Integrated Report 2021(For the year ended December 31, 2020)

201020092012201120142013201620152018201920204282017“Theoretical-Value-Based Procurement” and the Supply Chain Monozukuri Procurement Evolving amid the COVID-19 Pandemic“Theoretical-value-based procurement” is an initiative unique to the Company underway in collaboration with its business partners.This approach—implemented with our partners—extends to procure-ment the theoretical-value-based production approach applied to our manufacturing and production processes, in other words, first drawing up an ideal vision and then conducting improvement activities striving to achieve high-quality output.Yamaha Motor is standardizing procedures and developing frame-works for its business partners to take independent action as the global COVID-19 pandemic has placed significant restrictions upon on-site activities. For example, we have begun conducting verifications and offering support via video by connecting with business partners through online conference systems. We have also launched co-creative concur-rent engineering activities in which we collaborate with business part-ners from the product planning phase utilizing actual procurement items. Through these efforts, we aim to raise productivity and quality as well as reduce raw material costs, and we are also now able to generate ideas for raising product value in the early stages of development.As of fiscal 2020, 428 suppliers around the world have adopted our theoretical-value-based production approach. This has enabled us to go beyond simply procuring the necessary components based on blueprints and instead engage in more ideal Monozukuri with business partners that includes consideration for materials and manufacturing processes. By evolving our Monozukuri procurement approach even amid the COVID-19 pandemic, we are aiming to create a more robust procure-ment network.Strengthening Our Ties with Business PartnersYamaha Motor openly shares its policies with its suppliers and exchanges of information and opinions are facilitated through various venues to help align us toward a common goal.As one such venue, the Company holds the annual Global Suppliers Conference that gathers major business partners and suppliers from around the world. This event serves as an opportunity to share Yamaha Motor’s vision and explain its initiatives. In addition, the conference includes the presentation of awards to excellent partners in each busi-ness, the introduction of examples of theoretical-value-based procure-ment in practice, and the display of new products.The COVID-19 pandemic forced an abrupt cancellation of the 2020 Global Suppliers Conference and the 2021 conference was held online instead. A total of 250 business partners from 13 countries were invited to this online conference, at which we sought ways to resolve societal issues together with business partners through our focus areas of Advancing Robotics, Rethinking Solution, and Transforming Mobility, and shared with our Monozukuri partners our dedication to co-creation that heightens corporate value for everyone. The pandemic has impaired our ability to hold face-to-face and group events, but we nevertheless remain committed to promoting mutual communication with an even wider range of business partners by transitioning to virtual information-sharing and communication methods via ICT and capitalizing on the benefits thereof.ProcurementTo deliver our unique, high-performance, high-quality products throughout the world, procuring a diverse variety of quality parts and materials with a global perspective becomes crucial. By proactively communicating with our suppliers and business partners, we develop trusting relationships and engage in Monozukuri based on a spirit of co-creation with uniquely Yamaha efforts that not only raise global competitiveness but also earn the respect and appreciation of society and mutually raise the corporate value of all parties.Global Implementation of Theoretical-Value-Based Production(No. of companies)Use of online conference systemsSharing details on initiatives at the 2021 Global Suppliers Conference, which was held online 42Foundations for Creating CompetitivenessYamaha Motor Co., Ltd. Integrated Report 2021 Overseas Japan

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