Supplier Seminar
Barbara McDaniel
Manager, External Affairs
Toyota Motor Engineering &
Manufacturing North America
October 2, 2007
Agenda

Barbara McDaniel – TEMA External Affairs
Welcome & Agenda
Toyota in North America & TMMMS

Jamie Todd – TEMA Purchasing
Purchasing Overview & Philosophies

Gene Tabor - TEMA Purchasing
Supplier Diversity

Keith Peel – TMMK/MS Purchasing
MS Commodities and Schedule

Q&A
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? uestions & Answers
Q
Write questions on index cards
Question collection after presentations
Break
Q&A Session
Toyota Manufacturing in North America
CAPTIN
1985
TMMC
1988
TMMC 2
2008
SIA
2007
TMMI
1999
NUMMI
1984
TMMK
1988
BODINE
1990
TABC
1971
BODINE
2005
TMMBC
2004
TMMMS
2010
TMMTX
2006
4
TEMA
1996
TMMAL
2003
TMMWV
1998
TMMMS
Blue Springs, MS
Highlander
Toyota Motor Manufacturing, Mississippi (TMMMS)

$1.3 billion investment

SOP by 2010

2,000 team members

Toyota Highlander

150,000 units/year
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Supplier Seminar
Jamie Todd
Assistant General Manager, Purchasing
Toyota Motor Engineering &
Manufacturing North America
October 2, 2007

Toyota Purchasing Overview

Core Purchasing Principles

Purchasing Priorities

Supply Base Expectations
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Toyota Purchasing Overview
Toyota Motor Corporation (TMC)
Purchasing
TEMA Purchasing
Plant Purchasing
(Erlanger, KY)
(Each Plant Site)
•Direct
•Plant
Parts & Materials
•Construction
Assets & Services
•Maintenance
& Equipment
•Logistics
•Repair
•Packaging
•Operating
•Service/Export/Trial
•Indirect
Parts
•Services
Parts
Services
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Supplies
Core Purchasing Principles
• Open Door Policy
• Mutual Benefit Based on Mutual Trust
• Contribution to local economies/
Good Corporate Citizenship
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Open Door Policy
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Mutual Benefit
Based on
Mutual Trust
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Mutual Benefit
Based on
Mutual Trust
Contribution to local economies,
Good Corporate citizenship
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Purchasing Priorities
•
•
•
Safety
Quality
Supply Base
• Capability
• Capacity
• Diversity
•
Cost
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Expectations of our Supply Base
Building Strong Supplier Relationships:
• Continuous Improvement
• Achievement of Established Goals
• Effective On-going Communication
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Thank You !
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Supplier Seminar
Gene Tabor
General Manager, Purchasing
Toyota Motor Engineering &
Manufacturing North America
October 2, 2007
SUPPLIER DIVERSITY
PROGRAM
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Supplier Diversity
Toyota is committed to having a supplier
base which more closely
reflects the diversity
of our customers and
of our North American
team members
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Supplier Diversity Targets
Toyota Minority Targets:
•
•
Tier I – 10%
Tier II – 5%
Toyota Mississippi Construction Minority Target:
•
15% of General Contractor Tier I Spend
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MBE Certification
A business that is at least 51% owned, managed
and controlled by one or more minority persons.
A minority person is defined as:
•
•
•
•
African-American
Hispanic-American
Native-American
Asian-American
Website – www.nmsdcus.org
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Please Register with Us
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Supplier Diversity - Contact Us!
TEMA Supplier Diversity is a Resource!!
TEMA Supplier Diversity Section
25 Atlantic Avenue, M/C PURSD-ER
Erlanger, KY 41018
Tel: 859-746-4481
Fax: 859-746-4449
E-mail: supplierdiversity@tema.toyota.com
www.toyotasupplier.com
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Making Contact
@
www.toyotasupplier.com
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Thank You !
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Supplier Seminar
Keith Peel
Manager, Purchasing
Toyota Motor Manufacturing Kentucky
October 2, 2007
Indirect / Plant Purchasing
•
Buying Responsibilities:
-
Plant-site services / trades
-
Machine spare parts
-
MRO tools / equipment
-
Low $ / Non-Production machinery & equipment
•
FY2007 North America Spend: ~$750m
•
Estimated TMMMS Annual Spend: $65m
•
# of Commodities Managed: ~60
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What Will We Buy?
6 main categories of procurement:
•
MRO Items
•
•
OEM Items
•
•
Example: Abrasives, Bearing, Hand Tools
Example: Robotics, Production Welding
Production Support
•
Example: Material Handling, Transportation
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What Will We Buy?
Categories of procurement (cont.):
•
Plant Support
•
•
Team Member Support
•
•
Example: Janitorial / Grounds, Waste
Recycling
Example: Child Care, Training, Recognition
Trades
•
Example: Electrical, Mechanical, Painting
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What Will Be Expected?
All suppliers are required to:
•
•
Achieve pre-defined performance
expectations in the areas of:
>Safety / Environmental
>Quality
>Delivery
>Cost
>Management
>Minority Development
Adhere to TMMMS Purchasing Terms and
Conditions.
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What Will Be Expected?
Safety / Environmental:
•
On-site Employees
•
•
Ensure that all employees are trained on TMMMS
safety policies prior to working on-site.
Products / Services
•
Ensure that all products delivered to TMMMS adhere
to company policies and government regulations.
•
Ensure that all services provided to TMMMS adhere
to company safety and environmental policies.
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What Will Be Expected?
Quality Expectation:
•
Performance Management:
•
Create, measure and report on key performance areas on a
regular basis.
•
Create, document and audit standardized work procedures
for all areas of service.
•
Quality of Product / Service:
•
Supplier should provide expert analysis, trouble shooting,
engineering, etc. on all products / services provided.
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What Will Be Expected?
Delivery Expectation:
•
Goods / services to be delivered:
•
On time (not before or after due date)
•
In quantity / condition required
•
Indirect parts / materials – According to due
date calculated using original quoted lead time.
•
Services / trades – According to schedule
established / agreed upon with end user.
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What Will Be Expected?
Cost Expectation:
•
•
Cost Control / Reduction:
•
Understand / negotiate all sub-supplier price change
requests.
•
Cost increases should be offset through internal cost
reduction.
Continuous Improvement:
•
Continually seek ways to add value to goods /
services provided.
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What Will Be Expected?
Management:
•
•
Administrative:
•
Ensure top-down support of TMMMS within supplier
organization.
•
Adhere to all TMMMS terms & conditions.
On-Site:
•
Ensure effective management of on-site employees.
•
Implement development / cross-training program for
on-site employees to minimize negative impact of
turnover.
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What Will Be Expected?
Minority Supplier Development:
•
Develop and implement a plan to support Toyota’s
goal of 5% Tier-2 minority supplier content.
•
Plan should focus on new, creative ideas to
achieve minority purchase goal without impact to
cost or quality.
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What Will Be Expected?
Terms & Conditions – Pricing:
•
•
Indirect Parts / Materials
•
Prices will be held for a period of one year.
•
Prices will be reviewed by Purchasing through Annual Price
Review.
Services / Trades
•
Quotations will be submitted on official TMMMS quote form.
•
Quotations will be broken down to show details of material,
labor, equipment, overhead, profit, etc.
•
Labor rates will be held for a period of one year and only
reviewed by Purchasing through Annual Price Review.
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What Will Be Expected?
Terms & Conditions – Payment Terms:
•
Standard Payment Terms: Net Prox. 25
•
Invoices submitted by 3rd working day for previous month.
•
Payments made on 25th of following month
Example:
Invoice
Date
Submit
Date
9/31/07 10/2/2007
•
Invoice Pay
Date
10/25/2007
Electronic Invoicing
•
Select commodities may be required to submit invoices through
the Toyota Electronic Invoice Payment and Presentment (EIPP)
System
•
XIGN Corporation is the supplier for EIPP.
•
EIPP allows suppliers to select from a list of pre-determined
payment terms to take advantage of faster disbursement, while
providing a payment discount.
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What Will Be Expected?
Terms & Conditions – Insurance Requirements:
•
•
Suppliers will be required to maintain insurance including,
but not limited to:
•
General Liability
•
Automotive Liability
•
Workers Compensation
Insurance limits will need to be prudent and appropriate
given the particular size and scope of work being
performed.
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Upcoming Activities
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Procurement / Sourcing Phases
I.
Initial / SOP
•
Timing: From construction through SOP.
•
Focus on start-up activities / SOP.
II.
Competition / Ramp-up
•
Timing: From SOP through SOP + 1 yr.
•
Focus on competition / cost control.
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Next Steps / Communication
If interested in being considered as a supplier:
Step 1: •Go to http://www.toyotasupplier.com
•Input company information as requested.
(See instruction sheet in packet)
Step 2: •Toyota Purchasing review information.
•Purchasing will request more info as needed.
Step 3: •Toyota Purchasing will visit supplier site as
necessary.
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Thank you!!!
Supplier Seminar
Q&A
Toyota Motor Engineering &
Manufacturing North America
October 2, 2007