Evolution of Centralized Purchasing System for Automobile Steel Plate

Abstract

The study analyzes a steel plate purchasing system for automobiles, which exists between steel and automobile industries, from the perspective of genetic theory, with a focus on a centralized purchasing system.
The centralized purchasing system is a system in which an automaker attempts to procure steel plates not only for its in-house use but also for the use of parts and other manufacturers.
The centralized purchasing system differs among automakers. The controlled self-supply method employed by Toyota is the most efficient; how has this method been developed and formulated?
Toyota's centralized purchasing system for steel plate procurement began during the World War II. At that time, Toyota was using direct supply method. The company then eventually developed the current efficient controlled self-supply method after twists and turns, including the virtual abandonment of the centralized purchasing system at one point.
During such process of development, Toyota's procurement policy that included long-term stability, co-existence and co-prosperity, and self-dependency had been important. The existence of the policy and that of parts manufacturers and Toyota Tsusho Corporation, which developed based on synergistic effects with the policy, has enabled the adoption of the controlled self-supply system.
Also, the purpose of the centralized purchasing system has evolved from an initial response to the procurement difficulty of steel plates to the current system with the rationality of competition that excels in “Quality, Cost, and Delivery.”
In other words, Toyota's centralized purchasing system has not been based on prior agreement; nor has its development been following a linear path.