The paper "Toyota’ s Total Supply Chain Vision" is a great example of a marketing case study. Toyota Motor Corporation manufactures motor vehicles and also provides financial services via its Toyota Financial Services department. It has a management philosophy that has developed substantially since its commencement and has been described with regard to “ Lean Manufacturing” as well as “ Just in Time Production” which were very fundamental to their development. This report will look at their logistics activities which involve both inbound and outbound. In addition, this report will demonstrate the efforts Toyota has put to control supply chain risks and costs.
The company has put in expansion strategies with an air of caution and focuses on addressing the demands of their customers and at the same time minimizing the risks that accompany supply chains. Furthermore, the report will describe the centralized and decentralized logistics activities of Toyota. The report will also discuss the management of import and export activities where Toyota imports parts from overseas and into North America as well as their packing loops and rack standards. 2.0 Introduction Toyota Motor Corporation has its headquarters in the Toyota City of Aichi and also Tokyo.
It manufactures motor vehicles and also provides financial services via its Toyota Financial Services department (Ludwig, 2013). Toyota management philosophy has developed since its origin and has been described with regard to “ Lean Manufacturing” as well as “ Just in Time Production” which were very fundamental to their development. Furthermore, Toyota has managerial values as well as business approaches commonly known as the Toyota Way (Ludwig, 2013). This report will discuss the logistics management activities in Toyota Motor Corporation and the efforts the company is employing to control supply chain risks and costs.
Furthermore, it will highlight Toyota’ s centralized and decentralized logistics as well as their logistics flows and trucking routes. 2.1 Toyota’ s Logistics Management Activities The “ Toyota Way” integrates Toyota Production System (TPS) whose main objective is to design out overload as well as an inconsistency (Ludwig, 2013). It is also designed to face out waste and they utilize fundamental principles such as just in time and lean manufacturing. Toyota constitutes a partnership with a restricted number of 3Pls. it consists of an inbound logistics process that is known as logistics network which consists of suppliers, cross-docks as well as Toyota’ s plants (Ludwig, 2013).
They have a Milk Route that has a plan done once a month with which they ensure that both the location and the number of the entities are well known and recorded. In these Milk Routes, they also consider road routes as well as distances between every probable destination. In addition, Toyota also has an outbound logistics which is also described as product distribution since the work of outbound logistics is to disseminate their final products from the OEM plants and delivered to the various retailers (Ludwig, 2013).
The outbound logistics involves marshalling vehicles at the yard, performing final quality assurance and delivering the vehicles to dealers either by railroad and trucks or even directly by trucks (Ludwig, 2013). 2.2 Efforts for Controlling Supply Chain Risks and Costs Toyota’ s effort to take ahold of the supply chains as well as other costs can be identified across its international processes although their opportunities to catch economies of scale and hence come up with more informed decisions and probably important in North America (Ludwig, 2013).
It is considered the hugest market that averaged about 2.2 million vehicles the previous year and is estimated to surpass the 2.4 million mark this year. The products supplied to North America falls second after Japan at about 1.77 million units the previous year (Ludwig, 2013). Furthermore, Toyota has vehicles as well as component production in almost a dozen states including Canada and Mexico.
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