Suppliers

Basic Stance

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. We will grow with our suppliers 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 Social Responsibility in the Supply Chain

In addition to conducting purchasing activities based on the Basic Purchasing Policy, we are working to fulfil our social responsibility throughout the supply chain.

Basic Purchasing Policy

1. Open and Fair Transactions
2. Mutual Development through Mutual Trust
3. Promotion of “Green Purchasing”
4. Promotion of Local Purchasing as a Good Corporate Citizen
5. Law-abidingness and maintaining Confidentiality

Basic Purchasing Policy

Promoting Sustainability Activities

Toyota Boshoku and its suppliers adhere to the following items in basic supplier agreements: (1) Respect of human rights; (2) Prohibiting bribery; (3) Ensuring fair transactions; (4) Removing antisocial forces; and (5) Efforts to conserve the environment. Furthermore, we comply with competition laws, subcontracting laws, labor laws, environmental laws, and other related laws in each country and region, and are working to strengthen sustainability activities throughout the entire supply chain.
Every year during Corporate Ethics Month in September, we carry out initiatives aimed towards maintaining and pushing forward with fair and transparent trade. To do this we investigate supplier satisfaction and ask our suppliers to conduct self-assessments in line with our Supplier Sustainability Guidelines, with the overall aim of deepening understanding and spreading the principles of fair and transparent trade throughout our entire supply chain. Additionally, when we start working with new suppliers they are asked to conduct self-assessments.
When implementing self-assessments also in fiscal 2025, in order to promote sustainability initiatives throughout the supply chain, in October 2024 we held a supplier briefing session to reiterate the importance of Sustainability Guidelines being spread and promoted among all suppliers.
Based on the results of the self-assessments, we made visits to suppliers when necessary, and conducted follow-up surveys by phone. We are promoting sustainability activities through direct dialogue with suppliers, seeking their understanding of our approach by exchanging opinions on points to keep in mind and improvement measures for the future.

Toyota Boshoku group Supplier Sustainability Guidelines

Self-assessment based on Sustainability Guidelines

Question items

1. Compliance
2. Respect for human rights and maintaining appropriate working conditions
3. Efforts to conserve the environment
4. Contribution to society through business activities
5. Risk management
6. Developing and deploying guidelines for your suppliers

A survey regarding supplier satisfaction

Question items

1. Best cost
2. Requests for rationalization without reasonable grounds
3. Requests for urgent response
4. Increase in request items due to streamlined operations and reduced overtime
5. Requests for free-of-charge provision of intellectual property rights and know-how
6. Demand for money, goods, and services
7. Purchasing staff’s behavior for suppliers
8. Response that could lead to quality-related misconduct and data tampering
9. Awareness of Declaration of Partnership Building
10. Other free opinions (for the entire company including other departments)

Building a Global Purchasing System

As the Toyota Boshoku group expands our business globally, we will proceed with local purchasing while considering various items such as safety, quality, and cost. At the same time, our entire group will work together with our suppliers to pursue optimal global procurement.
Every year, we hold a Suppliers Convention to convey the President’s message and Basic Purchasing Policy, and to communicate with our suppliers. We also present awards to suppliers who have made significant contributions in terms of R&D, quality, cost, and delivery.
Commended companies, as well as core suppliers from outside Japan, and Sunshine (Toyota Boshoku suppliers' association) were invited to the FY2026 Suppliers Convention where we strengthened relationships through face-to-face meetings.
In addition, by recording and distributing the contents of the Convention, we worked to strengthen relationships throughout the supply chain, including our suppliers and their second tier and subsequent suppliers. The President’s message, Basic Purchasing Policy and other information provided during the Suppliers Convention were streamed in Japanese, English, and Chinese.

Training and information sharing

To pursue fair and equitable procurement activities, we hold training sessions not only for members of the Purchasing Division but also for all Toyota Boshoku company members and the Toyota Boshoku group company members in Japan, in an effort to ensure appropriate business transactions.
We also aim to disseminate information on social conditions surrounding the Company (compliance, human rights, environment) by holding regular meetings within the Purchasing Segment based on the Supplier Sustainability Guidelines and Toyota Boshoku Group Guiding Principles.

Expansion 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 regions outside Japan 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 engineering and quality control, as well as enable problem solving and mutual benefits from different perspectives, notably for such issues as quality, amount, cost, distribution and timely delivery. Additionally, we maintain an SPTT manual for practical global use, and are continuing to standardize our SPTT activities.
We will continue improving SPTT activities and rolling them out globally in order to provide customers with best quality products.

Supplier Parts Tracking Team activities: Follow-up activities by the team for subcontracted parts production and manufacturing preparation

Toyota Boshoku group’s purchasing information by each region

Promotion of Green Purchasing

Toyota Boshoku recognizes the risks in sustainable development and is committed to the procurement of sustainable raw materials in light of environmental issues such as the effective use of water resources and the creation of a society in harmony with nature. In addition, Toyota Boshoku 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. As part of these efforts, we periodically request certain relevant information from our suppliers, such as CO₂ emission levels and the results of tests done to confirm that substances with harmful environmental effects are not being used. We also require our suppliers to establish environmental management systems (EMS) based on the acquisition of ISO certification aimed at creating a sustainable society.

Green Purchasing Guidelines

Studying with Our Suppliers

Initiatives taken together with our suppliers

We are committed to mutual learning activities to enhance the competitiveness of our major suppliers.
In response to suppliers’ needs, and with an aim toward strengthening the total capability of each company, a supplier’s personnel may be seconded to work within the Toyota Boshoku. In addition, we support the activities of Sunshine with the aim of enabling mutual study and the sharing of exemplary examples between organizations. More specifically, we hold study groups on safety, health, and improving product quality, and we promote both the sharing of good, learnable examples and the resolution of problems faced by suppliers.
Finally, we run a study meeting concerning carbon neutrality and other social issues.

Held a management roundtable meeting run by Sunshine

At a management roundtable meeting run by Sunshine, officers of Toyota Boshoku and representatives of Sunshine discussed issues and measures including “autonomation in MONOZUKURI competitiveness” to educate suppliers on how to secure MONOZUKURI competitiveness.

Hosting of Decarbonization School by Sunshine

We are committed to supporting our suppliers’ carbon neutrality initiatives and have held the “Sunshine Decarbonization School,” which is organized by Sunshine, every year since fiscal 2023. Outside consultants and representatives from the Carbon Neutral Environmental Center act as lecturers at the School, teaching energy-saving techniques and how to develop CO₂ reduction plans. In addition to assisting member companies in setting goals and creating plans, this also supports the development of human resources who can work toward carbon neutrality over the long term.
In addition, in fiscal 2025 we held a study session on GHG emissions Scope 3 for companies that have participated in the Sunshine Decarbonization School to date, in order to deepen their understanding.
We will continue to work closely with our suppliers to promote carbon neutral initiatives that are integrated with the supply chain.