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The Mission of Purchasing |
Toyota seeks
to contribute to the "creation of a prosperous society through
automobiles." Toyota also seeks to contribute to society by providing
customers with the most attractive products in the most timely manner.
In order to achieve these objectives, the task of Purchasing is to
ensure "long-term and stable procurement of the best products
at the lowest price in the most speedy and timely manner."
To do this efficiently, Purchasing needs to build the world's No.1 supply
base.
This is achieved by cultivating and deepening ties with suppliers who
share the commitment for creating quality products for customers. |
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A meeting with a supplier |
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| Toyota's Basic Purchasing Policy |
The first policy
is "Fair competition based on an open door policy." Toyota
is open to any and all suppliers, regardless of nationality, size,
or whether they have done business with Toyota before. Toyota's choice
of suppliers is on the basis of purely business considerations. Toyota
evaluates the overall strengths of prospective suppliers, including
their quality, cost, technological capabilities, and reliability in
delivering the required quantities on time, as well as their potential
strengths, as evidenced in such ways as their amenability to continuing
kaizen (improvements).
The second policy is "Mutual benefit based on mutual trust." Toyota
believes in developing mutually beneficial, long-term relationships based
on mutual trust. To foster that trust, Toyota pursues close and wide-ranging
communication with suppliers. One example is the establishment of the
Suppliers Center within the Head Office site in Aichi Prefecture in March
1998. The Suppliers Center features numerous large and small presentation
rooms and provides an opportunity for new product/technology presentation
to suppliers worldwide regardless of their current business relationship
with Toyota. Through such activities, Toyota tries to enhance communications
with both Japanese and overseas suppliers.
Another example is Toyota's annual Global Suppliers Convention. The 2003
convention, which was held in February, was attended by around 380 suppliers.
At the convention, Toyota presented it's annual purchasing policy as
well as awards to the suppliers who displayed significant achievements
in quality, cost, technological development, etc.
The third policy is "Contribution to local economic vitality through
localization: good corporate citizenship." As Toyota moves to globalize
its operations, production outside Japan is increasing rapidly. Toyota
will work to make an economic and industrial contribution that is fully
commensurate with its market presence in each region. That includes purchasing
parts and materials from local suppliers. |
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Toyota Suppliers Center
Presentation room |
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Environmental Actions Taken in Collaboration with Suppliers |
The following actions are underway in accordance
with the Third Toyota Environmental Action Plan.
 See
details on the Third Toyota Environmental Action Plan
(1) Provision of the Purchasing Guidelines to Japanese
and overseas suppliers and follow-ups (promotion of ISO 14001 certification,
management of substances of environmental concern, and provision of data).
(2) Briefings and informational activities for suppliers in Japan concerning
compliance with the EU ELV directive.
(3) Promotion of green purchasing (office supplies and equipment, work uniforms,
etc.).
See
details concerning the above activities |
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Guidelines are issued for different countries
and regions |
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