TEMA Newsletter 2015/Issue 1

2015 / Issue 1Not an option. We consider it a standard. Diversity20

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TOYOTA SUPPLIER DIVERSITY / MARCH 2015

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From The Editor

Executive Message: Jamie Todd

Supplier Diversity – More Than A Job: Gene Tabor

Supplier Spotlight: Linda Cleveland, Industry Products Co.

Supplier Diversity: A Compelling Value Proposition

2015 ABM Supplier Diversity Award Winners

Meet The Team

Upcoming Events

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DiversityNot an option. We consider it a standard.

Issue 1

TA B L E O F C O N T E N T S

Published by:Toyota Motor Engineering &

Manufacturing North America, Inc. (TEMA)www.toyotasupplier.com

© Copyright 2015by Toyota Motor Engineering & Manufacturing

North America, Inc. (TEMA). All pieces reproduced in this issue are under prior

copyright of the creators and publisher by the contractual arrangements. Nothing shown may

be reproduced in any form without obtaining the permission of TEMA and any other person or

company who may have copyright ownership.


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Greetings,

Driven by a passion for diversity - from both a supplier and corporate viewpoint - I am both honored and excited to return as Manager of Supplier Diversity.

Resuming a role I previously held at Toyota (from 1997-2000) reminds me of riding a bicycle after a long hiatus. While perhaps initially forgetting exactly how to hit the brakes or sound the horn, the instinctive skills of maintaining balance and shifting gears always seems to endure. Yet this time, the bicycle I’m riding is much more complex thanks to the steady evolution and growth of Supplier Diversity.

One of my team’s primary goals is to continue fostering strong connections between our buying team and all areas of our company, so that we identify as many potential supplier opportunities for MBEs and WBEs as possible. I also look forward to increasing our team’s relationships with NMSDC and WBENC councils across the country.

Speaking of WBEs, in honor of March being National Women’s History Month, this edition of our newsletter highlights the dynamic impact of women-owned businesses. We applaud and appreciate our WBE suppliers and women in leadership at Toyota — all of whom are making positive contributions in the workplace as well as in their respective communities.

In keeping with Toyota’s commitment to supplier diversity, I’m pleased to announce the dates for the 2015 Toyota Opportunity Exchange. This year’s event with take place on November 9th and 10th in Cincinnati, Ohio so please save these dates and join us.

On behalf of Toyota Supplier Diversity, I wish you a productive and prosperous 2015, and I look forward to furthering our partnership with you.

Best regards,

Chuck

CHUCK HENDRIXSUPPLIER DIVERSITY MANAGER,

TEMA

F R O M T H E E D I T O R


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Throughout my 20 years with Toyota, I have been honored to work with WBEs in numerous capacities. In some cases, it has been through WBEs directly supplying parts, materials and services for our NAMCs. In many other instances, the relationships have been built through Toyota’s supplier development processes, supporting WBEs with new business models and strategies to more efficiently meet our business needs. The passion WBEs demonstrate for the products and services they provide has always been inspiring and will continue to be critical to Toyota’s success.

In 2013, Toyota quantified the company’s purchasing activity with woman-owned businesses by identifying a 2% WBE spend target. This initiative plays two key roles for Toyota:

First, we’ve established a company-wide goal to develop strategies and methods to engage more WBEs and create new opportunities to utilize the capabilities that WBEs can bring to our business.

Second, formalizing our commitment shows Toyota’s support of WBEs and represents our goal of developing a supply base that more closely reflects our customers, as well as the thousands of employees who design, build and sell Toyota vehicles in North America. While this certainly benefits Toyota, we hope that ultimately it inspires others both inside and outside our industry to do the same.

The power and influence of women as consumers and business owners remains remarkable. Toyota proudly recognizes the business case for focusing on the development and engagement of women as purchasers, team members and strategic business partners - not just because it’s the right thing to do, but because it makes business sense for our ever-evolving company.

We applaud our team members, suppliers, and partners as Toyota proudly celebrates Women’s History Month and International Women’s Day.

JAMIE TODDGENERAL MANAGER,

POWERTRAIN,CHASSIS & PROTOTYPE

E X E C U T I V E M E S S A G E


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The past 28 years have been an amazing opportunity. I have truly learned so much by working with many of you. Supplier Diversity is a part of my job responsibility that grew beyond a job; it became a passion. It became a passion because of colleagues, thought leaders, and pioneers that were willing to help me to see and to understand.

Supplier Diversity is a business issue, but it is also about people having the opportunity to grow, to develop and to enjoy the results of a level playing field. Supplier Diversity is about giving back to the community in which we live, work and enjoy our lives.

The request I have to those reading this is that we need to persevere. Opportunities may not always present themselves. Relationships may be challenging to grow and results may be slower in maturing than planned. We must persevere, support, and encourage each other and continue to keep our focus on the final vision.

It is time for me to turn to a new chapter in my life. I will be retiring effective May 1st. I have been blessed to be a part of a great team.

Thank you all for your support over the years. I am confident in Toyota’s continued commitment to Supplier Diversity. May you all have continued success.

Best Regards,

Gene

GENE TABORGENERAL MANAGER

PURCHASING PROCUREMENT DEPARTMENT 4

S U P P L I E R D I V E R S I T Y : M O R E T H A N A J O B


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COMPANY PROFILE:Who:

Linda Cleveland

Company:

Industry Products Company

Core Capabilities: High-quality tooling; cargo and trunk

systems; acoustic and water shield solutions; protective in-transit materials.

Headquarters: Piqua, Ohio (a suburb of Dayton)

Certification(s): WBE-; active with the Ohio River Valley Women Business Council

Supplier Relationship with Toyota:

Tier I and Tier II

Q: HOW DID IPC GET STARTED; WHAT BUSINESS NEED WERE YOU ADDRESSING?

A: My mother and father started the business in 1966. My father, a former CPA, really wanted to have his own company. We started by cutting gaskets for Copeland Corporation (now part of Emerson Climate Technologies), which entailed an intricate process in a very niche market. IPC then diversified into other appliance and compressor-type organizations and grew from there.

FIVEQUESTIONSWITH…

LINDACLEVELANDPRESIDENT, INDUSTRY PRODUCTS COMPANY

Linda Cleveland is president and co-owner of Industry Products Company (IPC), a company founded by her parents nearly 50 years ago. A Tier I Supplier with Toyota since 1986, IPC is still a family-operated company, owned by Ms. Cleveland and her two sisters, Debbie Hernandez and Jillayne Kirk, who are continuing IPC’s legacy of excellence since assuming company leadership in 2000.

S U P P L I E R S P O T L I G H T


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We have that ‘started in a garage’ story – my mother oversaw the books, dad in charge of sales and they had another partner in manufacturing. Even my sisters and I were involved by being in charge of picking the slugs and ties.

After my father passed away in 1981, my husband ran the company, while I served as the HR manager for a number of years. In 2000, my husband decided to go in a different direction career-wise, whereby I went to my family and asked them to give me a year at the helm and let’s see how it goes. That was 15 years ago, and I’m still here!

Q: HOW WAS IPC INTRODUCED TO TOYOTA AND WHAT’S HAPPENED SINCE?

A: We began working with Toyota on a Tier I basis in 1986 with Toyota’s plant in Georgetown, Kentucky. In the second year of Camry’s Kentucky production, we received an opportunity to supply tire covers and door hole shields. We’ve been partnering with Toyota ever since.

Q: WHO ARE YOUR MENTORS AND WHO / WHAT INSPIRES YOU?

A: Through the years, I’ve been lucky to find people who’ve been helpful in every stage of our business. When I became president of IPC, I remember thinking, “Well, I may not know a lot about this but I do know the only way I’m going to learn is by asking a lot of questions.” And that’s what I’ve done – seek out mentors (there are way too many to list!) and others with experience I admire to really listen and learn from them.

My inspiration is our team members at Industry Products. The teacher in me feels a great sense of responsibility for all of the people who work with us. Their enthusiasm and vested interest in the company motivates me every day. I want everyone who works at IPC – no matter their role or how long they’ve worked with us – to know how important they are to our success; that they are a part of our family at IPC. Maintaining the family-owned culture keeps me going.

Q: WHAT ACCOMPLISHMENTS IN BUSINESS AND IN YOUR COMMUNITY MAKE YOU MOST PROUD?

A: Being recognized as the largest employer in the Piqua area (IPC employs ~400 people) has been a great achievement. We’ve grown to three plants – expanding into Mexico and Alabama, which makes me proud to see an idea in my dad’s head truly come to life.

I’m also proud that IPC was able to successfully satisfy Toyota’s needs during the economic downturn in 2009. Our goal is to always meet the needs of our customers, even in a pinch; we were able to do that. And during that downturn, our business actually picked up and was a big growth spurt for us.

And I am incredibly proud that since 1989, our employees have raised thousands of dollars to help local families throughout the holidays. It’s particularly gratifying because our team members are doing these things voluntarily, independently coming up with ideas, organizing activities and being active in our community.

Q: WHAT’S NEXT FOR INDUSTRY PRODUCTS COMPANY?

A: We foresee continuing the type of growth we’ve experienced over the past few decades. Since 1996, we’ve been able to steadily evolve, and we are dedicated to maintaining that momentum.

I also look forward to our continued participation with the Ohio River Valley Chapter of WBENC (ORV-WBC). We’ve been WBE-certified since 2006 and value the networking and business development opportunities ORV-WBC provides.

Interestingly, Gene Tabor and I had been discussing the business case for partnering with women entrepreneurs for a number of years. Learning of Toyota’s formalized commitment to WBEs prompted us to expand our company’s involvement with ORV-WBC in an effort to build relationships with more WBEs ourselves.


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In our increasingly global economy, the traditional definitions of “majority” and “minority” are changing dramatically. These changes — both domestic and abroad — challenge all businesses to reconsider how they interact with each other and their customers. As the approach to increasing diversity in business has evolved to a more enlightened and broader perspective about inclusion, companies in all industries are recognizing that diversity brings value beyond any “social” policy statement. Companies that have implemented comprehensive diversity strategies are benefitting from new opportunities to attract top talent, making more meaningful connections with customers and also strengthening business partnerships. One of the most effective ways to put a more inclusive mindset into action is through Supplier Diversity Purchasing processes that increase engagement with diverse suppliers.

A STRONG BUSINESS CASEAs a result of demographic changes, the economic power of minorities and women — both as consumers and as business owners — will continue to grow. This trend encourages companies to adjust their strategies for succeeding in a marketplace which continues to become more diverse.

SUPPLIER DIVERSITY:

A COMPELLING VALUE PROPOSITION

F E AT U R E A R T I C L E

Specifically, purposefully engaging more minority-owned businesses (MBEs) and women-owned businesses (WBEs) through Supplier Diversity processes drives larger, and often less diverse, companies to diversify their portfolio of suppliers. This helps ensure those working with and for the larger companies are reflective of the diversity in their markets, their workforce and in the communities where they do business. When companies focus on cultivating strong, sustainable business relationships with diverse business owners, they also increase their access to innovation, cost efficiencies and new perspectives for addressing challenges.

Establishing partnerships with MBEs and WBES can also make a company become more competitive. Potential customers often view companies with strong diversity values as more favorable—an attractive selling point which can offer businesses a market advantage. Additionally, recent data indicates that consumer brand loyalty is strongly driven by a company’s practices and “how they do business” as much as traditional decision-making factors, such as quality, cost and convenience.

WOMEN: KEY PURCHASE MAKERS AND DYNAMIC BUSINESS OWNERS The expanding contributions of women as, purchasing decision-makers, and as business owners are definitely gaining the attention of companies across the country. For example, in today’s automotive market, women buy more than half of the new cars sold in the United States — a statistic that is certainly of interest to Toyota!

According to MRI’s Survey of the American Consumer (Fall 2011),74.9% of women identified themselves as the primary shoppers for their households. In that same year, women in the U.S. reported “controlling” 72.8% of household spending — which translates to approximately $12 trillion of the overall $18.4 trillion in global consumer spending(Boston Consulting Group).

The impressive growth of WBEs is also impacting the market. For example:

This impressive economic and cultural impact played a significant role in Toyota formalizing the inclusion of women-owned businesses in our supplier base and now we are creating more opportunities for WBEs to engage with Toyota and our Tier I Suppliers.

4.2%

WOMEN-OWNEDFIRMS HAVE REVENUES OF$1 MILLION OR MORE.

1 IN 5 COMPANIESWITH REVENUE OF

$1 MILLION OR MORE ISWOMAN-OWNED.

AS OF 2014

WOMEN OWN MORE THAN9.1 MILLION COMPANIES

2.9 MILLIONOF THOSE ARE MAJORITY-OWNED

BY WOMEN OF COLORIN THE U.S., EMPLOYING

1.4 MILLION PEOPLEAND GENERATING$226 BILLION

IN REVENUES ANNUALLY.

WOMEN BUY MORE THAN HALF OF THE NEW CARS IN THE

U.S., AND INFLUENCE UP TO 80% OF ALL CAR PURCHASES.

80%


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MINORITY MARKET SHARE AND ENTREPRENEURSHIP ON THE RISE Business ownership and the purchasing power of minorities are trending upward in the global market. Additionally, minority consumers make a big impact on the new vehicle market through overall increases in brand share as well as through brand loyalty.

For example:

Minority consumers also have a large impact on the new vehicle market in terms of minority share of brand and brand loyalty. For example, the automotive industry has experienced an 11% increase in consumer purchases among minority consumers, further contributing to the expanding growth rates of the minority consumer group.

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TOYOTA SUPPLIER DIVERSITY & YOUToyota and our Tier I Suppliers continue to build strong, sustainable relationships with more diverse businesses in communities across North America. This not only supports our “buy where we build” Purchasing Philosophy, but also aligns with Toyota’s expectation for suppliers to diversify their own supply chain.

Ultimately, Supplier Diversity is creating a more inclusive business environment at Toyota, allowing our company greater flexibility to adapt to changing market conditions and generating innovative advances that result in better vehicles for our customers. For diverse companies interesting in pursuing procurement opportunities with Toyota, we encourage you to visit www.toyotasupplier.com for information. Another important step you can take is to ensure your business certifications remain up-to-date.

We also encourage Tier I Suppliers to remain mindful of Toyota’s targets when selecting vendors and making purchasing decisions. TEMA Supplier Diversity is available to assist you with recommendations for how you can increase relationships with MBEs and WBEs in your community.

A key way we facilitate introductions between our Tier I Suppliers, MBEs and WBEs is during the Toyota Opportunity Exchange — our annual supplier development and networking conference. Make plans to attend the 2015 Opportunity Exchange November 9th and 10th in Cincinnati, Ohio. Toyota is proud to be a leader in advancing diversity and inclusion in North America. However, we realize that much work remains in bridging gaps between corporations and diverse business owners. We look forward to working together in creating a more equitable and inclusive business culture. Sources:1. www.catalyst.org2. GfK MRI, Survey of the American Consumer (2011).3. Michael J. Silverstein and Kate Sayre, Women Want More: How to Capture Your Share of the World’s Largest, Fastest-Growing Market (HarperBusiness, September 2009).4. Boston Consulting Group press release5. http://www.census.gov/econ/sbo/6. Women-Drivers.com, 2010 (via M2W.biz)

AUTOMOTIVE INDUSTRYHAS EXPERIENCEDAN 11% INCREASE

IN MINORITYCONSUMER PURCHASES.

FROM 1990 TO 2010

ASIAN AMERICAN’S BUYING POWER HAS INCREASED FROM

$115.4 BILLION TO $609.2 BILLION

IN 2017

PURCHASING POWEROF AFRICAN AMERICANS

IS PROJECTED TO CLIMB TO$1.3 TRILLION

IN 2017

LATINAS/LATINO’S BUYING POWER IS EXPECTED TO GROW TO

$1.7 TRILLION

In 2010, NATIVE AMERICANS’ SHARE OF THE CONSUMER MARKET WAS 0.8%. THE PERCENTAGE

CHANGE IN NATIVE AMERICANS’ BUYING POWER BETWEEN 1990 AND 2017 IS 653.6%,

HIGHER THAN THE PERCENTAGE CHANGE FOR MOST OTHER RACIAL/ETHNIC GROUPS.

BETWEEN 2002 AND 2007

THE NUMBER OF MINORITY-OWNED BUSINESSES INCREASED BY

45.6 PERCENT TO 5.8 MILLION


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Toyota proudly congratulates Continental, Gentex, JCI, and Tenneco for their exceptional performance in Supplier Diversity.

Recently awarded special recognition awards at TEMA Purchasing’s Annual Business Meeting, these Tier I Suppliers have continued to provide outstanding products and services, while remaining committed to Toyota supplier standards.

CONTINENTAL AUTOMOTIVE SYSTEMSSupplier Diversity Special Recognition:Diversity Improvement Award

In Photo (LtoR): Noby Tanaka, Michael Harris, Scott Brooks, Simon Nagata, Robert Young

GENTEXSupplier Diversity Special Recognition:Diversity Improvement Award

In Photo (LtoR): Noby Tanaka, Tom Latsko, Joe Matthews, Simon Nagata, Robert Young

JOHNSON CONTROLSSupplier Diversity Special Recognition:Diversity Development Award

In Photo (LtoR): Noby Tanaka, Daniel Yamamoto, Sherry Diccion, Simon Nagata, Robert Young

TENNECOSupplier Diversity Special Recognition:Diversity Development Award

In Photo (LtoR): Noby Tanaka, Anthony Boden, Fernando Ronderos, Mark Sanders, Simon Nagata, Robert Young

A B M H O N O R E E S


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CHUCK HENDRIX | MANAGERMr. Hendrix was appointed TEMA Supplier Diversity Manager in January 2015. He is responsible for building TEMA’s supplier diversity processes, including the sourcing and development of M/WBEs. He previously held this position from 1997-2000.

Throughout Mr. Hendrix’s 18 years with Toyota, he has held positions within TEMA Purchasing, including Project Management, Systems and Strategy, as well as Direct Procurement. Outside of Purchasing, he also served as Corporate Diversity Manager

where he was responsible for advancing TEMA’s overall diversity initiatives. Mr. Hendrix is a graduate of Idaho State University where he earned his degree in Management and Organization. He and his wife, Melissa, have 5 sons.

MATT GREENE | ASSISTANT MANAGERMr. Greene serves as TEMA’s Purchasing Supplier Diversity Assistant Manager and is responsible for leading the group’s strategy development relationship building efforts to ensure the continuous development of MBEs and WBEs within Toyota’s supply base.

As project manager for the Toyota Opportunity Exchange—the company’s annual supplier diversity development and networking conference—he oversees activities of internal and external working groups involved with planning and presenting the event. Mr. Greene has

worked with Toyota since 2002, with most of his experience in project management and buying roles with TEMA Purchasing.

STEPHANIE BURTON | SPECIALIST

Mrs. Burton has been with TEMA since 1996. Currently, she is in the Supplier Diversity group where her responsibilities include Opportunity Exchange, Tier II tracking & diversity spends as well as acting as a liaison between Toyota groups and M/WBEs. She manages TEMA Supplier Diversity activities for NMSDC and WBENC Northern Regions as well as CAMSC. A graduate of Xavier University, Mrs. Burton has previously held roles within TEMA Purchasing for Procurement, Project Management and Purchasing Systems.

JEANA HARRIS-QUIROZ | ASSOCIATEMs. Harris-Quiroz joined the TEMA Supplier Diversity team in 2014 and is responsible for executing the team’s sponsored events as well as coordinating executive management participation in trade shows, seminars, and conferences. She previously supported TEMA’s Indirect Purchasing team at TMMK.

M E E T T H E T E A M

Our very special thanks to Melinda Durstock for her commitment, dedication and service to TEMA Supplier Diversity these past several years. We wish her all the best in her new role on Toyota’s Production Control department.


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APRIL

MAY

JUNE

April 8 & 9, Indianapolis, IN | Mid-States MSDC Business Opportunity FairApril 9 &10, New Orleans, LA | WBEC-South Business Opportunity FairApril 14, Irving, TX | WBC-Southwest Business ForumApril 14 & 15, Toronto, ON | CAMSC Diversity Procurement FairApril 16, Nashville, TN | Tri-State MSDC Impact Awards April 20 & 21, Mason, OH | ORV-WBC Catch the WaveApril 23, Novi, MI | WBEC-GL / CEED Annual Awards Celebration

May 5-7, Detroit, Michigan | MMSDC Annual Procurement ConferenceMay 11-13, Dayton, Ohio | OMSDC Business Opportunity FairMay 20, New York, NY | NMSDC Leadership AwardsMay 27 & 28, Houston, TX | WBEA Business Opportunity Fair

June 10 & 11, San Antonio, TX | SMSDC Premier Face Time Expo & Awards CeremonyJune 12, Dearborn, Michigan | MHCC 5th Annual MatchmakerJune 12, San Antonio, TX | SMSDC Networking EventJune 15, Ann Arbor, MI | MMSDC Networking EventJune 18, Nashville, TN | Tri-State MSDC Networking EventJune 19, St. Louis, MO | Mid-States MSDC Networking Event

SAVE THE DATE

26th ANNUAL OPPORTUNITY EXCHANGENovember 9 & 10, 2015 | Cincinnati, Ohio

› ToyotaOpportunityExchange.com› ToyotaSupplier.com

Get social!

C A L E N D A R O F E V E N T S

Certified MBE and WBE companies are invited to find out more about becoming a Toyota supplier by visiting toyotasupplier.com.

SAVE THE DATE: Toyota’s 26th Annual Opportunity ExchangeNovember 9 & 10, 2015 I Cincinnati, Ohio - toyotaopportunityexchange.com

#ToyotaSD | toyotasupplier.com |

2015

Not an option. We consider it a standard.

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