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 while fulfilling our social responsibilities in the supply chain.
Open, Fair and Transparent Trade and Implementation of CSR Activities in the Supply Chain
In addition to conducting purchasing activities based on a basic purchasing policy, we are working to strengthen CSR throughout the supply chain.
Basic purchasing policy
- Open and Fair Transactions
- Mutual Development through Mutual Trust
- Promotion of “Green Purchasing”
- Promotion of Local Purchasing as a Good Corporate Citizen
- Law-abidingness and maintaining Confidentiality
Strengthening CSR in the supply chain
The Toyota Boshoku group code of conduct specifies a code of behaviour for purchasing activities that achieve trust and respect and all group members pledge to act in accordance with these guidelines.
In terms of purchasing, we are working to meet stakeholder expectations and contribute to social value by strengthening CSR throughout the supply chain. This includes complying with laws and regulations pertaining to antitrust laws, subcontracting laws, labour laws and environmental laws in Japan as well as similar laws and regulations in regions outside Japan. We also seek to contribute to local communities and create a risk management system for large-scale disasters.
In fiscal 2016, at the Global Supplier Meeting, we requested Toyota Boshoku’s major suppliers (approximately 100 companies) to work on quality assurance in the supply chain, including secondary and tertiary suppliers, production preparations and appropriate preparations for safety and major disasters as key themes to strengthen risk management.
Promoting purchasing activities that consider human rights
Toyota Boshoku requests the following for its basic supplier agreements: (1) Respect of human rights and building awareness of social responsibility in the supply chain; (2) Prohibiting bribery; (3) Ensuring fair transactions; and (4) Removing antisocial forces. We continue to respond to regulatory issues concerning conflict minerals*1 and are conducting surveys by going back along secondary and tertiary suppliers.
In fiscal 2016, we held CSR-related workshops related to the role of women and deepened the understanding of top management from supplier companies. In fiscal 2017, we will promote CSR-related procurement by formulating and distributing the Toyota Boshoku Supplier CSR Guidelines and implementing self-assessments.
*1 Conflict minerals are minerals extracted in a conflict zone that are sold to perpetuate the fighting.
Promotion of green purchasing
The Toyota Boshoku group is strengthening its response to legal compliance related to various environmental regulations in respective countries and regions, including the global REACH Regulation*2, based on our Green Purchasing Guidelines , and we are working actively to reduce environmental burden with all suppliers. In fiscal 2016, we revised the Green Purchasing Guidelines based on the 2050 Environmental Vision and issued them in June 2017. We aim to extend the guideline throughout the supply chain.
*2 A regulation on “Registration, Evaluation, Authorisation and Restriction of Chemicals” enforced in Europe
Building of environmental management systems (EMS) at suppliers
Toyota Boshoku requires its suppliers to establish EMS based on the acquisition of ISO certification aimed at creating a sustainable society. As a result, in fiscal 2016, 90 major suppliers have acquired ISO 14001 certification. In fiscal 2017, we will expand the scope of companies aiming to acquire certification to approximately 300.
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Reinforcing risk management in the supply chain
Toyota Boshoku operates a supplier safety confirmation system at times of large-scale disaster as part of efforts to strengthen risk management in the supply chain. In fiscal 2016, we expanded the scope of operation to include impact and damage caused by typhoons and heavy snow, reviewed the business continuity plan (BCP) and improved the precision of supply chain information as part of efforts to build a platform to ensure the system is functioning smoothly. We are also holding study sessions for small- and medium-sized suppliers with the aim of promoting formulation of BCPs.
Creation of a Global Purchasing System
As business becomes more global in nature, the Toyota Boshoku group is working as a whole to promote local purchasing and realise optimal global purchasing together with suppliers, giving due consideration to all aspects such as quality, safety and cost.
Annual Supplier Meeting
A Global Annual Supplier Meeting and Annual Supplier Meeting in each region are held for Toyota Boshoku group principal suppliers to share the group’s current direction. This is held in order to deepen communication with suppliers.
In fiscal 2016, we introduced a product business-based organisation and conveyed respective Product Business Group policies in addition to our purchasing policy. Moreover, in each region we pushed ahead with preparations to invite excellent suppliers from each region to the Toyota Boshoku Global Annual Supplier Meeting to be held in 2018.
Creation of a cohesive global purchasing system
In fiscal 2016, as a fundamental system to standardise purchasing information from respective countries worldwide, a unit price database for components and raw materials called TB-WAVE has been rolled out to entities such as those in ASEAN and Europe & Africa regions. Moreover, we launched a cost benchmark system related to components and raw materials that is connected with TB-WAVE. At the same time, this is being deployed to respective regions while dealing with any operational issues.
Deployment of global Supplier Parts Tracking Team (SPTT) activities
The Toyota Boshoku group is promoting global SPTT activities to assure the quality of its products by helping suppliers in other regions enhance their production processes, from beginning with the production preparation stage to getting their businesses on track after the launch of new products. Such actions help create face-to-face ties between suppliers and various divisions, including purchasing, design and quality control, as well as enable problem solving and mutual benefits from different perspectives, notably in such areas as quality, amount, cost, distribution and timely delivery.
In fiscal 2016, purchasing, design and quality control divisions in Japan each took steps to verify supplier wants and conditions via genchi-genbutsu (Go, see and study) along with local SPTT members as a means to solidify our footing with activities to prepare for the global production and manufacturing of vehicles in the future. We will continue improving SPTT activities and rolling them out globally in order to provide customers with even better quality products.