Suppliers
Supporting suppliers
Toyota Australia makes a significant contribution to the local economy by supporting local suppliers.
Sourcing components from the domestic market is an important part of achieving self-reliance as it reduces the exposure to exchange rate movements and strengthens the Australian economy. Approximately 70 per cent of Toyota Australia's original equipment purchases in 2010/11 were sourced from local suppliers.
The value of buy and number of total suppliers remained stable in the past year. The value of buy was $2.5bn in 2010/11, the same as in 2009/10, and the number of suppliers was 1,795 in 2010/11 compared to 1,805 suppliers in 2009/10.
Key
- IP: Indirect Purchasing: Indirect purchases of goods and/or services to support the operation and maintenance of all buildings, plant and equipment as well as all corporate services.
- DP: Direct Purchasing: Locally procured components (and raw materials) required for the manufacture of locally-manufactured vehicles.
- SP&A: Service Parts and Accessories: Locally procured services parts and accessories to support aftermarket sales.
Engaging with Suppliers
Toyota Australia holds an Annual Supplier Conference which provides a forum for the company to present suppliers with key policies and strategies for the future and reflect on topical issues from the previous year.
The 2011 conference theme was 'Our Commitment, Our Future, Our Industry'. Presentations on the day focused on the impact of the Great Japan Earthquake, Toyota Australia's commitment to Australia's automotive industry, Toyota's global strategy to strengthen quality, global supply chain competitiveness and Purchasing expectations.
There was also emphasis placed on the key actions that suppliers and Toyota Australia should take to ensure industry growth, including strengthening the capability of the workforce to improve safety, quality and cost, and pursuing opportunities to create a more efficient and competitive supply base.
The Annual Supplier Awards were presented at the conference in recognition of Supplier performance in 2010. Denso Australia won the 'President's Supplier of the Year' award. The other award winners for Performance Excellence were:
| Award Category | Winner |
|---|---|
| Safety | TT Steel Centre Australia |
| Quality | Australian Arrow |
| Cost Improvement | Fujitsu Ten (Aust) |
| Value Analysis | SEWS Australia |
| Design and Development | Exide Technologies |
| Industry Contribution | Toyota Boshoku Australia |
| Toyota Production System | Denso Australia |
| Environment | Robert Bosch (Australia) |
Robert Bosch Wins Toyota's Supplier Environment Award
Automotive components supplier Robert Bosch won the Environment Award at the Annual Supplier Awards in recognition of its innovative environmental initiatives including:
- Recycling plastic packaging from electronic manufacturing areas which has resulted in 20 tonnes of plastic packaging being diverted from landfill in 2010 and a cost saving of $4,300.
- Reducing plastic shrink wrap usage by working with suppliers to replace the wrap with two plastic straps on Bosch owned returnable packaging. This has resulted in a reduction of 40,000 metres of shrink wrap usage compared to the previous year and saved $4,500.
- Reusing pallets which has resulted in 19.5 tonnes of pallets being reused, saving $10,000.
Supplier Development
Toyota Australia recognises that its future growth and sustainability is dependent on having strong and capable local parts manufacturers. Toyota continues to work closely with government and industry to implement supplier improvement initiatives including the Automotive Supply Chain Development Program (ASCDP) and the Automotive Supplier Excellence Association (ASEA). Both programs continue to work towards industry alignment to develop a globally-competitive Australian automotive industry.
During 2010 Toyota Australia increased its resources allocated to supplier development and expanded its current supplier development initiatives on safety and quality, new model preparation and environmental management. ASCDP support will continue to mid-2013.
Environmental Risk Management
While Toyota Australia has long had corporate and supply chain best practice environmental strategies, these activities have been intensified in recent years as the company prepares for an environment in which energy is becoming more expensive and there is a price on carbon. Toyota Australia has a dedicated resource devoted to the environmental risk management of suppliers.
Toyota Australia's environmental risk management activities include:
- Continuing to support, where required, any suppliers in achieving ISO14001 certification
- Continuing to promote management and further reductions in the use of substances of concerns
- Implementing a CO2 reduction strategy for suppliers
- Fostering a zero-waste culture towards manufacturing and environmental leadership in the supply chain
- Sharing best practice initiatives with the wider community.
Toyota Supplier Corporate Social Responsibility (CSR) Guidelines
Suppliers of original equipment and service parts and accessories receive guidelines on CSR. The guidelines, which were developed by Toyota Motor Corporation, clarify the expectations of its suppliers in the areas of safety, environment and human rights. The guidelines state that suppliers should not use forced labour or child labour; that they need to comply with local applicable laws governing employees' working hours; and that they should recognise employees' right to freely associate, or not to associate.
To read the guidelines please click here