subcontracting laws, bribery, etc.), safety, and carbon neutrality information.

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.


Declaration of Partnership Building

In August 2020, Toyoda Gosei announced its participation in the “Declaration of Partnership Building” framework of the Cabinet Office, the Ministry of Economy, Trade and Industry, and others. A Declaration of Partnership Building is a declaration of mutual prosperity for the entire supply chain, and new cooperation that transcends scale, affiliation, and other factors.

Declaration of Partnership Building
Declaration of Partnership Building