How Honda is Driving to Net-zero With Indirect Procurement

In October 2020, Honda declared its pursuit of releasing carbon neutrality and in April 2021 announced its aim to realise a recycling-oriented society with zero environmental impact, striving for carbon neutrality by 2050 through not only its products but throughout the entire product lifecycle including all corporate activities.

The concept behind this vision is to reduce carbon emissions based on the targets laid out in the Paris Agreement to keep the temperature rise below 1.5ºC.

It has set about setting a range of targets to achieve this pledge of net-zero emissions in all of its activities, with its automotive side setting goals to sell cars powered only by batteries or fuel cells by 2040, as well as telling its major manufacturers to reduce their own carbon emissions. 

Indirect procurement awards

As part of this goal to cut emissions across its value chain, Honda has awarded 33 suppliers for outstanding performance in providing indirect products and services to Honda business operations and manufacturing facilities across North America during its annual Indirect Procurement Supplier Conference in Dublin, Ohio. 

In 2023, purchasing from indirect suppliers, which provide goods and services not related to manufacturing for a business to enable it to maintain and develop its operations, totalled more than US$5bn.

These suppliers are classed as indirect procurement as they provide Honda with a wide range of equipment, products and services that support business operations, including manufacturing facilities. 

Those who received awards were selected from a pool of more than 5,000 suppliers and were recognised for their work in the categories of Supplier of the Year, Regional Supplier of the Year, New Supplier, Sustainability, Challenging Spirit and Outstanding Value.

‘Transforming tomorrow’

Honda’s theme for its 2024 conference is the ‘transformation of tomorrow', which the company says is of particular importance to its suppliers as Honda is transforming nearly every aspect of its business to support its global goal of achieving zero environmental impact for its products and corporate activities by 2050. 

This will, of course, require advancing new processes and technologies into the supply chain and its operation to achieve carbon neutrality, use of clean energy and resource recirculation (use of 100% sustainable materials).

"Major shifts like the one we are undertaking will unlock new potential for Honda and our suppliers, requiring that we work seamlessly together as a team to take advantage of these opportunities," says Elly Bradford, Division Lead, North American Indirect Procurement. 

"This is truly an extraordinary time to be a part of Honda and that includes being a Honda partner."

For the first time, Honda de Mexico and Honda Canada Manufacturing participated in the supplier awards program by recognizing suppliers in the category of Challenging Spirit.

The suppliers providing equipment, products and services to Honda are local, national and global in scope. This includes new suppliers and many that have grown alongside Honda in North America since the company began production in Ohio in 1979.

2024 Honda North American Indirect Procurement Supplier Award Winners

SUPPLIER OF THE YEAR

This award was given to Aires - Pittsburgh, Pennsylvania, for it continuously established strong performance, meeting all contractual obligations and bringing consistent value-add and cost reduction opportunities to Honda.

NEW SUPPLIER

This award recognises new suppliers that demonstrated outstanding implementation practices and provided value-based products, services, or programmes. It was awarded to AB Dynamics - Wixom, Michigan and First Advantage - Atlanta, Georgia

SUSTAINABILITY

This award recognises suppliers that have strong initiatives in place to drive corporate responsibility through social, economic, or environmental sustainability.

It was awarded too:

• ABB Inc. - Auburn Hills, Michigan
• A.P. Moller - Maersk - Florham Park, New Jersey
• Cintas Corporation - Mason, Ohio
• IBC, Industrial Supply Plus, Inc. - East Granby, Connecticut
• Kyndryl U.S. - New York, New York
• Trio - Irvine, California

CHALLENGING SPIRIT

Recognises suppliers that have demonstrated their commitment to Honda's Core Value of embracing a Challenging Spirit by going above and beyond expectations to ensure the success and/or delivery of a service, product, or project.

It was awarded too:

• Accenture - Chicago, Illinois
• Amazon Business - Seattle, Washington
• Auto Warehousing Co. - East Liberty, Ohio
• Brooks Distribution Services - Mebane, North Carolina
• Canadian Bearings - Mississauga, Ontario
• Deloitte. - Los Angeles, California
• DIPROLAM - Puebla, Puebla, Mexico
• E&L Construction Group's Paint Systems Division - Detroit, Michigan
• Elwood Staffing Services, Inc. - Columbus, Indiana
• GO2 PARTNERS, INC. - Columbus, Ohio
• Microsoft Corporation - Redmond, Washington
• MullenLowe - Los Angeles, California
• Oak Harbor Freight Lines, Inc. - Auburn, Washington
• Professional Auto Transport - Mira Loma, California
• VIVA Creative - Rockville, Maryland

OUTSTANDING VALUE

This award recognises suppliers that have provided their competitive advantage to Honda and delivered value and innovation through cost efficiencies, projects and services.

It was awarded too:

• Aires - Pittsburgh, Pennsylvania
• Amazon Web Services - Seattle, Washington
• Cintas Corporation - Mason, Ohio
• Federal Express Corporation - Memphis, Tennessee
• J.D. Power - Troy, Michigan
• supplyFORCE - King of Prussia, Pennsylvania
• Ulterior Products - Radnor, Ohio
• Verizon Wireless - Basking Ridge, New Jersey
• Vestis Services, LLC - Roswell, Georgia

REGIONAL SUPPLIER OF THE YEAR

This award recognises a regional supplier that has demonstrated exceptional value and ability to go above and beyond and a commitment to support focused engagements within a specific region of North America. 

It was awarded too:

• Central Region: Genric - Marysville, Ohio
• Southern Region: Motion - Birmingham, Alabama
• Western Region: Amazon Web Services - Seattle, Washington

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