The Story of Sakichi Toyoda
Sakichi Toyoda, the founder of Toyota Industries Corporation, possessed a strong ambition to contribute to society from his days as a youth. He had devoted his 63-year-long life to invention.
Toyota Industries encourages open procurement and seeks co-existence and co-prosperity with our business partners (suppliers) based on mutual trust. We also facilitate environmentally preferable purchasing, CSR-oriented procurement practices, human resources development and disaster prevention activities for a possible major earthquake.
To achieve open procurement, we provide fair and equal opportunities to all potential business partners on our Website.
We comprehensively evaluate our business partners based on such factors as quality, price, adherence to delivery times, technological capabilities and management information. We also assess their initiatives for safety, the environment and compliance as we strive for the timely and stable procurement of excellent products at lower costs based on fair business transactions.
We work hard to realize co-existence and co-prosperity with our business partners based on mutual trust. Every year, we hold procurement policy meetings and top manager seminars for major business partners to facilitate mutual understanding and cooperation. In addition, we provide such programs as quality management and technical skills training, guidance directed toward kaizen at their production sites and safety and health education throughout the year.
In order to create environmentally friendly products, we aim to procure parts, raw materials and equipment from business partners that give sufficient consideration to the environment.
In October 2016, we published the sixth edition of our Environmentally Preferable Purchasing Guidelines, which we have
formulated to enforce “green” purchasing. In the sixth edition, we responded to the increasing global call for stricter environmental requirements throughout the product lifecycle by adding to the guidelines the goals we are pursuing for the year 2050 as well as provisions to ensure greater environmental management in our entire supply chain.
In view of increased local production outside Japan, we promote procurement from local business partners in order to contribute to the local community through consolidated subsidiaries as a good corporate citizen.
We proactively provide education to enhance procurement knowledge both internally and externally. In fiscal 2017, we provided training on Japan’s subcontracting law to strengthen compliance, with seminars attended by 1,030 Toyota Industries employees and 150 participants from affiliated companies. We also held seminars for those who have missed previous ones, and all applicable individuals have completed this training. Along with sharing a model to develop procurement professionals across all procurement departments of Toyota Industries with the aim of improving the knowledge of procurement personnel, we have started providing basic education on procurement as well as financial education. We also work with Hoeikai, an organization consisting of our business partners, to provide support to strengthen the management platforms of member companies through Toyota Production System (TPS) activities in manufacturing and QC circle activities
In September 2016, the Ministry of Economy, Trade and Industry released Basic Policies for Future-oriented Trade Practices, requesting all industries in Japan to “formulate voluntary-based action plans toward the further introduction of fair trade and the improvement of added value across whole supply chains.” Accordingly, we conducted a review of our payment conditions for subcontracting business partners and decided to entirely switch from payment in bills and notes to payment in cash starting from fiscal 2018. As part of our efforts to become a “company on which society places greater trust,” we established a business partner hotline, through which we receive their opinions and inquiries and external lawyers take appropriate action for each case.
In the wake of a series of earthquakes that hit Kumamoto in 2016, we reviewed our previous BCP activities and identified deficiencies. In further promoting our BCP activities, we are making concerted efforts with business partners to reduce associated risks by implementing specific measures. In fiscal 2017, as a new initiative to ensure the smooth launch of a production restoration phase after a disaster, we provided production restoration workshops (tabletop exercises) to our major business partners.