GETTING TO WIN WIN

HOW TOYOTA CREATES AND SUSTAINS BEST

PRACTICE SUPPLIER RELATIONSHIP
 TOYOTA
AN EXAMPLE FOR

ORIGINAL EQUIPMENT MANUFACTURERs

• Performance Improvement
• Unshakably Loyal
• Extended Network
• Financial Results
 TOYOTA’S DISTINCTIVE
RELATIONSHIP
Allows Suppliers For:
• Acceptable Returns
• Reliable For Agreements
• Support Suppliers
• Equitable Cost Reductions

Valuable Lessons:
• Supplier Selection
• Supplier Collaboration
• Supplier Development
 TOYOTA’S DISTINCTIVE
Principles: RELATIONSHIP
Treat All Suppliers New Product
Fairly. Development
Long Term Suppliers Development
Partnerships.
 Supplier Selection: Toward
Long Term Partnership
• Cost, Quality & Technology
• Long Term Partnerships
• Stringent Selection Criteria
• Hard Selection Process
• Less Hurdles during production
JAWAD ALI KHAN
 Cross Functional Teams

• Purchasing
• Engineering
• Manufacturing
• Management
 5 Key Elements of Toyota
• Kaizen
• Consistent Reasoning
• Cross Functional Teaming
• Sharing of Information and Knowledge
• Responsiveness
5 Key Elements of Toyota
 Supplier Collaboration: Toward
Flawless Design
• Solicits & Exploits Supplier’s Experience
• High Level Product Specs
• Impact of Purposed Changes
• High Control of Design
• Control of Suppliers
• Control of NPD Process
 Supplier Development: Toward
World Class Performance
• Monitor Suppliers Performances
• Quality Audits Every Six Months
• Rapid Resolution of Problems
• Promoting Knowledge Sharing Networks
 Treating Suppliers Fairly

• Prices Justification
• Unreasonable Cost Estimates
• Low Prices of Suppliers
• Helping Suppliers From Crises
 Adopting Toyota’s Supplier
Relationship Principles

Corporate Philosophy of treating all stakeholders

fairly