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 procurement activities based on a basic procurement policy, the Toyota Boshoku group will meet rising demand for CSR activities in the supply chain as business expands.
Basic procurement 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 procurement activities that achieve trust and respect. Members of the Toyota Boshoku group pledge to act in accordance with these guidelines. We have established compliance themes for important areas and drawn up action plans to promote initiatives for legal compliance.
In terms of actual procurement, we have decided on action themes and plans for each priority area and are promoting initiatives aimed at strengthening CSR throughout the supply chain. This includes complying with laws and regulations pertaining to antitrust laws, subcontracting laws, labour laws and the environment 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 2015, at the General Meeting of Global Suppliers, 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. In addition, we held lecture presentations with the theme of developing CSR in the supply chain.
Promoting procurement activities that consider human rights
As a means to strengthen its CSR activities, 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. In fiscal 2014, we completed the update of all supplier agreements in Japan.
Moreover, we continue to respond to regulatory issues concerning conflict minerals that are broad matters of concern in the automobile industry, and we are conducting surveys by going back along secondary and tertiary suppliers every year.
Green procurement and 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*, based on our Green Purchasing Guideline , and we are working actively to reduce environmental burden with all suppliers.
* A regulation on “Registration, Evaluation, Authorisation and Restriction of Chemicals” enforced in Europe
Building of environmental management systems (EMS) at suppliers
The Toyota Boshoku group promotes environmental preservation activities in collaboration with suppliers aimed at creating a sustainable society. Toyota Boshoku requires its suppliers to establish EMS based on the acquisition of ISO certification. As a result, in fiscal 2015, all 87 major suppliers have acquired ISO 14001 certification.
Reinforcing risk management in the supply chain
Toyota Boshoku operates a supplier safety confirmation system at times of large-scale disaster and encourages the formulation of BCPs as part of efforts to strengthen risk management in the supply chain. In fiscal 2015, we roughly doubled the number of suppliers subject to the supplier safety confirmation system as we further expand the scope.
Creation of a global procurement system
As business becomes more global in nature, the Toyota Boshoku group is working as a whole to promote local procurement and realise optimal global procurement together with suppliers, giving due consideration to all aspects such as quality, safety and cost.
Annual Supplier Meeting
Every year, a Global Annual Supplier Meeting and Annual Supplier Meeting in each region are held for Toyota Boshoku group principal suppliers to explain the surrounding business environment and the group’s current direction. This is held in order to deepen communication with suppliers and gain their understanding and cooperation regarding procurement policy.
In fiscal 2015, we pushed ahead with preparations to establish this framework in each region with a view to inviting excellent suppliers from each region to the Toyota Boshoku Global Annual Supplier Meeting to be held in 2018. In China, we held general meetings in Guangzhou in addition to Chengdu.
Creation of a cohesive global procurement system
The Toyota Boshoku group is creating a global procurement system and is working to deepen connections with all suppliers. As a fundamental system to standardise procurement information from respective countries worldwide, a unit price database for components and raw materials called TB-WAVE has been rolled out to such entities as ASEAN and Europe & Africa for the first time. Moreover, we launched a cost benchmark system related to components and raw materials that is connected with TB-WAVE on a global scale. This is being deployed to respective regions while dealing with any operational issues.
Deployment of global Supplier Parts Tracking Team (SPTT) activities
In deploying global operations, it is becoming increasingly important 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 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, referred to as global SPTT activities, help create face-to-face ties between suppliers and members of various divisions, including procurement, design and quality control, as well as enable problem solving and mutual benefits via genchi-genbutsu from different perspectives, notably in such areas as quality, amount, price, distribution and timely delivery.
In fiscal 2015, we continuously placed emphasis on preventing problems in quality and manufacturing and production preparation by building bridges from developed to developing nations in addition to conducting the activities in each country. To this end, we realised the smooth start-up of production activities in Thailand, Indonesia, India and Argentina to South Africa.
We also worked to nurture human resources who can promote SPTT activities in each region. In fiscal 2015, we held meetings on global SPTT activities in which we shared global and local issues and discussed initiatives.