Toyota Supply Chain

Supply chains are networks of organisations, information, technologies, activities and resources involved in the movement and conversion of physical goods or services from suppliers to end consumers. These different organisations are interlinked by physical, information and monetary flows. Organisations create value by transforming raw products into finished goods or repositioning of resources thru space and time, which is based on networks of supply chains. Both ways, it involves the movement and conversion of physical goods and information throughout supply chains across the world. Therefore organisations and supply chains are closely interlinked in the creation of value for its customers. Manufacturing firms produce goods for

Supply chains manage the movement of products from the acquisition of raw materials through production and finally distribution to the end user. A properly designed supply chain can create many opportunities to drive down cost and increase revenue opportunities. In order to create a supply chain that is sustainable and flexible it is necessary to identify and align company goals and initiatives with the manufacturing and distribution of products.

The supply chain is a system made amongst different companies producing and distributing the product. Specifically, the supply chain contains the steps it takes to deliver goods or services from the supplier to the customer.

Supply chains represent the procurement, production and distribution activities of an organisation. Within a supply chain, these activities are viewed as linked and reliant on one another to produce the final outcome. It is believed that if one component of the chain fails, the whole chain is broken and product/service delivery goals will not be achieved.

Toyota recognizes the impact their products have on the environment, and have taken the initiative to combat these issues. Through improvements in environmental information availability, active participation in environmental policies focusing on sustainable facilities and product developments, and self-criticism/evaluation to find flaws in critical operation tasks Toyota has become a role model in the automotive industry (Corporate Planning Div. 31).

Distribution- Finished products leave processing plants and find their way to the global marketplace via the trucks, railcars and barges that make up transportation network.

Each partner in the supply chain either produces a different product, component, semi-finished or finished product or is responsible for the logistics or warehousing and storage of the goods or product in the supply chain. The final product is therefore a culmination of a whole range of tasks and processes which includes transport and logistics, production and manufacturing processes, warehousing and storage.

Supply chain management (SCM) is a core part of organizational effectiveness in order to achieve goals characterizes efficiency. Globalization and international agreement led Toyota to develop it is SCM process to increase outsourcing supply raw materials from foreign market that are low cost and high quality.

Accordance of the “Guiding Principles” has summarized the philosophy and the vision of Toyota’s wants to be in term of commitment to contribute to harmonious and sustainable development of society and the earth through its automobiles. Mission of Toyota is to manufacture cars that meet the customer needs in constantly. (http://www.toyota.co.jp/en/ir/library/annual/pdf/2007/ar07_e.pdf -19th December2007) The vision & Mission that settled had created good reputation image of Toyota as environmental friendly, technological innovation and social contribution automobile company which Toyota has created. Therefore, the consumers of automobile market are concerning about green environments and social responsibility issues will encourage choosing Toyota as one of their main vehicles option.

"Toyota Motor Corporation is a company devoted to enhancing the quality of life for people around the world by providing useful and appealing products" (Toyota Motor Corporation, 1994).

The Purchasing at Honda has the option of adding a second source of supply and ultimately for disqualifying suppliers from additional business with Honda.

In January 2010, some of the Toyota, Lexus and Pontiac vehicles were recalled because of problems about defective accelerator pedals made from CTS Corporation, a leading automotive supplier in North America, Europe, and Asia. The problems are related to the friction inside the moving part of the units that controls the pedal to return as soon as the pressure on the pedal is released. This friction should be designed to consistently corresponsive to the pressure on the pedal, in both pressed and released positions, so that the drivers can smoothly control the speed of the vehicles. It is thought that the condensation caused by cold weather is one of the reasons that lead to an increase of the friction. Another reason is related to

The Supply Chain graph - source Heizer, J. and Render, B. 2004 p 414The supply chain includes all the interactions between suppliers, manufacturers, distributors and customers. The chain includes transportation, scheduling information, cash and credit transfers, ideas, designs, and material transfers.

The early twentieth century was dominated with several multibillion companies. Some of these companies included the three major motor companies often named as the (Big 3). These were the General Motor, Chrysler and Ford. Toyota came up and replaced Chrysler and became the world number two after knocking out Ford in the year 2003. Since the year 2008, Toyota has remained on the world charts as the largest automaker in the world.

A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, materials and components into a finished product that is delivered to the end customer. In sophisticated supply chain systems, used products may re-enter the supply chain at any point where residual value is recyclable.