Global Logistics for Toyota Kirloskar Motor Pvt Ltd

This paper presents a brief information about the logistics and transportation system of Toyota Kirloskar motor Pvt Ltd, company that provides ample of automobile products to the customers across the globe. The paper further outlines the business activities, operations, customers, products and organizational structure of TKAP. Apart from this, global transportation policies, regulations and mode of transportation also have been presented in the report briefly.

Running head: Global logistics
Global logistics
2018

Global logistics
Table of Contents
Introduction.................................................................................................................................................3
Background of the company........................................................................................................................3
Business, products, and major customers................................................................................................3
Employees, management style and organizational structure..................................................................4
Financial position, number and types of facilities....................................................................................5
Global transportation and policy..................................................................................................................5
International transportation modes..............................................................................................................6
Transportation risk management.................................................................................................................7
Improvement...............................................................................................................................................9
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11
2

Global logistics
Introduction
The aim of this paper is to present a brief information about the logistics and
transportation system of Toyota Kirloskar motor Pvt Ltd, company that provides ample of
automobile products to the customers across the globe. The paper further outlines the business
activities, operations, customers, products and organizational structure of TKAP. Apart from
this, global transportation policies, regulations and mode of transportation also have been
presented in the report briefly. The paper discusses how various transportation modes help
TKAP to run the business successfully with minimizing the prices. Current policies and system
of TKAP also are drawn in the paper. At the end, some suggestions have been given to reduce
and handle the issues related to transportation.
Background of the company
Toyota Kirloskar motor Pvt Ltd, is an auto parts manufacturing corporation based at Bidadi near
Bangalore India which is formed in 2002 (TKAP, 2018). The company is a joint venture
amongst Aisin seiki Co.Ltd, Japan, Toyota motor corporation, Japan and Kirloskar systems
limited, India (TKAP, 2018).
Business, products, and major customers
The company provides innovative automobile products to the customers across the globe.
The company is well known for the manufacturer and sales of Toyota cars in India. The main
mission of the company is to enrich the lives of stakeholders with eco-friendly and safe products
to the customers around the globe. The company wants to be the most significant and unique
admire manufacturer of ever better units globally. The company manufactures and produces
transmission, engines and axles and shafts and supplies these products to Toyota companies
globally and domestically. The company is continuously striving to delight unique and dynamic
customers with outstanding quality of products and services. It is further believed that future lies
in the hands of valued customers globally. The company exports its products in various countries
3

Global logistics
such as Malaysia, Thailand, Indonesia, South Africa and Latin America. All these are covered in
the customer list of TKAP.
Employees, management style and organizational structure
There are approx 501 to 1000 workers working in the company to render products to the
customers around the globe (Glassdoor, 2018). It has been investigated that TKAP uses
innovative and unique management style to grow business and uplift profitability in the
international market. It has possessed a strong and effective leadership team to motivate and
guide the majority of employees for performing roles and responsibilities effectively. The
organization has phenomenal professional and technical experts in auto parts and TKAP in
today’s globalization world shows this global quality in its products and facilities. It is analyzed
from the various studies that leaders at TKAP use democratic leadership style to make unique
decisions in the competitive market. By using this leadership style, the leaders are trying to
motivate the subordinates towards the achievement of goals and objectives.
It is stated that TKAP follows strong and dynamic structure to attract majority of
customers in all over the world. It is liable to report the Toyota Company which is located in
Japan. The decision making process is done by Toyota Company in Japan. In this way, global
hierarchy system is followed by TKAP while initiating the business globally. It is portrayed that
TKAP has approx 8 geographic divisions that are Europe, China, Africa, North America, China,
Japan, Middle East, Latin America and Caribbean. All the divisions are responsible to report to
the headquarters. The organizational chart of TKAP has been drawn below.
4

Global logistics
Financial position, number and types of facilities
The total revenue of TKAP has been calculated approx 29.4 trillion Japanese yen in the
2018. There are three product division of the company including engines, transmission and axles
that are accountable to provide attractive automobile and vehicle parts to the customers across
the globe. The company provides innovative facilities to Toyota, Japan by rendering various
products such as transmission, engines and axles to the customers across the globe.
Global transportation and policy
The presence of an effective and dynamic logistics related infrastructure and unique
logistics management are needed for the company to cope up with rivals and to gain competitive
benefits internationally. It is stated that transport policy deals and handles the development and
expansion of a set of proposition and constructs that are established to attain specific objectives
relating to economic, environmental development, social and the transport system (Bennett &
Raab, 2017). The motive of the transportation policy is to intervene and communicate for
addressing security, safety and environmental harms and generate economic benefits in the
international market. It is noted that the ministry, as the minister’s principal policy adviser is
responsible for the equality of policy development and expansion of legislations including
5

Global logistics
consequential regulations and transport rules. Transport agencies are liable for the operation and
activities of transport legislation and for the implementation of transport rules to ensure effective
and unique completion. It is significant for TKAP to follow all these rules and regulations related
to transportation in the global market (Swinburn, Sacks, Hall, McPherson, Finegood, Moodie, &
Gortmaker, 2011).
The purpose of the air transport strategy and regulation is to minimize the costs in
performing its economic regulatory activities and operations. The international civil aviation
organization can resolve the issues and challenges of air transportation further it protects the
rights and interests of the stakeholders globally. The global transportation department is offering
practical solutions to address and resolve the emerging regulatory challenges of TKAP Company
(ICAO, 2018). The UN economic commission for Europe assists and guides the process and
procedure of simplifying and harmonizing border crossing process for the various modes of
Inland transport and renders an overview and information of international UNECE transport
agreements on its website (World bank group, 2018). While exporting the automobile products
or parts, the company needs to focus on the economic regulations. The most of the economic
regulations include European commission, ILO, United national, Bank for international
settlements, world trade organization and IMF. It shall be analyzed from the various studies that
antitrust laws are responsible to monitor and supervise on the transportation activities and
operations (Wensveen, 2018).
International transportation modes
The different international transportation mode has been discussed below.
Air freight: It is one of the fastest and growing ways to ship cargo but it is very expensive. To
attain the demand and need for growth, the world air cargo traffic is estimated to grow and
survive an average 4.2% per year. Air freight is a complex mode of transport. It serves global
markets and supply chains that fulfill the demands and needs of the customers. Air transportation
helps in providing various benefits to the customers across the globe. There is a less need of
documentation and formalities and it further enhances the level of security for cargo. Air
transportation is one of the leading and fastest way to export the products globally. TKAP
Company uses this mode to supply various automobile parts or products to the customers across
6

Global logistics
the globe. This method also saves the time and money of TKAP Company (SteadieSeifi,
Dellaert, Nuijten, Van Woensel & Raoufi, 2014).
Road transportation: It is significant method that can be used by the company while exporting
the products in the global market. Road freight is one of the significant and unique modes of
transportation. It is often used in various countries such as Africa, North America and Europe.
The single customs document process renders a seamless movement of products and services
even around various countries and states. It shall be noted that road freight renders various
benefits to the customers in the international market (Mula, Peidro, Díaz-Madroñero & Vicens,
2010). By implementing this mode, TKAP can improve productivity and save cost. Quick
delivery can be possible with the help of road transportation. By using this method, the firm can
track and trace of truck and cargo effectively and efficiently. Road transport is one of the unique
eco-friendly transport systems that provide various benefits to the csutomers. However, the truck
transport is limited and further it is also affected by conditions and traffic (Akarca, 2013).
Rail transportation: Rail transportation is effective mode of exporting the automobile and
vehicle parts or products across the globe. TKAP can use this mode make easy the transportation
process globally (Freighthub, 2018).
Multimodal transportation: One of the vital models that can be used by the companies is
multimode option. It is a mixture of various modes of shipping such as rail, road, and sea which
permits the customers to price successfully run and handle the shipments from begin to end
ensuring best care and efficiently every step and actions of the way. One of the crucial examples
is the cross district rail network joint with truck (Schuessler & Axhausen, 2009). Sea air is
significant and fundamental example of multimodal transport system. This service is measured
inexpensive mode than air and faster than sea service. Sea air transportation mode is eco-friendly
because it saves time and money of the company. Multimodal transportation mode helps in
reducing the distance for the products and goods between the consumers and manufacturer. The
products or cargo can be moved to various part of the global world using or implementing
various modes of transport. Along with that, customers can manage and deal with one enterprise
to handle and control all the modes of transport and it is one of the cost effective delivery options
(Freighthub, 2018).
7

Global logistics
Transportation risk management
It is analyzed that transportation risk management is essential to overcome the
competitors and expand the business activities sand operations successfully. Without measuring
and analyzing these risks and challenges, TKAP cannot cope up with rivals in the competitive
market (Monden, 2011). Effective and dynamic policies and rules shall be made to handle and
manage transportation risk globally. Risk management is significant and crucial in transportation
business practices.
Current policy: It has been examined that TKAP Company follows intelligent transport system
to conduct the business activities and functions smoothly in the global market. The company
maintains good and strong relationship with customers, suppliers and partners to attain
profitability and revenue globally (Urry, 2016). Environment protection and road safety
standards and rules are followed by TKAP to protect the rights and value of the partners and
shareholders internationally. The firm provides continuous training to the workers to improve
and enhance the transportation system at the workplace. The training program called TLEP is
conducted by the firm to enhance and improve the driving skills of the drivers. Various
improvements have been done in marine transportation by the company to be a leader in the
automobile sector (TLKI, 2018).
Existing system: Toyota has shown a new safety technology and resource that open lines of
communication between road infrastructure and vehicles. The company uses intelligent
transportation system in today’s competitive world (Burns, 2013). The purpose of Toyota’s
intelligent transportation system is to reduce and limit the traffic incidents when poor and
ineffective visibility or error is an element (Cho, 2012). The system is now available on three of
its innovative and unique Japanese models that help to run the business process effectively. It has
been found that Toyota is obtaining raw material for their automobile and vehicle products in the
competitive market for fulfilling the expectations and needs of the customers (Tseng, Wu & Liu,
2013). Using and implementing vehicle to vehicle and vehicle to infrastructure communication
and collaboration via a 760MHz radio frequency, a car that comes from 100 meters of a
transmitter would get a symbol on the equipments display denoting data transfer. Moreover,
TKAP promises the systems would become more widespread and cut down on the traffic
fatalities which take place at busy junctions that recently adjust approx 45% of traffic fatalities in
8

Global logistics
the country (Button, 2010). In Japan, the ITS connect system costs around 25000 yen and is
being rolled out to internal automobile or vehicle like the prius soon. The transportation sector in
India has become an effective and significant area of priority (Branman, 2018). It has been
evaluated that Toyota Company uses Just-in-time production system to automobile products in
the global market.
(Source: https://www.lean.org/lexicon/toyota-production-system)
Improvement
It has been found that transportation risk can be measured and improved by implementing
the innovative strategies and policies globally. The company needs to set the effective and
unique transportation agency to keep an eye on the transportation and logistics internationally.
Transportation agencies set strategic objectives and goals to manage and eliminate the risks of
the transportation. Internal and external risks events can be identified and measured by the
company to optimize the investment decisions effectively (Branman, 2018). The company
further should focus on the external market to analyze and evaluate the challenges and risks of
the market. It will help to improve the transportation system in the global market. TKAP further
must set up a SMS notification system or process for all drivers to improve the transportation
system efficiently and effectively. It shall be portrayed that the firm should use advanced and
innovative technologies to eliminate and avert the challenges and issues related to transportation
9

Global logistics
in the Indian market. Electronic and hybrid vehicles shall be used to make easy the transportation
system in the competitive market. It is analyzed from the various studies that TKAP further
should focus on the resources and infrastructure to decrease the transportation concerns and
challenges internationally. The firm must make agreements with other companies to take various
competitive benefits.
They should make innovative strategies and policies to keep an eye on the process,
policies and strategies of the competitors. It will help the company to achieve desired goals and
objectives. Effective and unique logistics and supply chain management strategy shall be
implemented by the firm to provide products to the customers around the world. In this way, the
risks and challenges related to transportation can be minimized to a large extent. Health and
safety standards and norms shall be kept in mind by the company while operating and
functioning the activities. Innovative opportunities shall be provided to potential and talent staff
so that they can give full contribution towards the attainment of goals and objectives. Emission
from vehicles must be reduced while conducting the business globally. It shall be analyzed that
TKAP must focus on the mode of transportation to select appropriate transportation mode
effectively. TKAP shall also develop and improve a contingency plan for improving and
ensuring the effective and adequate transportation system within the organization (Toyota,
2018). The firm should appoint talented and capable people to handle the transportation system
in the organization.
Conclusion
From the above study, it is concluded that Toyota Kirloskar motor Pvt Ltd is a
automobile company that provides automobile parts and products to the key target audience in
the world. It is analyzed from the above paper that Toyota uses innovative production system to
manufacture products successfully and effectively. Just in time production system is designed by
TKAP to reduce the negative impact of inventory and transportation system. In today’s modern
world, the company is flourishing and growing the business operations globally by exercising
dynamic and innovative transportation and production system. It has been portrayed that TKAP
follows global transportation policies and regulations to survive and grow business in the
international market.
10

Global logistics
11

Global logistics
References
Akarca.O.,(2013). Basic modes of international transportation [Online], Retrieved from
https://www.morethanshipping.com/basic-modes-of-international-transportation/
Bennett, C. J., & Raab, C. D. (2017). The governance of privacy: Policy instruments in global
perspective. Routledge.
Branman.M.,(2018). Toyota is the first automaker to dabble with vehicle to infrastructure
connectivity [Online], https://www.digitaltrends.com/cars/toyota-intelligent-
transportation-system-specs-news/
Burns, L. D. (2013). Sustainable mobility: a vision of our transport future. Nature, 497(7448),
181.
Button, K. (2010). Transport economics. Edward Elgar Publishing.
Cho.R.,(2012). The future of transportation: More safety, savings and sustainability [Online],
Retrieved https://blogs.ei.columbia.edu/2012/11/16/the-future-of-transportation-more-
safety-savings-and-sustainability/
Freighthub.,(2018). Modes of transportation explained: which type of cargo and freight
transportation is the best[Online], Retrieved from https://freighthub.com/en/blog/modes-
transportation-explained-best/
Glassdoor.,(2018). Toyota Kirloskar[Online], Retrieved from
https://www.glassdoor.co.in/Overview/Working-at-Toyota-Kirloskar-
EI_IE512068.11,27.htm
ICAO.,(2018). Economic development [Online], Retrieved from
https://www.icao.int/sustainability/pages/economic-policy.aspx
Monden, Y. (2011). Toyota production system: an integrated approach to just-in-time.
Productivity Press.
12

Global logistics
Mula, J., Peidro, D., Díaz-Madroñero, M., & Vicens, E. (2010). Mathematical programming
models for supply chain production and transport planning. European Journal of
Operational Research, 204(3), 377-390.
Schuessler, N., & Axhausen, K. (2009). Processing raw data from global positioning systems
without additional information. Transportation Research Record: Journal of the
Transportation Research Board, (2105), 28-36.
SteadieSeifi, M., Dellaert, N. P., Nuijten, W., Van Woensel, T., & Raoufi, R. (2014). Multimodal
freight transportation planning: A literature review. European journal of operational
research, 233(1), 1-15.
Swinburn, B. A., Sacks, G., Hall, K. D., McPherson, K., Finegood, D. T., Moodie, M. L., &
Gortmaker, S. L. (2011). The global obesity pandemic: shaped by global drivers and local
environments. The Lancet, 378(9793), 804-814.
TKAP.,(2018). About us[Online], Retrieved from https://www.tkap.com/
TLKI.,(2018). Toyota transportation Co.,Ltd. [Online], Retrieved from
http://www.tlki.in/TYC.html
Toyota.,(2018). Intelligent transport systems[Online], Retrieved from https://www.toyota-
global.com/innovation/intelligent_transport_systems/
Tseng, H. K., Wu, J. S., & Liu, X. (2013). Affordability of electric vehicles for a sustainable
transport system: An economic and environmental analysis. Energy policy, 61, 441-447.
Urry, J. (2016). Mobilities: new perspectives on transport and society. Routledge.
Wensveen, J. (2018). Air transportation: A management perspective. Routledge.
World bank group.,(2018). Transport policies, law, and international agreements [Online],
Retrieved from
https://ppp.worldbank.org/public-private-partnership/sector/transportation/laws-
agreements-conventions
13