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, human resources development, fair trade, disaster prevention activities for a possible major earthquake and other disasters and more efficient purchasing.
We provide fair and equal opportunities to all potential business partners. 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 control and technical skills training, guidance directed toward Kaizenen at their production sites and safety and health education throughout the year.
We aim to procure parts, raw materials and equipment from business partners that give sufficient consideration to the environment.
In the sixth edition of our Environmentally Preferable Purchasing Guidelines, we added the aspirations in 2050 of our Environmental Vision. Accordingly, we have been strengthening environmental management in our entire supply chain and undertaking relevant initiatives throughout the product lifecycle.
Toyota Industries Corporation and its Group Companies have been promoting the procurement of minerals* that gives consideration to environmental impact as well as social problems such as human rights infringement.
We conduct inquiries about the usage of conflict minerals, and we will take appropriate steps to avoid procurement of materials that could cause social injustices or finance armed groups.
* For examples ; "conflict minerals" that originate from the Democratic Republic of the Congo and adjoining countries, and are mined through non-humanitarian acts, and used to finance armed groups.
We proactively provide education to enhance procurement knowledge both internally and externally. In fiscal 2020, we again provided training on risk management, including education on Japan’s Subcontracting Law, response to labor issues that are closely related to their daily operations and appropriate sale of waste. These seminars were attended by participants from affiliated companies and Hoeikai, an organization consisting of our business partners. We also work with Hoeikai to provide support to strengthen the management platforms of member companies through Toyota Production System (TPS) activities in manufacturing and QC circle activities.
As part of efforts to realize fair trade throughout the supply chain, Japan’s Ministry of Economy, Trade and Industry has announced an action plan for proper management of molds for parts. In response, Toyota Industries has set up a mold management project and examined how we can “reduce molds, revise management and establish new systems” as stipulated in the action plan. In fiscal 2020, we laid down clear rules for mold management and shared them with our business partners, thereby completing our work concerning the action plan.
In further promoting our BCP activities, we are making concerted efforts with business partners to reduce associated risks by implementing specific measures. In fiscal 2020, to deal with frequent natural disasters in recent years, we extended the scope of our IT system-based damage assessment from earthquakes to other natural disasters. We will also identify business partners with flood risk based on hazard maps and take action accordingly.
In the face of the spread of COVID-19, we have also started implementing measures against infectious diseases in order to reduce supply risks in our supply chain caused by an excessive concentration of production at a specific site.