The paper "Toyota Foolproof Supply Chain Management Plan" is a perfect example of a case study on management. In contemporary businesses have been driven to having operating strategies that ensure efficiency and reduction of the overall cost. Efficient businesses are able to operate at lower costs and at high capacities. This has been made necessary by stiff competition and rising costs of doing business. As a result, profits have been on a downward trend while costs have been on a rising one. Most industries have been affected and the automobile industry has not been left behind as well.
The supply chain and its management in a company determine the volume of sales that a company can archive, given its operating capacities. Supply chain management deals with both inbound and outbound logistics. Inbound logistics in the supply chain perspective deal with procurement and supplies of raw materials and other supplies needed by the organization. Outbound deals with the final product and its delivery to the consumer. Toyota as one of the largest automobile companies in the world has massive supply chain requirements in its various portfolios.
First, it manufactures a wide array of motor vehicles and spare parts that are distributed all over the world. Adoption of a foolproof supply chain strategy has its own challenges as well as advantages. Supply to different parts of the world has its own challenges, depending on the dynamics of operations which vary regionally. Again, the automobile industry has its own operating dynamics and challenges which would also determine the success of such a strategy Introduction Toyota is one of the largest and most successful automobile companies in the world today.
The company operates on a global scale and serves millions of consumers all over the world. In order to suffice the market, the company requires efficient management and application of strategies that serve such a huge population. In this view, the supply chain management system of Toyota is very complicated due to its widespread orientation. The company has to constantly deal with huge supplies and receipt of commodities required to run smoothly (Andrews, Simon, & Zhao, 2011, p. 1064). In supply chain management, the company has to deal with frequent challenges both locally and internationally. Supply chain management in the automotive industry The automobile industry has diverse dynamics that affect its operations in many ways.
First, there are many competing players who supply products that are determined by different consumer tastes and preferences. In this view different vehicles are made for different consumers who have different kinds of needs (Grö tsch, Blome, & Schleper, 2013, p. 2842). For instance, Toyota makes a number of luxury vehicles that it distributes throughout the world. They also make heavy commercial vehicles that are used in many countries in the transport industry.
Being the largest automobile company in the world, the company cannot afford to have hitches in its operations. a hitch in the main production firms in Japan often spill over to other nations and cause huge losses to the company and stakeholders that have invested heavily in the company. The operations of the company are mostly centralized in Japan with other countries acting as intermediaries and assembly points. Therefore, the supply chain begins in Japan where more than 90% of parts and completed parts are sourced (Marksberry, 2012, p.
279). This calls for extreme efficiency and accuracy, given the number of vehicles that Toyota sells globally in the whole world. Even with other major competitors in Europe and America, Toyota still remains the major player, beating companies like Mercedes, Benz, Ford, BMW, among other competitors. Generally, players in the Asian market have dominated the automobile industry with appealing products to persons with low and average disposable incomes in developing and emerging nations.
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