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NEWS
Key to supplier viability is diversity: Toyota
Supplier development forum participants will be told to look beyond the automotive fieldToyota is bringing together 20 of its original equipment part suppliers and two military vehicle contractors at a forum aimed at helping companies in the automotive industry enhance business viability.
The point being made by the local manufacturer to its suppliers is that they need not confine themselves to a traditional business model, servicing just local car production. They could also open up their markets by supplying to military vehicle contractors – Thales Australia and BAE Systems, in this case.
Toyota holds supplier development forums each year, but this is the first time the two defence contractors have been invited to participate. As Barry Budge sees it, it's a win-win situation for the defence contractors and the parts vendors.
"Our suppliers are amongst the most highly skilled advanced manufacturers in this country. One of the key ways our local suppliers can become more sustainable is to diversify their business," said Budge, Toyota Australia's Corporate Manager for supplier development, as quoted in a press release issued yesterday.
"Rather than be reliant on one industry, they may identify additional industries which utilise similar capabilities and develop opportunities to supply parts. For example, companies building defence vehicles may require similar parts to the automotive industry.
"Similarly, there may be companies that are currently importing parts that can easily be made by our local suppliers at a competitive cost.
"If we can facilitate these introductions, our local suppliers can strengthen their businesses and become more efficient. This will lead to a stronger local supplier base, which is critical to Toyota Australia and the future of local manufacturing."
The supplier development forum this year is being hosted by Chassis Brakes International, the company that took out Toyota's 2012 'President's Supplier of the Year Award'.
Bringing together the suppliers not only puts them in touch with Thales and BAE, it's also an informal medium for the exchange of ideas to improve productivity.
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Written byCarsales Staff
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