Fundamental approach to suppliers
A single Honda automobile is made of 20,000 to 30,000 parts. Manufacturing our automobiles and other products depends on close cooperation with business partners who supply the necessary parts and materials. As our manufacturing base has expanded globally, the trust-based relationships we have established with thousands of suppliers around the world have become crucial to maintaining stable production and fulfilling our commitment to the continuing enhancement of quality and advanced product performance. Recognizing the importance of its relationship with suppliers, Honda is building long-term relationships and growing hand-in-hand with its business partners.
Building trust on the basis of three purchasing principles
Seeking to foster the trust of our business partners worldwide, we maintain fairness in our relationships by respecting all prevailing laws and regulations while securing free competition, treating all suppliers as equals and respecting the independence of suppliers in accordance with our three purchasing principles.
Purchasing guidelines and the three purchasing principles
Our purchasing guidelines
Our objective: To foster long-term relationships through the timely procurement of high-quality goods at reasonable prices.
Our three purchasing principles
1. Procurement based on free competition
· Through free competition, we will build greater global competitiveness.
· We will open our doors to all suppliers around the world.
· We will seek to realize stable procurement of quality goods in the right volumes, at the right times, and at the right prices.
2. Equal treatment of all suppliers
· We will treat all suppliers as equals, regardless of their size.
3. Respect for the independence of suppliers
· We will respect the independence, policies, technology, and expertise of our suppliers.
· We expect suppliers to compete vigorously and choose their own business path.
Treating suppliers as equals and respecting their independence
In striving for growth through long-term relationships, Honda's purchasing division takes care to provide equal opportunity to any supplier who seeks to do business with us. We choose suppliers via fair processes while respecting their independence and treating them as equals. We select optimal vendors for parts and raw materials from multiple candidates based on an evaluation of such factors as technical capability; quality, cost, and delivery (QCD); financial position; and compliance, environmental conservation, and information security initiatives.
Providing customers with good products that maximize the joy of customers with speed, affordability and low CO2 emissions
Honda has adopted "Best possible QCDDE: Sensing worldwide, acting worldwide, creating worldwide" as its purchasing policy for the 10-year period beginning in 2011. We are communicating closely with business partners around the world to implement this policy in order to achieve our goal of providing customers with good products that maximize the joy of customers with speed, affordability and low CO2 emissions.
Enhancing partnerships
We strive to build strong partnerships with suppliers in order to maintain high levels of quality.
Building purchasing and procurement systems
We work with suppliers to enhance CSR programs, procure environmentally friendly materials and parts, and pursue energy-saving activities.
Strengthening compliance with purchasing policies
We strive to enhance compliance through associate training and aggressive observance of all applicable laws and regulations.
