In 1994, Mazda set the following basic purchasing policy:

Mazda will, in the fullest sense of coexistence and mutual prosperity, engage in research and production for improved competitiveness. We will build open and fair business relationships to ensure sustainable growth and raise our level of contributions for social and economic development.

Based on this policy, we take every measure to ensure fair and even-handed dealings with our suppliers around the world.

We base our assessments of business dealings with our suppliers on a comprehensive evaluation that covers not only quality, technical strengths, pricing, delivery time and management approach, but also their corporate compliance structure and initiatives to preserve the environment.

To enable the building of better cars, Mazda believes in the importance of forging long-term, stable relationships with suppliers that are mutually beneficial. To this end, Mazda arranges a wide range of opportunities for the active exchange of information, and takes steps to promptly brief suppliers on medium- to long-term business strategies and on matters related to sales and production.

We organize roundtable conferences with supplier executives once a year to explain our purchasing approach, annual Supplier Meeting, and a monthly supplier communication meeting with representatives of front-line business divisions and departments. Through these meetings, we explain our priority measures and make requests relating to environmental protection and compliance matters.

Supplier communication meetings are a vital forum for communication between Mazda and its suppliers. At these events, we distribute My Mazda, an in-house magazine, and distribute opinion questionnaires, which we use to improve the way these liaison meetings are managed. We also publish on our Web site the Mazda Technical Review, which introduces internal data on new research and technologies.

We also maintain close liaison with supplier-managed purchasing cooperative organizations, striving for coexistence and mutual growth and prosperity for all parties.

Every year, Mazda surveys the status of its supplier relationships from a wide variety of perspectives. These studies assess the advisability of continuing the business relationship as is, and the necessity of remedial guidance. The results of these evaluations are passed on to our suppliers.

During FY2008, Mazda conferred awards on 66 parts suppliers and 11 materials suppliers.

Requirements for Excellence in Supply Chain Management

Mazda distributes the "Request for Total Compliance with Labor Related Laws" to strongly urge its suppliers to prioritize compliance with the law and corporate ethics. We also value environmental performance in supply chain management and take measures to encourage green procurement activities.

Recognizing that the cooperation of suppliers is indispensable in assuring strict compliance with all laws involving subcontracting, in FY2008 Mazda offered its suppliers seminars on subcontracting. This was followed by a renewed call to maintain thorough, strict compliance. In addition, Mazda conducted a questionnaire survey of some 60 local suppliers, requesting self-diagnosis regarding compliance with subcontracting law, confirming the resolute compliance of each company. Based on the results of these questionnaires, Mazda conducts onsite diagnoses at each site and provides guidance on improvement activities.

To ensure mutual prosperity with its suppliers, Mazda believes it is important not only to make requests in accordance with society's needs, but also to offer wide-ranging support, through joint activities and other efforts.

One such measure is the Japan–Achieve Best Cost (J-ABC) program, an initiative to maximize cost-performance at suppliers that handle particularly large volumes. Mazda employees visit the plants of local suppliers to pinpoint wasteful and problematic manufacturing processes and discuss remedial measures.

As one part of our J-ABC activities, we organized the J-ABC Karakuri Kaizen Dojo. This workshop promotes a simple message: "Avoid risky practices, excel at creativity, and make work more fun." In FY2008, we held the 4th J-ABC Tricks of the Trade Dojo between April and August 2008, and we held the 5th workshop between October 2008 and February 2009. This year's dojo included programs on theory (lecture based on textbooks) and practice (lecture-based manufacturing), as well as onsite guidance meetings, results announcement meetings and onsite inspection meetings, with the goal of raising productivity at each company.

In FY2006, Mazda introduced the Mazda Quality School to support personnel development at its local suppliers. This series of quality seminars is aimed at younger and mid-career employees who head quality and manufacturing divisions and departments, because of their central role in suppliers' quality assurance and improvement activities. At these classes, Mazda deepens participants' understanding of its approaches to quality and hones their perceptiveness in overall quality management, through the examination of quality request documents, study of actual cases of defects, and the fostering of a full and frank exchange of opinions.

In FY2008, we offered a series of 10 Mazda Quality School classes. In response to strong demand from participants, these classes focused on evaluation of process assurance and routine maintenance (change management, outsourcing management, etc). Approximately 100 participants from 49 companies attended. The classes were enthusiastically received, resulting in comments from participants such as "Now I have a much deeper understanding of process assurance evaluation," and "Studying with people from other companies, exchanging views and presenting cases enabled me to learn about other companies' perspectives." Mazda plans to continue Mazda Quality School classes in FY2009, once more emphasizing topics such as process assurance and routine maintenance.

Mazda has organized Mazda Quality Training targeting local suppliers since 1999. This initiative, concentrated on staff at the core of suppliers' quality enhancement activities, provides an introduction to and training in improvement pathways and techniques from various quality control perspectives. Its effect is to empower suppliers as quality enhancement leaders and advisors.

In FY2008, three classes were presented over a total of seven occasions, with 175 participants in attendance. Reviews were highly favorable, and comments included statements such as "Now I understand QC methods," and "I can't wait to apply what I learned to in-house training and actual operations."