MBN USA

November 01, 2021

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Toyota joined BDR in 2005

“At Toyota, we understand the importance of recognizing and sharing best practices that position diverse entrepreneurs for economic sustainability. BDR gives us a forum to become engaged, active and intentional in expanding our diverse supplier base and reaching our goals.” — Robert Young, group vice president, purchasing supplier development

Q: When did your company begin its supplier diversity program?

A: 1987.

Q: Can you tell us a bit about your supplier diversity program history?

A: Our supplier diversity program was created the same year we began producing vehicles in Georgetown, Kentucky, way back in 1987. Toyota joined the Kentuckiana Minority Business Council as a regional member in 1988 — now known as TriState Minority Supplier Development Council — and then expanded to a national membership with [National Minority Supplier Development Council Inc.] in 1989. This [membership] allowed us to focus on creating and increasing relationships with diverse businesses. Over the years, we have expanded our partnerships to include [Women’s Business Enterprise National Council] in 2021, Disability: IN in 2018,  [National LGBT Chamber of Commerce] in 2018 and [National Veteran Business Development Council] in 2018.

At Toyota, our commitment to diversity is an integral part of our success, and we know that this commitment must continue to grow. Having a diverse supply base enables us to contribute to the economic well-being of all segments of the U.S. population. We recognize that partnering with suppliers who provide a diversity of ideas — in addition to delivering manufacturing support, goods and services — creates a significant competitive advantage for Toyota.

Diversity is a longstanding priority for Toyota, grounded in our core value of respect for people. If our company wants to continue building cars and trucks for the way our customers live, we need to reflect the diversity of our team members, dealer partners, customers and the communities we serve in our supply base.

This policy is approved by our president and CEO — Tetsuo “Ted” Ogawa — and every executive with procurement responsibility is held accountable for enforcement throughout the organization.

Q: Why did your company decide to become a BDR member?

A: In short, becoming a member of BDR aligned organically with our core values and mission. At Toyota, we understand the importance of recognizing and sharing best practices that position diverse entrepreneurs for economic sustainability. BDR gives us a forum to become engaged, active and intentional in expanding our diverse supplier base and reaching our goals.

Q: Besides having a $1 billion annual spend with diverse suppliers, what does it take to be a BDR company?

A: To be a BDR company, it takes a commitment to developing supplier- diversity processes that recognize the power of face-to-face networking and relationship-building. A key aspect of Toyota’s commitment to supplier diversity is ensuring that purchasing focuses on building strong, sustainable relationships with diverse businesses.

This [focus] shifts our perspective away from a traditional buyer/vendor relationship to what we term “going beyond the contract with our suppliers.” Providing business-boosting resources and events such as our Opportunity Exchange is a significant way we support that concept and energize our dedication to diverse supplier engagement.

Q: How has your company benefited from BDR membership?

A: In the past, when large companies sought vendor support, their options were limited to nearby businesses, referrals or flipping through a Rolodex and defaulting to a known supplier. Becoming a member of BDR has provided a way for us to grow our pool of diverse suppliers, while developing and understanding best practices/trends to sustain supplier diversity initiatives year after year.

Q: What are some best practices or lessons learned you can share with companies striving to reach the $1 billion diverse spend mark?

A: Establish an external supplier diversity steering committee/task force. Toyota has a distinguished panel of outside advisers called the Diversity Advisory Board, or DAB, who provide North American management with guidance and fresh ideas. DAB helps to both bring real-world insights on diversity and provide the kind of independent thinking important to the success of Toyota’s diversity strategy and BDR goal.

Mentorship! Toyota is involved in multiple mentorship programs — both those created by our partnering councils and ones that we have created ourselves. In Texas, Toyota leads Toyota Mentorship Program for Small and Diverse Businesses, which provides diverse companies with practical business management mentorship, ultimately, leading to growth. Applicants are matched with two Toyota executives who provide guidance and insight on navigating corporate culture and operations.

In southeast Michigan, Toyota — along with Adient PLC — created the Driving Impact Business Module. The Business Module is a two-year program designed for corporations to strengthen their diversity programs, while mentoring diverse companies for business growth and development. The fourth cycle of the program was kicked off at the end of 2020 and includes 10 corporations and nine diverse companies. Each curriculum is unique to the participant’s needs and focuses on two value propositions — corporate supplier diversity expansion and diverse-owned business advancement.

Q: What advice would you give to corporations that would like to become BDR members?

A: Focus on partnerships and identifying opportunities to grow your diverse spend. By achieving the billion-dollar mark and joining BDR, your company will be viewed as an organization that truly sees and understands the importance of a commitment to supplier diversity that is both tangible and transformational for diverse companies. You will make a real difference by enabling this growth, both within your company and with your diverse suppliers.

To learn more about Toyota’s supplier diversity program, visit onetoyotasupplierdiversity.com.