Opportunity Reinvented. Toyota Newsletter Q1

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OPPORTUNITY REINVENTED.

Q1

DIVERSITY

When the game changes, you can’t play by the same rules.

Meet TEMA’s Supplier Diversity Team page 6 Awards & Highlights page 10 An Insider’s Perspective on Opportunity Exchange page 12

NMSDC

2011 Corporation of the Year

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Table of Contents

4

8

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Toyota’s Corporate

Toyota Launches Focus

An Insider’s Perspective

Commitment to Supplier

on Women-Owned

on Opportunity Exchange

Diversity

Businesses in Supplier Base

NMSDC

2011 Corporation of the Year

10 Awards & Highlights

6

The 2012 Toyota Opportunity Exchange is scheduled for Tuesday November 13. Watch for registration details and program updates in the coming months.

Meet TEMA’s Supplier Diversity Team

Cover:

2012 Camry

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Turning the calendar over to a new year

This issue also includes an insider’s

always fills me with the greatest sense of

perspective and “behind the scenes” look

optimism. I hope 2012 is off to a strong

at Toyota’s Opportunity Exchange. Be sure

beginning for you.

to look for yourself and people you know in the pictures from the 2011 Opportunity

Toyota approaches supplier diversity as a

Exchange.

strategic element of our business strategy and we are committed to supporting your

It is an honor to be recognized for our

business sustainability. This edition of

excellence in supplier diversity processes

our supplier diversity newsletter features

and results. In 2011, Toyota received

articles about our corporate dedication

accolades from several regional NMSDC

to diversity and why diverse supplier

councils and our year ended on a

development is a priority for Toyota,

high note by being named NMSDC’s

featuring insight from several of our

Corporation of the Year. We are proud of

top executives. Also in this issue, we

our company’s leadership in creating a

introduce our new Supplier Relations

diverse and inclusive corporate culture

General Manager, Jim Holloway, as well

and remain dedicated to continually

as the team responsible for supporting

expanding and developing a strong

supplier diversity activities for Toyota

diverse supplier base in North America.

Motor Engineering & Manufacturing North America, Inc. (TEMA).

We accomplished much together in 2011 and Toyota joins our diverse suppliers

I am very excited to let you know about

in looking forward to continued success

Toyota’s new initiative to engage more

this year and beyond. Thanks for your

Women Business Enterprises (WBEs) in

continued commitment to excellence!

our supplier base. You can learn about the background and objectives of this important enhancement to our supplier diversity processes on page 8 of this newsletter.

Adrienne C. Trimble Manager, Supplier Diversity - Purchasing Toyota Motor Engineering & Manufacturing North America, Inc.

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Toyota’s Corporate Commitment to Supplier Diversity

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Just over a decade ago, Toyota developed

diversity of our employees who design, build

a 21st Century Diversity Strategy to support

and sell Toyota vehicles in North America.

our company’s aspiration of having world-

Having a diverse supplier base enables us

class diversity and inclusion practices. This

to contribute to the economic well-being of

over-arching corporate strategy helps

all segments of the U.S. population. Also,

ensure diversity remains a top priority in

we recognize that partnering with suppliers

our activities and our communications

who provide a diversity of ideas—in addition

throughout every division of Toyota. Our

to delivering manufacturing support,

commitment to diversity and inclusion

goods, and services—creates a significant

resonates from senior executives to those

competitive advantage for Toyota.

making daily procurement decisions, and remains the same from the boardroom to the production floor and show room.

We appreciate our suppliers for remaining committed to Toyota, upholding our standards of excellence and making

Toyota’s approach to supplier diversity is integrated into our corporate DNA.

significant contributions to our company’s success.

Specifically, Toyota is committed to having a supplier base which more closely reflects the diversity of our customers and the

“Supplier Diversity is part of a broader corporate strategy and has the support and commitment of our executive leadership at the highest levels. It is a business strategy driven across the entire organization and is reflective of our corporate commitment to diversity and inclusion.”

– Kazuhiro Miyauchi Executive Vice President, Purchasing Toyota Motor Engineering & Manufacturing North America, Inc.

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NMSDC

2011 Corporation of the Year

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“Toyota’s formal Tier II program promotes Supplier Diversity beyond our direct supply base by encouraging Tier I suppliers to achieve specific Tier II spend goals. We set goals that encourage our Tier I suppliers to diversify their own supply bases, further extending our impact on minority businesses across North America.”

– Robert Young Vice President, Purchasing Toyota Motor Engineering & Manufacturing North America, Inc.

“ Because Toyota integrates supplier diversity processes throughout our company, we can more readily identify opportunities for engaging diverse suppliers on a divisional level. This “insideout” approach is specifically allowing us to broaden our base of suppliers in non-manufacturing and professional service areas.”

– Jim Holloway General Manager, Supplier Relations Toyota Motor Engineering & Manufacturing North America, Inc.

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Meet TEMA’s Supplier Diversity Team As you work with Toyota as an existing

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issues and manages processes which identify

or prospective supplier, you will certainly

opportunities for minority-and women-

encounter members of TEMA’s Supplier

owned businesses (M/WBE) suppliers in all

Diversity team. Part of the company’s

divisions of the company.

Purchasing division and based in Erlanger, Kentucky, these dedicated professionals are

A key aspect of Toyota’s commitment to

responsible for leading Toyota on the right

M/WBE suppliers is fostering long-term

track toward world class diversity standards.

relationships. To support this objective, Toyota’s SD team oversees programs, events

The SD team manages internal and

and initiatives that promote excellence

external processes and initiatives that

and sustainability for diverse suppliers.

directly support the advancement of

For example, you may have attended our

diversity and inclusion throughout Toyota’s

flagship event, Toyota’s annual Opportunity

supplier base. These activities ensure

Exchange, where prospective M/WBEs

Toyota suppliers are more reflective of

network with Tier I suppliers.

the diversity of the employees, customers and the communities in which Toyota has a presence. In addition, Toyota’s SD team educates employees about supplier diversity

Adrienne Trimble Manager Ms. Trimble has overseen processes that support diversity within TEMA’s supplier base since being assigned as Manager, Supplier Diversity, in 2005. In her role, she is responsible for creating and implementing effective strategies to increase levels of diversity within the company’s supplier base. Ms. Trimble’s team manages programs and initiatives that facilitate relationships between Toyota’s Tier I and Tier II suppliers and minority-and women-owned businesses (M/WBEs) as well as capacity and professional development.

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John Munson, Jr. Assistant Manager Since being named Assistant Manager in 2006, Mr. Munson has been responsible for continuing to build TEMA’s supplier diversity program, with an emphasis on sourcing and development of minority and women business enterprises. Mr. Munson is responsible for the daily operations of the supplier diversity team.

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DIVERSITY

Kia McWhorter

Melinda Durstock

Specialist Ms. McWhorter has been with TEMA since 2007. As a Supplier Diversity Specialist, she leads projects such as Toyota’s annual Opportunity Exchange, developing TEMA’s WBE spend inclusion strategy, collaborating on internal W/MBE joint venture assessments, and serving as the budget advisor. Her experience in MBE development includes management consulting and economic inclusion planning on construction projects and increasing diverse supplier interaction with corporate partners.

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Toni Gissendanner

Specialist A member of the Supplier Diversity team since 2011, Ms. Durstock is a liaison between M/WBEs and Toyota groups, with

Contract Specialist Ms. Gissendanner’s role as Contract Specialist includes responsibility for Tier II tracking and diversity spend as well as

responsibility for Lead Tier I diversity spend and supporting Tier II diversity spend.

Her previous TEMA purchasing experience includes Supplier Pre-Production Preparation group, Supplier Improvement Office, Purchasing Systems, and Buyer.

acting as a liaison between Toyota groups and diverse suppliers.

Alicia Johnson Event Coordinator As Event Coordinator, Ms. Johnson plans and executes all Toyota Supplier Diversity sponsored events and coordinates executive management participation in tradeshows. She also leads the promotion of special events and activities and assists in the development of publications and marketing materials.

Patricia Wasson Staff Assistant Ms. Wasson supports Supplier Diversity management with budget submissions, travel logistics, daily scheduling and report updates. Her previous roles with TEMA include purchasing steel and lease purchasing.

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Toyota Launches Focus on WomenOwned Businesses in Supplier Base

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Kazuhiro Miyauchi, Executive Vice President, TEMA Purchasing, Pamela Prince-Eason, President & CEO, WBENC Robert Young, Vice President, TEMA Purchasing 2nd row (standing): Mike Goss, General Manager, TEMA External Affairs, Patricia Searle Sue Weis, Manager, TEMA Purchasing, Angela Leonard, Manager, TEMA Purchasing, John Munson, Jr., Assistant Manager, TEMA Purchasing, Supplier Diversity, Dr. Rea Waldon, Executive Director, WBENC, ORV-WBC, Greg Wilder, TEMA Corporate Compliance Officer, Millie Marshall, Vice President, TEMA Human Resources, Gene Tabor, General Manager, TEMA Purchasing, Candace Waterman, Senior Director, WBENC Compliance & Alliance Relationships, Nicole Edwards, Manager, TEMA Purchasing

The honor of recently being named 2011 Corporation of the Year by the National Minority Supplier Development Council affirms that Toyota is well on the way to achieving the objective of having worldclass supplier diversity processes. But while our processes and best practices are indeed solid, it is time to adapt our supplier diversity strategy to reflect a very significant economic powerhouse—women-owned businesses.

Demographic changes and key statistics support the undeniable influence of women in the marketplace. For example, according to J.D. Powers & Associates, women are a decisive influencer in 93 percent of all vehicle purchases, and make more than 65 percent of all new car purchases.

Additionally, woman-owned businesses are emerging as one of the fastest-growing segments of our nation’s recovering economy, with 9.1 million women-owned businesses in the U.S. today, 11 percent of which are represented in the manufacturing industries.

Toyota is pleased to announce the launch of a new supplier diversity initiative aimed at increasing our engagement levels with toyotasupplier.com // 2012 ISSUE 1 // PAGE 8

Women Business Enterprises (WBEs) in our supplier base. By focusing on and formalizing our inclusion of more WBEs in our supplier base, we are more actively engaging this strong economic sector and also aligning our diversity processes with competitors and colleagues within and outside of the automotive industry.

Specifically, TEMA is adopting a two percent WBE spend target. We are still assessing trends and will establish the goal date for achieving this target in the near future. The WBE spend target will be introduced and incorporated into our annual flagship event, Opportunity Exchange. A Tier II WBE target will also be set in the future.

Having a strong and sustainable base of diverse suppliers ultimately results in Toyota’s ability to better address customer needs and allows us to contribute to local economies across the nation. We look forward to establishing and building relationships with more WBEs and working collaboratively within TEMA to identify opportunities for continually diversifying our supply base.

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Please Join The Toyota Team At The Following Upcoming Events

Q1

April

May

June

9 & 10 ORV/WBC 3rd Annual “Catch the Wave Of Success” Regional Conference Louisville, KY www.orvwbc.org

1–3 MMSDC Procurement Conference Detroit, MI www.mmbdc.com

4 MMSDC 28th Annual Invitational Golf Tournament Detroit, MI www.mmbdc.com

10 & 11 CAMSC Diversity Procurement Fair Toronto, ON www.camsc.ca 18 & 19 IMSDC Business Opportunity Fair Indianapolis, IN www.imsdc.org

7 NABS 24th Annual Scholarship Fund Luncheon Detroit, MI www.nabssf.org 14 – 16 SCOMSDC Ohio Business Opportunity Fair Columbus, OH www.scombc.org 23 NMSDC Minority Business Leadership Award Dinner Dance New York, NY www.nmsdc.org

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14 & 15 SMSDC Premier Face Time Expo & Golf Tournament San Antonio, TX www.smsdc.org 19 – 21 WBENC 2012 National Conference & Business Fair Orlando, FL www.wbenc.org

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Awards & Highlights Supplier diversity is a strategic priority for Toyota, so having received several honors in 2011 for our achievements reinforces that we are driving in the right direction. We are very proud to have been recognized by our peers and remain committed to developing processes and programs to support the diversity and the growth and sustainability of our suppliers.

We are pleased to tell you about several honors Toyota received in 2011 for achievements in supplier diversity. Because our diverse suppliers are essential to our company’s success, we share the recognition with you in appreciation of your continued commitment to excellence.

Most notably, Toyota was named 2011 Corporation of the Year by the National Minority Supplier Development Council (NMSDC). The award was presented last October during the NMSDC National Conference and Business Opportunity Fair in Atlanta. This prestigious honor reflects the hard work and dedication of our employees and suppliers and affirms we are driving in the right direction toward having world-class diversity and inclusion standards across all divisions of our company.

Two members of TEMA’s Supplier Diversity management team also received honors in 2011: Adrienne Trimble, Manager, was named Supplier Diversity Advocate of the Year by the South Central Ohio Minority Supplier Development Council.

John Munson, Jr., Assistant Manager, will be serving as the 2012 Treasurer of NMSDC’s Automotive Industry Group (AIG).

continued

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In addition to winning the top NMSDC award, Toyota was also named Corporation

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of the Year by three regional NMSDC chapters in 2011:

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South Central Ohio Minority Supplier Development Council (SCOMSDC)

Southwest (Texas) Minority Supplier Development Council (SMSDC)

Tri-State (Kentucky/Southern Indiana/West Virginia) Minority Supplier Development Council (TSMSDC)

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An Insider’s Perspective on Opportunity Exchange Logistics. Scheduling. Transportation. Food service. Marketing.

While reading like an inventory of supplier services utilized by Toyota, in this case the list represents many of the elements going into our annual Opportunity Exchange (OE) event.

As you can imagine, a full roster of individuals holds responsibility for ensuring each aspect of OE is thoroughly planned and perfectly executed.

Coordinating the myriad of OE activities in 2011 was Suzanne Martin, Assistant Manager and OE Project Lead. She provides her perspective on how a team of Toyota employees and an external planning committee collaborate to execute one of the region’s biggest and most successful supplier diversity networking and development events.

Q. What were your responsibilities as project lead for the 2011 Opportunity Exchange?

Suzanne Martin (SM): I oversaw all aspects of the event, including scheduling and coordinating activities between our internal OE teams and an external OE planning committee. The internal team consists primarily of members from the two Toyota departments working together to plan the event—Supplier Diversity and Supplier Relations. Supplier Diversity coordinates the content and serves as the external face of the event, while Supplier Relations coordinates event logistics and vendor management. Team members of the Purchasing Division and Supplier Diversity Divisional Champions from throughout the company also provide OE support.

Q. How does your external OE planning committee assist with the event?

SM: Our external OE committee provides invaluable assistance and guidance as we plan and execute the event. Committee members include Tier 1 suppliers, MBEs, NMSDC Regional Council Members and community leaders. They help us to understand issues faced by our attendees

and offer expert direction on how we can provide the best and most valuable OE programming.

Q. How was OE attendance in 2011? Were attendees mostly from the immediate area?

SM: We are pleased that OE attendance numbers have remained relatively constant in recent years. While most of our attendees are from Ohio, Kentucky, Indiana, Michigan and Tennessee, we have welcomed guests from nearly every state, including a few from as far away as California.

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“

Without a doubt, the key feature of OE is making connections. Our event offers a forum for

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M/WBEs to establish and nurture relationships directly with Toyota’s Tier I suppliers.

”

Q. The Opportunity Exchange trade show is very impressive. How are exhibitors selected?

SM: All of the nearly 260 exhibitors at the 2011 OE were Toyota Tier I suppliers.

Our event differs from many other trade shows, where Tier I and Tier II suppliers, M/WBEs and other vendors can exhibit.

With only Tier I suppliers exhibiting at OE, expectations are clarified and MBE and WBE attendees can target exhibitors to meet and discuss tangible business opportunities.

Q. How are topics and speakers chosen for the OE seminars?

SM: Our committee is very helpful in vetting seminar topics and we get great ideas from responses to the OE attendee

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surveys. We are always looking to improve OE and make changes each year based on attendee feedback.

Several different criteria help us determine our speakers, such as level of subject expertise, relationships with NMSDC or regional councils, diversity leadership or engagement with industry groups. In other cases, it may depend upon the speaker’s relationship with Toyota, visibility in the M/WBE community or success as a diverse supplier.

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Q. What do you believe is the most important aspect of the OE? SM: Without a doubt, the key feature of OE is making connections. Our event offers a forum for M/WBEs to establish and nurture relationships directly with Toyota’s Tier I suppliers.

Q. What advice would you give M/WBEs attending OE? SM: Do your homework! Once registered for OE, attending M/WBEs have immediate access to several online resources to help understand who will be at Opportunity Exchange. The Match-Up report helps identify specific products and services needed by exhibiting Tier I suppliers.

By being prepared to show the value proposition your company offers and actively cultivating relationships, M/WBEs can position themselves to be considered when an opportunity arises in our supplier base.

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The 2012 Toyota Opportunity Exchange is scheduled for Tuesday November 13.

Watch for registration details and program updates in the coming months.

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