Toyota’s purchasing strategy and supplier selection

Toyota has traditionally been very loyal to its suppliers, but its newest platforms are showing that the company is willing to look outside its traditional supplier base. But what process does Toyota got through in it’s supplier selection process?

The market downturn and Toyota’s unprecedented reversal of fortunes are taking a heavy toll on the automaker’s famed supplier group. Denso, Aisin Seiki and JTEKT all will report second-half losses when they close their books in March, while scores of other smaller suppliers, many depending on the automaker for more than half of their business, will experience a similar turnabout.