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Toyota Supply Chain

Technology advancements have fueled the global economy and impacted the ways in which businesses design their supply chains. One cup of Starbucks coffee is comprised of materials from various countries and represents numerous supplier relationships. In the age of the global village, designing supply chains is similar to conducting a massive orchestra' achieving harmony requires strategy, planning, and impeccable execution. Think about an organization's supply chain with which you are familiar or have worked with in the past in order to discuss the following:

1. Describe the organization's supply chain. List the key components and include the key stakeholders, vendors, technologies, and if applicable, modes of transportation that are involved.

2 How might you redesign the company's supply chain for maximum effectiveness and harmony? Outline the key inputs and outputs of your supply chain and distinguish the suppliers that merit partnership status. Justify their status with specific reasons.

3. Will your design involve only domestic logistics or will you need to consider global operations in your strategy? If applicable, how will the need for global operations affect your strategy and partner base?

4. How would you gain buy-in for your design? Which company executives, divisions, departments, and/or co-workers would you approach to help implement your design?

5. If you had to present your redesign to a group of key stakeholders, how would you organize your presentation and what techniques for presenting would you employ? What strategies would you implement to receive and address critical feedback?

Solution Preview

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Toyota Supply Chain
1. Toyota is well known for eliminating non value added activities from its operations. The supply chain at Toyota boasts of strong relationships with suppliers which allow the company to use innovations well across all functions. Through dependable suppliers and being in close proximity to factories for procuring raw material, Toyota has been able to reduce its focus on those activities of supply chain which are not value adding. The dominant power relationship exerted by Toyota enabled creation of demand based pull system and JIT system. It has effective control over quality and cost as a virtue of which Toyota is able to pass more value to customers than its competitors. Toyota uses lean production which combines operations and strategy and focuses on delivering highest level of quality to the customer. There are programs to share skills and knowledge with local suppliers to ensure that there is long term sustainability.
Logistics is an important part of supply chain. Toyota often makes smaller purchases from local businesses set up by local women. By procuring locally, Toyota reduces transportation costs. The lean supply chain ensures that raw material from suppliers get transported in efficient and timely manner. It utilizes milk route in which there are small clusters into which suppliers are organized. Parts procured from them are delivered to regional crossdock from where parts are delivered to one ...

Solution Summary

Word document attached describes the supply chain of Toyota and changes to the design for global inclusion.

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