Discourse on Business Relations (First Installment): Exploring Collaborative Business Entities

Toyota, one of the world's leading automobile manufacturers, has launched an innovative training program aimed at fostering better understanding between employees and suppliers, as well as dealers. This initiative is rooted in the philosophy of genchi genbutsu, a principle that emphasises the importance of going to the source to gather facts and make informed decisions.

In a bid to bridge the gap between Toyota and its partners, 86 employees from the Japan Sales Business Group have been seconded to dealers across the country since January this year. This move is part of Toyota's ongoing efforts to understand the challenges faced by its suppliers and dealers, and to build strong relationships with its customers.

The discussions, based on mutual trust and a shared foundation, focus on the happiness of employees and the development of the company. Every spring, Toyota management and employee representatives gather to discuss company-wide workplace and management issues, looking back on the past year and planning for the future.

However, the road to improvement is not without its hurdles. Some dealers have expressed difficulties in contacting specific individuals within Toyota, while others have noted that inquiries are often limited to pre-selected topics. Moreover, maintenance workers are struggling due to the pandemic, with requests for fast car inspections and immediate repairs piling up.

Suppliers, too, face challenges that they may not be able to discuss openly due to fear of losing work from Toyota. This silence can hinder the process of identifying and addressing issues within the industry.

Recognising these challenges, Toyota management is aware of the need to change the way they work to support dealers more effectively. Operating Officer Jun Nagata believes that unless sales activities are optimised for each region or store, Toyota will lose its competitiveness.

In an effort to promote transparency, highlights of the discussions are shared through Toyota Times, a company publication. Moreover, Toyota has provided necessary equipment such as face shields and partitions for dealers to ensure the safety of both employees and customers.

Akio Toyoda, President of Toyota, has presented a major theme for this year's discussions: becoming a presence that invites gratitude from colleagues in the automobile industry. This goal is echoed by Mitsuru Kawai, Executive Fellow at Toyota, who emphasises the importance of firsthand experience in understanding suppliers' problems and learning about their warm, homely atmosphere.

The automobile industry in Japan, with over 70,000 employees at Toyota and 5.5 million people involved in total, is working together to recover from the COVID-19 crisis and realise a carbon-neutral society. As a leading player in the industry, Toyota is in a position to lead these efforts and address the challenges faced by its partners.

The discussions have also highlighted the need to discuss what more can be done to support maintenance workers and make their work easier and more efficient. Team members have shared their experiences at suppliers' worksites, revealing that Toyota may take for granted that its practices are industry-standard, which is not always the case.

The names of the companies to which Toyota employees were seconded for exploring and improving production sites include GM (General Motors) and Ford. This cross-industry collaboration is a testament to Toyota's commitment to learning from others and driving change within the automotive industry.

In conclusion, Toyota's efforts to understand suppliers and dealers who support the automobile manufacturing and build relationships with customers have only just begun. As the industry continues to evolve, Toyota remains dedicated to fostering a collaborative and transparent environment that benefits everyone involved.

Discourse on Business Relations (First Installment): Exploring Collaborative Business Entities