Together with Suppliers
Using fair and equitable procedures, the Toyota Boshoku group purchases parts, raw materials and equipment from a large number of suppliers throughout the world. Together, we will grow by putting into practice the spirit of a win-win relationship.
Initiatives for suppliers
Basic procurement policy
- Open and fair trade
- Mutual development based on mutual trust
- Promotion of eco-friendly green procurement
- Local procurement as a good corporate citizen
- Thorough legal compliance and ensuring confidentiality
Strengthening legal compliance initiatives
We aim to deepen understanding of, and comply with, laws related to antitrust, subcontracting, labour and the environment as a matter of course in procurement and other business activities. Toyota Boshoku has established compliance themes for important areas and drawn up action plans to promote initiatives for legal compliance.
The Toyota Boshoku group code of conduct specifies a code of behaviour for procurement activities that achieve trust and respect in our relationships with suppliers. Members of the Toyota Boshoku group pledge to act in accordance with these guidelines.
In fiscal 2011, the Global Mainstay Hub held a lecture on subcontracting law for major Japanese suppliers (approximately 90 companies) and subsidiaries in Japan as a means of making all parties thoroughly aware of the key points of subcontracting law as well as obligations and prohibited acts.
Permeation of Toyota Boshoku suppliers CSR guidelines
At Toyota Boshoku, the corporate philosophy, TB Way and Toyota Boshoku group code of conduct form the crux of our CSR policy. We ask all suppliers to familiarise themselves with this policy and are working to permeate the concepts through the formulation of CSR guidelines for suppliers with the aim of mutually contributing to the ongoing advancement of society.
These guidelines are made up of three main pillars in order to fulfil CSR with suppliers. Specifically, these entail sharing the same management stance, requests regarding the provision of products and services, and requests regarding the production process for products and services.
Initiatives in green procurement and green purchasing
At Toyota Boshoku, we preferentially purchase energy-efficient buildings and fixtures as well as green office supplies based on our philosophy of prioritising eco-friendly purchasing across the board and are working to procure safe components and materials in order to leave behind a verdant and abundant environment for the next generation. We will continue aiming to establish a recycling-oriented society by actively pursuing green procurement and purchasing.
Supporting suppliers' efforts to create environmental management systems (EMS)
To help achieve a recycling-oriented society, the Toyota Boshoku group cannot rely on its efforts alone; coordinating environmental protection activities with its suppliers is essential. Toyota Boshoku requires its suppliers of parts, raw materials, auxiliary materials and equipment to establish EMS based on the acquisition of ISO 14001 certification. As a result, in fiscal 2011, 88 of its 92 major suppliers, or approximately 96%, have acquired ISO 14001 certification.
Moreover, Toyota Boshoku is stepping up its efforts to comply with various environmental regulations, which also includes working actively with suppliers to ensure compliance with the REACH regulation*.
- * A regulation on Registration, Evaluation, Authorisation and Restriction of Chemicals enforced in Europe
ISO 14001 certification acquisition
Efforts to create a global procurement system
As business becomes more global in nature, the Toyota Boshoku group is working as a whole to realise optimal global procurement together with suppliers, giving due consideration to all aspects such as quality, safety and cost.
General Meeting of Global Suppliers
Every year, a General Meeting of Global Suppliers is held for Toyota Boshoku's principal suppliers to explain the surrounding business environment and the group's current direction. This is held in order to gain their understanding and cooperation regarding procurement policy. On this occasion, awards were presented to suppliers with outstanding results for fiscal 2011. Subsequently, we requested that each of our suppliers strive to boost quality, provide reasonably priced products and strengthen development of technologies to reduce CO2 in order to further our Customer First stance.
Creation of a cohesive global procurement system
The Toyota Boshoku group is working to create a global procurement system and strengthen ties with suppliers.
We are standardising work processes and making each step more visible in each region of the world, and discussing how best to ensure a timely response in collaboration with the Global Mainstay Hub. To share procurement information globally, we have introduced a fundamental procurement system called TB-WAVE in each region. We are currently registering information in a timely manner and working to share this information.
In addition, we collate and analyse cost data in each region and clarify issues, and have started activities aimed at setting global cost benchmarks so that we can formulate countermeasures. Through these activities, we aim to create an optimal global procurement system.
Deployment of global Supplier Parts Tracking Team (SPTT)* activities
In promoting global operations, it is essential to strengthen and expand ties with suppliers regarding materials, parts, equipment and other items when setting up new production lines and launching new products. The Toyota Boshoku group is promoting activities to assure the quality of its products by helping suppliers in other regions boost the quality of their production processes, beginning with the production preparation stage. Such actions, referred to as global SPTT activities, enable an optimum procurement system that generates comprehensive benefits from different perspectives when purchasing parts externally. Key aspects to be considered include quality, price, distribution and timely delivery.
SPTT activities encourage frequent communication between suppliers and each relevant department through visits, guidance and education in order to solve quality, cost and delivery (QCD) issues with suppliers. These include whether parts are supplied to each plant in a timely manner and whether high quality parts are consistently supplied.
- * SOutsourced production and manufacturing preparation follow-up activities carried out by a team
Global development of basic procurement policy
The Toyota Boshoku group introduces its basic procurement policy via the group website. In fiscal 2011, the basic procurement policy has been posted on the newly established website for the North & South America region. In fiscal 2012, plans call for launching a website for the Europe & Africa region as well, in which we are also planning to introduce our basic procurement policy. We will continuously work to clearly specify the Toyota Boshoku group basic procurement policy to all suppliers in the five regions worldwide while also aiming to realise fair and equitable business dealings and active communication.