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Supplier Standards

We at Toyota rely on outside suppliers for most of the parts and materials in the vehicles we make. Every step in making Toyotas, from development to production, consists of joint work with suppliers. The suppliers we seek are companies that have the will and the ability to become active partners with us. We are looking for suppliers who possess world-class competitiveness in terms of quality, cost, delivery, and technological capabilities.


QUALITY
Quality is essential to customer satisfaction. Defective products lead to complaints and even recalls. We count on suppliers to pursue quality levels well above our minimum standards.

Preventing defects - our standard practice is to trust suppliers to provide us with defect-free products. We do not ordinarily inspect the parts and materials that we source.

Built-in quality -
the best way to assure quality is to build quality into products systematically. That means designing products and processes to maximize quality.


COST
Offering high quality and excellent function at low prices increases product appeal. The conservation of material and energy that stem from cost-saving measures helps safeguard the environment.

Low prices through low costs - we welcome low prices from suppliers only when we can see that they are the result of genuine cost competitiveness.

Unceasing effort on behalf of cost savings - suppliers need to strive to continuously reduce costs and to translate their reductions into lower prices.


DELIVERY
Providing customers with the products they want when they want them also is an important element of customer satisfaction.

Reliable delivery - at the very least, suppliers must deliver products on schedule and in the amounts required.

Flexibility in production and delivery - customer tastes change constantly. Suppliers need to be able to respond flexibly in production and delivery


TECHNOLOGICAL CAPABILITIES
Competitive technology is something to pursue through continuing advances in product development and in production engineering.

Value-ad and sophistication - a big consideration in evaluating suppliers' technological capabilities the ability to offer products that are a step ahead of the competition.

Speed - the ability to translate concepts into products quickly is another important aspect.

Dramatic cost reductions - suppliers should foster the ability to broaden the marketability of their products through dramatic reductions in cost.


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More Information:

Basic Principles of Purchasing in North America

Helping Suppliers Compete

The Products We Need

How to Become a Toyota Supplier