tal leadership by maintaining the performance of more than ... - Toyota

Toyota European Sustainability Report 2011 I Social Performance
54
Engaging with Business Partners
Mark Adams
Vice-President Purchasing
The destruction brought by the tsunami, the interruptions
to electricity and associated logistical access problems,
resulted in serious loss of capacity in Japan for critical
electronic components. These highly sophisticated devices
are widely used by the global automotive industry and
Toyota in Europe was equally impacted.
Production volumes were signifi cantly reduced in April and
May as a result. We were keen to communicate this as
quickly and clearly as possible to our suppliers in Europe
to enable them to plan their own production and manage
their resources effectively. Our new “supplier self service”
communication portal proved valuable in this respect.
Our attention was also drawn to the possible fi nancial
distress that suppliers may be experiencing. The recent
economic crisis had left some suppliers in a fragile
fi nancial condition. The deterioration of cash fl ow due
to volume reduction would require additional customer
support mechanisms. Once again, a daily regime of risk
management was initiated.
We remain true to our principles of quality fi rst, and treat
downtimes as opportunities to improve our processes
and systems to be even stronger for when the good times
return. This spirit of never-ending improvement defi nes the
spirit of Toyota and its suppliers working together to build
a better future.
The Toyota Purchasing Policy
The Global Toyota Purchasing Policy remains the bedrock
for all our business operations in the purchasing division.
2011 brought a new challenge to the
automotive industry via the aftermath of the
Great East Japan Earthquake. We quickly
learnt that the affected region was home to
many suppliers in the lower tiers of the supply
chain, providing key components to many of
our vehicle functions.
In our relationships with suppliers, we identify long term
investment in safety and quality as key pre-requisites of a
sustainable business model.
In spite of the enormous challenges of recovery from the
recent fi nancial crisis, and the earthquake, we remained
consistent in applying the Purchasing Policy pillars.
Safety
Quality
Cost
Production
Mark Adams
Sustainable Growth
CORPORATE SOCIAL RESPONSIBILITY
Toyota’s corporate social responsibility policy drives the
daily operations of the purchasing teams.
Our focus on safety at every aspect of our operations, inhouse
and at suppliers remains the second fundamental
business pillar.
In the area of quality, we set targets to ensure customer
satisfaction that should ensure a path to sustainable
growth.