Kiichiro Toyota's Value Chain Analysis And Development Of The Toyota Motor Corporation

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Kiichiro Toyoda was the founder of Toyota Motor Corporation and the automotive-centered Toyota Group. Kiichiro was a keen, skillful inventor and the continuous resolve of invention helped him to create the business base acquired from his father, Sakichi Toyoda. With the incessant drive towards innovation and invention, Kiichiro extended into the automotive business and build the groundwork of Toyota Group that you see today. In 2008, Toyota's sales surpassed General Motors, making Toyota number one in the world. In 2010, Toyota employed 350,005 people worldwide, and was ranked the third-largest automobile manufacturer in 2011 in terms of production, behind General Motors and Volkswagen Group. Toyota is also ranked as the eleventh-largest company in the world by revenue. In July 2012, the company …show more content…

Inbound logistics The main aspect of Toyota Company’s value chain analysis is the inbound logistics. Inbound logistics use JIT (Just-in-Time) system of production as it decreases the inventory cost. JIT helps Toyota to optimize their assembling and production process as well as to minimize parts going to waste or getting unused as inventory. Inbound logistics are the goods that the company receives from its suppliers and store for some period of time until the moment when they will be used in the production process. Toyota company does not have and is not able to create own raw materials that are needed for assembling of cars, thus it has to collaborate with a third party. Toyota orders the raw materials from all over the world and in the interest of maximizing their availability of raw materials; they maintain good relationships with their suppliers. Toyota uses Just-in-Time system to manage the supply of raw materials as well as optimizing the supply and production processes.

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