Purchasing
Overview
The mission of purchasing is to 'create a purchasing infrastructure, respected and trusted by the public and equipped with competitive ability, through which maximum quality can be purchased at minimum cost for a timely and steady long-term supply'. To fulfill this mission, purchasing divisions coordinate their operations with suppliers and with the various internal functions, from design and production preparation (production engineering) to manufacturing, at each of the different stages-from vehicle development to production preparation, mass production, and spares supply.
In 2009, Toyota's purchasing divisions formulated the 'Toyota Way in Purchasing', which makes a clear statement of common principles and policies to be followed by staff engaged in purchasing operations at all affiliates worldwide. The basis for this was formed by the practices that have been cultivated in Toyota's relations with suppliers since its foundation.
The Purchasing Staff Handbook issued at the time of Toyota's foundation sets out an approach of always keeping the door open to better quality goods and better suppliers, an approach that has lived on through Toyota's basic principle for fair competition based on an open door policy. Toyota believes that realizing its policy of 'mutual benefit based on mutual trust' means that suppliers must run their operations reliably and requires a united approach of supporting each other through good and bad times and overcoming difficulties together.
Since activities to promote local purchasing*began in earnest with the 1984 start of operations at NUMMI, Toyota has contributed to local communities by actively encouraging purchasing from local suppliers. In this way, through its policy of 'promoting localization and contributing to local economic vitality as a good corporate citizen', Toyota has adhered consistently to the approach of 'contributing to the company and to the overall good' which is laid down in the Five Main Principles of Toyoda.
In recent years, enterprises have been called upon to show awareness of social responsibility and the environment in their activities. Toyota has responded in its purchasing activities by taking account of these fundamentals at the levels of safety, quality, production, and cost.
- *
- Promotion of local purchasing means switching from a system of exporting parts produced and manufactured in Japan to a system where parts are produced and manufactured locally, i.e. in the country or region of vehicle production, or are purchased from producers and manufacturers based in that country or region.
Year
|
Month
|
Toyota events
|
Kyoryokukai (cooperative association) events
|
---|---|---|---|
1937
|
September
|
Post of purchaser created in Administration Division; responsible for checking the production progress of ordered parts as well as inspecting them and monitoring delivery schedules
|
|
1938
|
May
|
Purchasing and monitoring functions in Administration Division separated and Purchasing Division established
|
|
1939
|
June
|
Purchasing Division established in Tokyo Field Office
|
|
November
|
|
Toyota Subcontractors' Round Table Conference held and cooperative association established with 18 participating companies
|
|
1940
|
|
Purchasing staff appointed to Osaka Field Office
|
|
1943
|
December
|
|
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1946
|
July
|
|
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1947
|
January
|
|
|
January
|
|
||
1958
|
April
|
Purchasing Division moved to Nagoya Office (to speed up contacts between suppliers and corporate center)
|
|
1960
|
August
|
Purchasing Division moved to Head Office (Toyota City) following completion of Main Building office
|
|
1962
|
March
|
Purchasing Division consolidated at Head Office by moving Mechanical Engineering Section and Facility Purchasing Section from Nagoya Annex
|
|
April
|
|
Seihokai established (made up of mold, jig, and gauge manufacturers)
|
|
November
|
|
Eihokai established (made up of facility manufacturers)
|
|
|
Cost reduction activity commenced with introduction of value analysis (VA)
|
|
|
1963
|
February
|
Divisions separated into Purchasing Division 1 and Purchasing Division 2
|
|
1965
|
October
|
1st Suppliers Quality Control Study Meeting held
|
|
1966
|
February
|
Purchasing Management Division established
|
|
July
|
|
Seihokai holds Skills and Technology Improvement Convention
|
|
1973
|
|
|
Toyota Related Parts Health Insurance Union established with exceptional authorization from Ministry of Welfare; 43 member companies
|
1974
|
May
|
|
Activities of Materials Committee commenced;
- committee to respond to oil crisis by comprehensively researching conservation of resources, energy, and materials |
August
|
|
Toyota Clean Plaza opened
|
|
1975
|
August
|
Housing materials staff appointed to Purchasing Division 2 following expansion into housing business
|
|
1976
|
May
|
|
Kanto Kyohokai holds training on Toyota Production System
|
July
|
|
Tokai Kyohokai receives award from Minister of Labour
|
|
1977
|
February
|
Cost control staff in Purchasing Management Division increased to two to strengthen cost planning and control structures
|
|
1978
|
|
70% operating rate system implemented (until 1979)
|
|
|
Study meetings for parts-specific suppliers enhanced
|
|
|
1979
|
December
|
Overall quality inspection activities commenced
|
|
|
Activities started for customs bonding of import parts and tax exemption for re-export
|
|
|
|
VE/VA suggestion system introduced
|
|
|
1980
|
|
Response to product innovation improved (conversion to FF/new engines/EFI, etc.)
|
|
|
Award system for outstanding suppliers introduced
|
|
|
|
Order placement meeting established
|
|
|
1981
|
|
Initiatives to improve supplier technological capacities strengthened
|
|
|
Suggestion system for new products and technologies introduced
|
|
|
|
Disassembled parts exhibition established
|
|
|
1982
|
February
|
|
Toyota Co-operation Club (TCC) established in Thailand
|
|
Purchasing functions for spare parts, accessories, and special-purpose vehicles integrated (suppliers, payment conditions, pricing, systems, etc.)
|
|
|
1983
|
April
|
|
Eihokai established through integration of former suppliers' organization Eihokai (made up of facility manufacturers) and Seihokai (made up of mold, jig, and gauge manufacturers)
|
|
Purchasing divisions participate in activities of Committee to Enhance Interior Parts Product Strength
|
|
|
|
Purchasing divisions participate in activities of NUMMI Purchasing Subcommittee
|
|
|
1984
|
|
Purchasing divisions participate in activities of Maru-E Project Team
|
|
|
Spare parts standardization activities commenced
|
|
|
|
CCR activities commenced
|
|
|
1985
|
February
|
Organizational changes implemented including transfer of Tokyo branch Purchasing Division to head office and establishment of Logistics Department
|
|
|
Initiatives implemented as part of North America project activities
|
|
|
|
Activities to improve manufacturing methods for small-lot items commenced
|
|
|
1986
|
April
|
General Quality Inspections changed to Quality Assurance (QA) Inspections
|
|
October
|
Committee for urgent response measures to yen appreciation established
|
|
|
|
Energetic promotion of VE/VA and other cost reduction activities
|
|
|
|
Internal and external study groups for research and development items established
|
|
|
1987
|
January
|
|
Joint conventions for Kyohokai and Eihokai commenced
|
January
|
Operation of new materials system commenced
|
|
|
March
|
Operational audit to enhance purchasing planning system conducted; globalization of purchasing, etc. considered
|
|
|
July
|
|
Toyota Manufacturers Club (TMC) established in Indonesia
|
|
September
|
JAMA-MEMA Liaison Committee Meetings commenced
|
|
|
|
Secondment of employees to Kuozui Motors (Taiwan) and TMCA (Australia) commenced (thereafter, personnel dispatched to major sites)
|
|
|
1988
|
February
|
Parts Section 3 becomes Overseas Purchasing Department
|
|
|
Camry parts imported from TMMK
|
|
|
1989
|
August
|
International Purchasing Division established
|
Bluegrass Automotive Manufacturers Association (BAMA) established in the U.S.
|
September
|
|
K.C.C. Kuozui Co-operation established in Taiwan
|
|
October
|
International coordination program
|
|
|
October
|
Domestic and North American guarantee period extended
|
|
|
1990
|
October
|
1st North American Import Suppliers' Meeting held (2nd Meeting held in November 1991)
|
|
|
Creation of logistics systems reaching to Toyota Motor Hokkaido, Inc. and Toyota Motor Kyushu, Inc. completed
|
|
|
1991
|
January
|
Purchasing policy addresses the issue of six million vehicle production capacity
|
|
June
|
Activities to standardize parts categories implemented
|
|
|
December
|
New international coordination program implemented
|
|
|
1992
|
September
|
Special VA activities commenced
|
|
June
|
First Maru I commenced (until September 1992)
|
|
|
|
U.S Voluntary Program implemented.
|
|
|
1993
|
February
|
Urgent VA activities conducted
|
|
June
|
Second Maru I commenced (until October 1993)
|
|
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July
|
First Parts Ordering Mini Conference commenced (until September 1994)
|
|
|
September
|
Improvement Promotion Department established
|
|
|
1994
|
April
|
|
Toyota Supplier Networks (TSN) established in Australia
|
September
|
Suppliers Ordering Mini Conference commenced (until May 1995)
|
|
|
|
Groundbreaking cost reduction activities commenced
|
|
|
1995
|
January
|
China Group established in International Purchasing Division
|
|
January
|
Activities commenced for recovery of suppliers following the Great Hanshin-Awaji Earthquake
|
|
|
April
|
Changes made to parts of procedures for setting of quality targets
|
|
|
May
|
Second Parts Ordering Mini Conference commenced
|
|
|
|
JAMA-CLEPA Business Conference commenced
|
|
|
1996
|
January
|
VE activities started to improve product strength
|
|
June
|
Suppliers briefing meeting on NBC activities held
|
|
|
August
|
Trial of Global Body Line (GBL) commenced at TMV (Vietnam)
|
|
|
|
Acceptance of Intra Company Transferees (ICT) commenced
|
|
|
1997
|
February
|
|
Toyota In Europe Association Of Manufacturers (TEAM) established in Europe
|
June
|
International Purchasing Division abolished
|
|
|
August
|
|
Toyota Suppliers' Club established in Malaysia
|
|
|
Overseas affiliates participate in TMC buyer training
|
|
|
|
Business dealings commenced with Panasonic EV Energy Co., Ltd. (now Primearth EV Energy Co., Ltd.) and Tamagawa Seiki Co., Ltd. as suppliers of parts for hybrid vehicles
|
|
|
1998
|
January
|
Production Preparation Support Department established
|
|
April
|
Suppliers Center established
|
|
|
September
|
Excellent Quality (EQ) Committee talks held
|
|
|
November
|
Suppliers briefing meeting on fixed cost reduction activities conducted
|
|
|
1999
|
February
|
Toyota Suppliers Convention held; overseas suppliers invited
|
|
March
|
Environmental Purchasing Guidelines presented to suppliers
|
|
|
April
|
|
||
July
|
Japan Management Standard (JMS) issued
|
|
|
2000
|
February
|
Global Contribution Awards instituted as supplier awards presented at Toyota Suppliers Convention
|
|
June
|
|
Toyota Suppliers Club (TSC) established in Philippines
|
|
July
|
'Construction of Cost Competitiveness for the 21st Century' (CCC21) activities commenced
|
|
|
October
|
Urgent quality response briefing meeting held for suppliers
|
|
|
October
|
Global Purchasing System introduced at TMMNA (U.S.)
|
|
|
November
|
Quality Exhibition held
|
|
|
|
Activities aimed at shortening development lead?times (AD21) commenced
|
|
|
2001
|
January
|
'IMV community' established in Thailand
|
|
January
|
Organizational changes implemented (3 divisions and 12 departments changed to 2 divisions and 9 departments);
Purchasing Division 1 and Purchasing Division 2 integrated as Purchasing Division; Purchasing Planning Division renamed Global Purchasing Planning Division |
|
|
February
|
IMV suppliers convention held
|
Toyota Kirloskar Suppliers Association (TKSA) established in India
|
|
February
|
Chairman of Overseas Supplier Cooperative Association invited to Toyota Suppliers Convention
|
|
|
December
|
Suppliers meeting held on fixed cost reduction activities
|
|
|
December
|
Suppliers briefing meeting held on Toyota in-house production fixed cost reform initiatives
|
|
|
2002
|
February
|
Toyota Global Suppliers Convention (former Toyota Suppliers Convention) held;
thereafter, Convention held yearly |
|
|
Overseas Trainees Culture Language Business (OT-CLUB), a program for young trainees to study at overseas affiliates, commenced
|
|
|
2003
|
June
|
Quality ambassador activities begun
|
|
September
|
Orders Conference renamed Global Orders Conference
|
|
|
|
Special Prize for Reduction of Parts Category launched as part of Supplier Awards System
|
|
|
2004
|
February
|
Purchasing policy for outstanding process creation explained at Toyota Global Suppliers Convention
|
|
February
|
Digital Engineering (DE) Liaison Meeting held
|
|
|
April
|
Hybrid Group established
|
|
|
|
Special Prize for Overseas Region Contribution instituted as part of supplier award
|
|
|
2005
|
January
|
Organizational changes implemented (2 divisions and 9 departments changed to 3 divisions and 8 departments):
Global Purchasing Planning Division, Purchasing Division 1, and Purchasing Division 2 |
|
February
|
Request for domestic production expansion presented at Toyota Global Suppliers Convention
|
|
|
April
|
Customer First (CF) Activity Promotion Committee formed
|
|
|
May
|
Value Innovation (VI) activities commenced
|
|
|
August
|
Suppliers CF briefing meeting held
|
|
|
October
|
Briefing meeting held on revision of basic agreements for parts purchase
|
Toyota South Africa Supplier Association (TSASA) established in South Africa
|
|
|
Initiatives for outstanding process creation commenced in coordination with suppliers
|
|
|
2006
|
February
|
|
Brazilian Automotive Suppliers Association (TDB) established in Brazil
|
March
|
Environmental Purchasing Guidelines revised
|
|
|
April
|
|
Asociacion Proveedores Toyota Argentina (APTA) established in Argentina
|
|
May
|
|
Local study tours commenced by the Kyohokai and Eihokai
|
|
June
|
Hands-on safety experience facilities toured and tested
|
|
|
June
|
Suppliers briefing meeting on concerted CF activities held
|
|
|
October
|
Briefing meeting held on suppliers CF activity development
|
|
|
2007
|
May
|
Seminar on jikotei kanketsu (building in quality in each process) held
|
|
June
|
CSR related study sessions commenced
|
|
|
October
|
Information session on 'Automobile Industry Fair Transaction Guidelines' held
|
|
|
November
|
Collection of effective earthquake countermeasures compiled
|
|
|
December
|
Presentation on examples of jikotei kanketsu held
|
|
|
2008
|
January
|
Organizational changes implemented (3 divisions changed to 4 divisions and 1 department):
Purchasing Planning Department, Global Purchasing Promotion Division, Body Parts Purchasing Division, Unit Parts Purchasing Division, and Materials and Facilities Purchasing Division |
|
April
|
|
Kyohokai study group on jikotei kanketsu for employees held
|
|
May
|
Urgent value analysis (VA) activities commenced;
briefings held on May 21 and 22 for Kyohokai member companies |
|
|
August
|
Cost reduction reforms for compact cars (A-EQ activities) commenced (until November 2009)
|
|
|
2009
|
February
|
CSR Guidelines for Toyota Suppliers adopted
|
|
March
|
CSR study session series for suppliers started
|
|
|
May
|
Toyota Way in Purchasing developed
|
|
|
December
|
RR-CI activities commenced as cost innovation measures aimed at producing good products at affordable prices
|
|
|
2010
|
January
|
Organizational changes implemented (4 divisions and 1 department): Purchasing Administration Department, Body Parts Purchasing Division, Unit Parts Purchasing Division, and Materials and Facilities Purchasing Division
|
|
2011
|
January
|
Organizational changes implemented (4 divisions and 1 department):
Purchasing Planing Department, Purchasing Project management Division, Body Parts Purchasing Division, Unit Parts Purchasing Division, and Materials and Facilities Purchasing Division |
|
March
|
Great East Japan Earthquake task force established
|
|