Together with Suppliers
Using fair and equitable procedures, the Toyota Boshoku group purchases raw materials, parts and equipment from a large number of suppliers throughout the world based on our basic purchasing policy. Together, we will grow by putting into practice the spirit of a win-win relationship while fulfilling our social responsibilities in the supply chain with the aim of enhancing corporate value.
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
Expanding CSR-related procurement and respecting 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. Furthermore, we are working to strengthen 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 respective countries and regions.
In fiscal 2018, we asked 446 core suppliers in Japan to complete a self-assessment on CSR for the first time. We then provided feedback on the results after clarifying the strengths and weaknesses of each company. In fiscal 2019, we will expand this initiative globally so we can enable CSR-based procurement throughout the supply chain. In addition, we continue to respond to regulatory issues concerning conflict minerals* and are conducting surveys by going back along secondary and tertiary suppliers. At Toyota Boshoku, we conducted a self-check on purchasing ethics and an internal audit for all departments related to orders and confirmed that there were no cases of serious breaches. There were also no reports of dishonesty in a survey regarding supplier satisfaction.
* Conflict minerals are minerals extracted in a conflict zone that are sold to perpetuate the fighting.
Self-assessment on CSR
100% response rate from 446 companies
Promotion of green purchasing
The Toyota Boshoku group is strengthening our response to legal compliance related to various environmental regulations in respective countries and regions based on our Green Purchasing Guidelines, and working actively to reduce environmental burden. We also require our suppliers to establish environmental management systems (EMS) based on the acquisition of ISO certification aimed at creating a sustainable society. In fiscal 2018, we expanded the scope of the requirement.
ISO 14001 certification acquisition
|Certification rate (%)||99||100||100||100||91|
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.
Global Annual Supplier Meeting
In April 2018, we held the Toyota Boshoku Global Annual Supplier Meeting, which was attended by 168 supplier companies from Japan, The Americas, Asia & Oceania, China and Europe & Africa. After explaining our global purchasing policy, we presented awards to 21 companies for their outstanding contribution to the company. We will continue with such activities again in fiscal 2019 together with suppliers to earn the trust of all stakeholders and drive mutual growth.
Creation of a cohesive global purchasing system
Toyota Boshoku is working to create and improve a fundamental system supporting global purchasing foundations. A unit price database for components and raw materials called TB-WAVE has been sequentially rolled out to each entity as a fundamental system to standardise purchasing information from respective countries worldwide. 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.
We will continue improving SPTT activities and rolling them out globally in order to provide customers with even better quality products.