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Toyota Supply Chain Management- Factors Influencing The Strategies Success


Discuss about the Supply Chain Management for Toyota Motor Corporation.


Toyota Motor Corporation is a Japanese automobile manufacturer with its head office at Aichi Japan. The Toyota supply chain management strategy has resulted in the company being today among the leading automobile manufacturer and employs over 500,000 workers on its plants across Japan and the globe. Toyota was established by Kiichiro Toyoda in 1937 and has gradually grown over the years to become the largest automobile manufacturer globally. Today Toyota manufactures over 10 million automobile falling under different categories ranging from private, to luxury and commercial vehicles. In addition to the Toyota Brand, the company also manufactures vehicles under Lexus, Ranz, Scion, and Hino Brands which are also globally renowned and target different nations and terrain. Toyota has managed to develop positive reputation among automobile consumers globally due to the vehicles strength and affordability which has resulted in Toyota growing to be the largest automobile manufacturer and brand globally.

This report will review Toyotas strategic management approaches to determine precise factors which influence the business operations and success. This information will then be organized in a systematic manner to help deliver approaches based on which other businesses can implement and improve their operations and growth success. Toyota techniques will be clearly documented and referenced whereby the viability of the get together structuring procedure and making arrangements for the texture request are analysed through the apparatus of offer chain speculations. In conclusion, the expectation models are checked on and along these lines the main model is referenced for Toyota Company.

Key operational chain processes at Toyota
Key Toyota supply chain management processes at Toyota include identifications of existing products, data streaming, consumer expectation and income statistics. This four elements play an important role towards determining Toyota operations objectives based on which the companies management make decisions to determine areas the business needs to focus on to expands its operation, retain market position, meet consumer expectations and generate maximum profits while delivering affordable products to consumers (Ahi & Searcy, 2013). Income again alludes to the progression of reserve toward every path; this ensures all benefactors requirements are addressed keeping in mind each beneficiaries needs have been addressed.

Toyota Product Flow diagram

Toyota Product Flow diagram

Today is ranked as being the largest automobile manufacturer and is manufacturing a wide verity of vehicles as well as the characteristics of the automobile manufacturer’s products. To reduce the logistics involved in manufacturing of automobiles and replacements parts, Toyota has distributed its operations among multiple service providers which helps the brands better manager each operation as opposed to attempting to monitor and control the entire operation (Barney, 2012). The assembling plant is signified as an industrial facility inside the over stream outline any place the vehicle is first gotten the body look, at that point to the paint look at that point to get together and inevitably to audit. When the vehicle is made, it's sent to the outward-bound providing through that it moves to the vendor reason.

Toyota supply chain management element

Data is classified as being a Toyota supply chain management element influencing many business operations and development. Toyota is also using data to its advantage by analysing data streams which are used to determine specific business manufacturing, consumer and operational processes which can be mapped to help the business make more informed decisions related to their operations. Through the generation of graphs and numeric findings, Toyotas management can anticipate the future movements based on past data. This is important as it will help the business determine parameters which influence the business operations based on which the organisation can make informed decisions to cater to each paramour.

Data analysis involves the collection on all forms of data based on which special algorithm are prepared to analysis and determine specific movements and trends which can be used to make future predictions (Christopher, 2016). Furthermore, along these lines the data stream is rearranged by having a straightforward arrangement of the customer necessities on the time, volume, and sum and in this way the generation consolidate. The stream circle and in this way the value stream inside the organization needs to settle the time required for each errand that should be followed in any regard levels so the corporate is in a situation to unfurl the information over its specialists and enterprises successfully

The cash stream inside the organization is essentially from investors. The stream is self-tended to inside the stream graph.

stream graph in supply chain management

Corporate cash handling involves the assessment and management of vast amounts of funds devised from different locations making it imperative to have an effective finance and accounting system in place (Coyle et al., 2016). Financial management has been carefully managed by Toyota motor corporation thus ensuring accounting staff focus on their management of the operations and incomes from a different perspective. To ensure the company is managing costs effectively, it has limited its costs.

Toyota Motors Strategy
In order for Toyota to develop an effective Toyota supply chain management strategy, it is important for all stake holders to be involved to the management process. The main concern associated to effective business management is the lack of stake holder participation and contributions (Tayur, Ganeshan & Magazine, 2012). This result in company managers developing individuals driven strategies without consulting the staff regarding the practical implementation leading to delivery issues. Over time involving the staff in to business operation, decision making and strategy development has become mandatory for the business to achieve success. Toyota uses the Heijunka rule to shape the corporates operation which is critical towards the businesses operations and performance. Heijunka refers to internal soothing which refers to internal satisfaction before any business operations can be developed. It is important for all businesses to develop similar strategies which shape the organisations performance and contribute towards growth and development of the Toyota motor corporation.

To improve accuracy, Toyota analysts divide the data on a weekly, monthly and quarterly basis thus allowing the business prepare accurate reports outlining the businesses operations at different times of the year. Cumulative yearly reports are also generated to help determine annual movements which may be used to determine consumer purchasing trends and improve the business operations. The data can then be filtered to help the company determine specific trends which will be influential towards determining consumer trends and the brands ability to deliver on consumer expectations. Toyota has adopted analytics to help it better manager its operations but this also means the company has had to adopt modern technologies to help collect, store and analysis the data. Analytics is purely data driven, making it important for Toyota staff and management to collect and store all forms of data generated directly or indirectly by the business, its stake holders and competitors. All this information requires be collecting and organizing in a systematic manner and storing securely till further use. The system also needs to be capable of adding more information to the database. Analysis will then be provided with specific types of raw data allowing them to perform the analysis and report their findings. The main data frames will always retain their classifications and cannot be modified or accessed directly. Specific computations of the time plan once the parts are to be amassed. Any mix-up or missing the booked time for a moment may cause loss of generation of numerous vehicles and influences the month to month volume of creation. The abroad material interest alludes to making modification underway in venture with the delivery recurrence and hence the size of the ton.

Toyota may be an automobile industry leader but the company has had to adopt modern technologies to assist improving Toyota supply chain management operations and customer satisfaction. This has seem Toyota addressing consumer as well as its staff needs, as these two entities play an important role towards every organisations development and growth. Staff and company employees have been viewed as a replicable commodity in the past but today businesses are adopting new approaches towards addressing staffing needs. Staffs play an important role towards brand development, growth and most importantly towards collecting and reporting of important data and statistics. In order for Toyota to ensure it is secure valuable data from the assembly lines as well as from the field, it is essential for the business to staff to be comfortable and prepared to contribute towards the brands research and development. (Bozarth and Handfield, 2016). Only by including the staff in to the research and development process will Toyota be able to secure information which can be used to build increase brand value thus encouraging further development and brands expansion.

Automation has been another area of concern due to it contributing towards cost reduction but at the same time it has also been outlined for being and aspect that is taking away peoples jobs from the company (Brandenburg et al., 2014). Toyota has therefore had to come up with some important approaches linked to the businesses performance which has resulted in delivering a balance between automation and staff retention strategies thus addressing each stake holder’s needs. Today this has helped the company gradually develop its strategy thus helping the brand keep its staff members happy and secure while also reducing manufacturing costs by adopting automation.

In addition to developing new products and vehicles, it is important for Toyota to also asses’ public trends and concerns linked to environment degradation and pollution. Vehicles continue to be blamed for the majority of Co2 emissions so it is Toyotas responsibility to also assess the consumer needs and present and detailed report outlining the concern, projects problem solutions and factors that will influence the successful implementation. This is important since the public mainly focuses on what the governments and corporate players are expected to address but forget they also have a role to play towards addressing the concerns.

The Supply Chain forecast
Automobile sales are expected to continue increasing well in to the future due to the demand for private transport also on the rise (Fawcett, Ellram & Ogden, 2014). Toyota is therefore expected to continue reporting increasing sales but the company will have to adopt modern technologies and environmental concerns to help the business retain consumer internet and address their concerns )Monczka et al., 2015).

The two most far-celebrated offer chain forecast ways are improvement and recreation methods. In progress that is based on a blended entire number program, figure request so the designs for the gathering, stock, and transportation will be drawn, bolstered that the accessibility chain cost will be decreased. The contrary strategy of expectation is reproduction methods that encourage executing the executives anticipates a regular routine by abuse the interest history over a multiyear sum.

Consumers continue to focus on securing the highest quality at the lowest cost making it inevitable for corporate companies like Toyota to continue developing new products while focusing on reducing their production costs but also delivering top quality (Schönsleben, 2016). The new and improved system ensures accurate record keeping which is beneficial for each stake holder and educated each individual regarding their contributions.

The business sectors any place the data sources aren't available at low value, the corporate attempts to limit the accessibility arrange so the cost of generation decreases (Stadtler, 2015). The corporate needs to estimate the accessibility chain the executives of such market viably so there's no postponement inside the supply of the items. The recreation procedure will be utilized for compelling outcomes

In the past offer chain the executives wasn't thought of as separated of the procedure anyway well-ordered Toyota officials and CEO complete the significance of inventory network the board and it turned into a critical half of} ways for powerful happen to the corporate. The proactive activities on the accessibility chain framework encourage the corporate to determine the unimportant issues and increment the power of the get together of the association.

The forecast of offer chain the executive’s needs an unmistakable very ability with integration foundation that may blend the overall aptitude with imaginative downside goals and expository aptitudes (Christopher, 2016). It needs evident advancements and loads of enterprises have begun offering significance to the forecast of offer chain the executives and perceived its significance inside what's to come

Kanban is the main Toyota supply chain management framework which is an essential process management system that helps the business determine individuals stake holder needs and future improvements. It’s essential to make sure every aspect of the operation is well understood by each stake holder and their individuals contributions have been made towards the process thus ensuring Toyota continues registering growth and development (Wisner, Tan & Leong, 2014). The Kanban framework helps locate important information related to the existing operations based on which improvements can be developed. Adopting moderns frameworks and analysis techniques has help Toyota retain its current market position and can be easily be used to help toots retain this position in the future.

Generally Kanban cards were wont to send word the providers. As of now it's been supplanted by AN electronic framework any place the sign are sent precisely to the providers once the buyers devour the assets. It’s been authorized inside the Enterprise Resource planning System like Microsoft Dynamics and SAP ERP

Toyota supply chain management framework

Figure1: The Kanban System in SAP ERP

The figure demonstrates the Kanban framework in SP ERP won’t to follow the lack of supply and to interface the interest straightforwardly with the get together and give of the pleasant.

Toyota is the largest automobile manufacturer globally and continues to report growth due to the increasing demand for the brands vehicles. This has made it important for the brand to adopt modern technologies to help address each of its operation aspects to help the brand retain its current position as well as be innovative towards future growth prospects and developing. The Toyota supply chain management may require modifications and innovation to its existing products thus helping the brand diversity to other field and reducing its reliance on a single product type. Toyota supply chain management assignments are being prepared by our scm assignment help experts from top universities which let us to provide you a reliable quality assignment help service.

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Barney, J. B. (2012). Purchasing, supply chain management and sustained competitive advantage: The relevance of resource based theory. Journal of Supply Chain Management, 48(2), 3-6.

Bozarth, C. B., & Handfield, R. B. (2016). Introduction to operations and supply chain management. Pearson Higher Ed.

Brandenburg, M., Govindan, K., Sarkis, J., & Seuring, S. (2014). Quantitative models for sustainable supply chain management: Developments and directions. European Journal of Operational Research,233(2), 299-312.

Christopher, M. (2016). Logistics & supply chain management. Pearson Higher Ed.

Coyle, J. J., Langley, C. J., Novack, R. A., & Gibson, B. (2016). Supply chain management: a logistics perspective. Nelson Education.

Fawcett, S. E., Ellram, L., & Ogden, J. A. (2014). Supply Chain Management: From Vision to implementation Integrative Approach. Pearson Higher Ed.

Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and supply chain management. Cengage Learning.

Schönsleben, P. (2016). Integral logistics management: Operations and supply chain management within and across companies. CRC Press.

Seuring, S. (2013). A review of modelling approaches for the sustainable supply chain management. Decision support systems, 54(4), 1513-1520.

Stadtler, H. (2015). Supply chain management: An overview. Supply chain management and advanced planning (pp. 3-28). Springer Berlin Heidelberg.

Taylor, S., Ganeshan, R., & Magazine, M. (Eds.). (2012). Quantitative models for supply chain management (Vol. 17). Springer Science & Business Media.

Toyota motor corporation global website. (2009). Toyota motor corporation global website. Retrieved 29 July 2016, from

Waters, D., & Rinsler, S. (2014). Global logistics: New directions in supply chain management. Kogan Page Publishers.

Wisner, J. D., Tan, K. C., & Leong, G. K. (2014). Principles of supply chain management: a balanced approach. Cengage Learning.


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