Following on from the various crises of 2009, 2010 and 2011, Toyota has surged back to reclaim the title of top global automotive manufacturer (by volume). There are a series of factors supporting this recovery, but in much the same way that the supplier community assisted the OEM to maintain output during those bad years, those same companies have been integral to the company’s on-going rebound.
As the company increases output, this support has centred around managing to deliver a substantial increase in total part volumes, a difficult task after many tier suppliers had reduced production capacity in line with Toyota’s declining output over the preceding years. This has meant investing to ramp up in line with output, while still developing new technologies and working with the OEM to support production of next-generation models.
The other side to the coin is that many of the preferred suppliers working with Toyota are also part owned by the OEM and further, many of those same companies rely on the OEM for most of their business, so there is a vested interest in supporting the carmaker. In some cases, the close ties between the OEM and tier suppliers has resulted in pricing designed to stifle competition, which has resulted in some supplier executives facing heavy fines and even time in prison – without a doubt, this is the darker side of automotive supply.
In addition to covering the very different strategies Toyota uses to manage these inter-company relationships in Japan and other global regions, Supplying Toyota looks at virtually every other area of supply and production, looking at how the OEM is carrying out regional expansion and the decentralization of control from the home market, through to how the Toyota New Global Architecture will affect purchasing. Additionally, the report includes an interview with Emin Atac, director, Purchasing, for Toyota Motor Europe, who talks about how purchasing is managed across the region and coordinated with Toyota Motor Corporation out of Japan.
Table Of Contents
Supplying Toyota Overview Global market overview Financial data Toyota financial overview
Product and platform strategy Strategy review Major model programmes Corolla Camry Prius Yaris/Vitz RAV4 Etios Innova Tacoma and Tundra Land Cruiser Hiace Platform strategy Major platforms 1. MC-M (inc. Toyota Camry, RAV4, Prius, Highlander, Avalon, Avensis, Lexus RX) 2. MC-C (inc. Toyota Corolla, Auris, Verso, Lexus CT, Scion tC, xB) 3. IMV (Toyota Hilux, Fortuna, Innova) 4. NBC2 (inc. Toyota Vitz/Yaris, Belta, Aqua) 5. D91B (Daihatsu Mira, Tanto, Toyota Pixis) 6. F2 (inc. Toyota Hilux, Land Cruiser Prado) 7. J (inc. Daihatsu Terios and Toyota Avanza) 8. EFC (Toyota Etios) 9. F1 (inc. Toyota Land Cruiser (200), Tundra, Lexus LX) 10. N (inc. Toyota Crown Royal, Crown Majesta, Lexus GS, LS) Component-sharing Volume planning
Production strategy Production strategy overview Manufacturing network JAPAN NORTH AMERICA CHINA EUROPE INDIA and SOUTH-EAST ASIA LATIN and SOUTH AMERICA SOUTH AFRICA AND AUSTRALIA Internal supply network Modularisation strategy Supplier parks Cluster of reference Strategies for manufacturing efficiency
Purchasing strategy Purchasing strategy overview Levels of vertical integration and outsourcing Purchasing organisation Purchasing offices Key purchasing personnel Purchasing budget
Supplier selection Supply base development Major and strategic suppliers Supplier selection criteria Working with Toyota
Global sourcing Policy and plans JAPAN NORTH AMERICA CHINA EUROPE
Pricing policy Cost reduction programmes and strategies Payment process and terms Raw material price management
Quality management Quality level Quality management systems Integration into product development Management of (suppliers and) sub-suppliers Supplier awards Technological positioning Areas of focus RandD spending RandD organisation Access to supplier technology Approach to alternative fuels, electrification and fuel cells Special vehicle development
Interview Introduction to the SuRe Index Methodology Executive summary Profit potential Organization Trust Pursuit of excellence Outlook
Forward Model Program
Major suppliers Toyota Highlander 2013 Toyota Tundra 2013 Toyota RAV4 2013 Toyota Lexus ES 2012 Toyota Corolla 2013