Toyota’s candid approach to purchasing ‘key’ to future leadership

The process of procuring goods is complex, and involves astute decision-making from both sides of the table to reach a supply agreement, ultimately boiling down to cost. Whereas the purchasing power of a large supermarket chain may in many cases weigh heavily against its suppliers, for the automotive industry there is little benefit in beating down the companies that typically supply more than 60% of the end product.

As Toyota’s Jean-Christophe Deville tells Automotive World, purchasing in the automotive industry is a collaborative effort as opposed to a tug of war.