Toyota is boosting investments in personnel as a way of giving back to the people working at its suppliers and dealerships. What drove this decision?
More than just money
Investments in human resources and growth areas, including suppliers, are expanding to 830 billion yen. Concretely, what will this involve?
Masahiro Yamamoto, Chief Officer, Accounting Group
In pursuing “co-prosperity” with our suppliers, we set out a specific amount of financial support at the beginning of the year. However, it is not just about the numbers.
We have begun collaborative efforts to drive improvements in the genba. The details can be found on Toyota Times.
Examples include logistics improvements that resolve clashes between inbound and outbound shipments or using karakuri in tasks that require heavy lifting, making these jobs easier.
In another case, RAV4 brake pads were used to fix a piece of old equipment whose brakes had failed.
We are pursuing such efforts in the genba of not only Tier 1 suppliers but also those in Tier 2 and beyond. It is about more than just money.
We would be very grateful if you continued to follow such aspects as well.
Toyota cannot go it alone
How well are investments in human resources spreading across the entire supply chain? What challenges remain?
Hiroyuki Ueda, Chief Officer, External & Public Affairs Group
There is absolutely no sense in Toyota being the only company standing, which is why we want to make contributions that will boost the entire supply chain.
In particular, we are communicating closely with our direct suppliers to identify the individual issues and difficulties they are facing and provide support to meet their specific needs.
At the same time, the auto industry’s reach is extremely broad, with many different stakeholders, which makes it very difficult for Toyota to lift the entire industry through our efforts alone.
We are working with the Japan Automobile Manufacturers Association and the Japan Auto Parts Industries Association, which is assisting us in reaching suppliers in Tier 1, Tier 2, and beyond. Through such collaboration, we are creating a path to ensure that the efforts of the 5.5 million people across Japan’s auto industry contribute to producing happiness for all.
We must continue working towards this end indefinitely, which is why, despite the many challenges, we want to make this a sustainable, industry-wide effort.