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Assignment 1 Toyota Supply Chain Management

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Supply chain Management

Submitted By-:
Akshay, Jyoti P, Nashra, Sarvesh
Supplier
Suppliers Procurement
Relation

Manufacturing Distribution
Distribution model of Toyota
North American Production
Production distributed in North America
Scion Model
European distribution Model
Japanese distribution Model
Toyota Logistics
Toyota use 3PLs logistic –
In 2002, Toyota Industries launched its 3PL, they also
incorporates some elements of a 4PL model. 
Toyota Logistics
Toyota Logistics
Logistic Strategies of Toyota
1. Lean thinking -
Just-In-Time (JIT) Delivery: Delivery of
the right parts and components to the right
place at the right time.
2. Collaborative Logistics
3. Smart Trucks

Milk round at Toyota


Logistic Strategies
of Toyota
1. Kaizen:
 Kai=”change”, Zen=”for better”
 e.g., Toyota Forklift Kaizen

2. Cross-Docking:

• With Driver

• No Driver
Logistic Strategies
of Toyota
1. Green Logistics –
• Promoting intermodal transportation
• multiple modes of transportation

2. Returnable Packaging Containers


Inventory control
Toyota Production system (TPS)
Pull Based Production

JIDOKA JIT(just in Time)


It ensures products are made with high
levels of quality because defect are They order inventory whenever
automatically detected throughout the the inventory will be require not before
process that
Inventory control
• Takt Time

• Flow Production
• With each step making just what is required by
the next step.

• Pull System

Push Pull
Remedial Actions

Source: Suga than, S. (2021). An empirical study on growth of supply chain management in
Toyota Motors. IARJSET, 8(8). https://doi.org/10.17148/iarjset.2021.8802
Globalization of operation of manufacturing

Problem Action Result


1. There was a need of 1. Regional Production 1. Increased Efficiency
globalization of
manufacturing 2. Supplier Networks 2. Greater Flexibility

2. Procurement operation 3. Standardized 3. Improved Quality


of supply chain Production System
management. 4. Enhanced Innovation
4. Cross-Cultural
3. The challenge is to Collaboration
select a supplier
between best quality
provider around world
or local supplier.
Quality and safety of product

Problem Action Result


1. The challenge for 1. Recall Campaigns 1. Improved Quality
Toyota is to produce
product of high quality 2. Quality Assurance 2. Products that are both
and safety Processes safe and reliable

2. The number of product 3. High quality raw 3. Customer Satisfaction


recall cases in material
automobile industry is 4. Brand Image
increasing. 4. Customer
Communication
3. It was damaging the
reputation and cost of 5. Continuous
the company Improvement
Less inventory, shorter lead time and better output

Problem Action Result


1. The challenge of changing 1. Just-In-Time (JIT) Production 1. Reduce inventory levels
demand of market and
shorter life cycle of 2. Kanban System 2. Shorten lead times
product
3. Kaizen 3. Improve output
2. Toyota faces challenge to
align its operational strategy 4. Supplier Development 4. Increase efficiency
with lean strategy
5. Reduce costs
3. Successful implementation
of lean manufacturing 6. Improve customer satisfaction
strategy
Consolidation of supplier base

Problem Action Result


1. The challenge faced 1. Rationalization of suppliers 1. Resilience of its supply chain
by Toyota is to select
a supplier with 2. Long-term agreements 2. Reduce the risk of disruptions
experience in solving
problems 3. Supplier development 3. Improved its supply chain
management
4. Risk assessment
4. Reliability and quality of its
products
Access to latest technology

Problem Action Result


1. The challenge faced 1. Research and 1. Ahead in Technological
by Toyota is frequent Development innovation
gradation in
technology which 2. Strategic partnerships and 2. Deliver High Quality Products
affects the new acquisitions
product development. 3. Improved efficiency in
3. Open innovation manufacturing Process

4. Continuous improvement 4. Improved quality of its


products

5. Competitive in the global


marketplace
References
1. Suga than, S. (2021). An empirical study on growth of supply chain management in Toyota Motors. IARJSET,
8(8). https://doi.org/10.17148/iarjset.2021.8802
2. Toyota Supply Chain Management: A Strategic Approach to Toyota’s Renowned System. (2009). McGraw-Hill
Companies.
3. Global Parts & Logistics Division – Toyota Tsusho India. (n.d.). Retrieved from https://ttipl.co.in/global-parts-
logistics
4. Bernard, S. (2013, October 11). Supply Chain Management of TOYOTA. . .. . ..case study by sabio bernard.
Retrieved from https://www.slideshare.net/sabiobernard/supply-chain-management-of-toyotacase-study-by-
sabio-bernard
5. Zhang, C. (n.d.). Toyota—— Supply Chain Management. Retrieved from
https://prezi.com/9sb1vkon8k6s/toyota-supply-chain-management/
6. Kp, A. (2015, November 4). Toyota supply chain management. Retrieved from
https://www.slideshare.net/kp_abhinav/toyota-supply-chain-management-54719016
7. L. (2004). The Toyota Way. New York, United States: McGraw-Hill Education.
Thank You

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