Logistics & Supply Chain Management of Toyota Motor Corporation

Running Head: Logistics and Supply chain Management
Toyota Motor Corporation
Logistics and Supply chain Management

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Table of Contents
1. Introduction........................................................................................................................................................ 2
2. Overview of the company............................................................................................................................. 3
3. Analysis................................................................................................................................................................. 4
3.1 Managing Quality..................................................................................................................................... 5
3.2 Managing people in operation and supply chains.....................................................................6
3.3 Triple bottom line.................................................................................................................................... 7
4. Conclusion and Recommendations...........................................................................................................8
References.................................................................................................................................................................... 9

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1. Introduction
Supply chain and logistics management are crucial aspects of an organization. It includes
management of inputs, raw materials, suppliers and all other factors which are engaged in
the function of producing finished goods. In this report, supply chain and logistics
management of Toyota Corporation will be discussed and it has been evaluated that the
supply chain management of Toyota Motor Corporation is considered as the vital element
of organizational operation’s strategy. Toyota's supply chain and logistics management
strategy are truly based on the Toyota Production System (TPS) (Dudovskiy, 2012). This
was developed by Shigeo Shingo and Taiichi Ohno in 1940. Under the TPS system, the
primary focus has been imposed on the principle of lean manufacturing through which
their logistics and supply chain management is considered as one of the best systems
across the globe. In relation to this, various companies from different parts of the world
have started following the supply chain management system of Toyota Corporation with
the objective of gaining positive outcomes.
Figure1: Company’s Logo

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This report will include discussion in order to understand operations, logistics and supply
chain management of Toyota. In relation to this, the first phase of the report will focus over
the organizational background followed by describing some of the areas of the
organizational supply chain and logistics management to analyse effectiveness and
suitability according to the dynamic business environment. While the second phase of the
report will focus on originating available solutions in order to meet with the challenges
identified in the first phase of the report.
2. Overview of the company
Toyota Motor Corporation is the multinational automotive corporation. The company's
headquarters is situated in Toyota, Aichi, Japan. Toyota Corporation was founded in 1937
and since then to the September 2018, organization has acquired the sixth position as the
largest companies in terms of revenue (Toyota Motor Corporation, 2018a). As per the last
year's record, the organization was standing on the second position in the list of largest
automotive manufacturers in the world and it has been evaluated that soon, the company
will become the largest automotive manufacturer across the world. Apart from these
achievements, the organization has got the title of manufacturing more than 10 million
vehicles in 2012 and since then, the organization has continuously enhanced its production
capacity. In 2014, the organization stands on the second position as the listed company in
Japan in terms of market capitalisation and from then, company has reached very close to
the number one position (Ludwig, 2013). Along with this, Toyota Motor Corporation is also
known as the market leader of producing hybrid electric vehicles in the world. In relation
to this, the organization has organised various programs to spread awareness amongst the
people for using hybrid vehicles in order to eliminate the emission which generates from
the usage of fuels based vehicles.
The organization is known for producing all variants of the vehicles and in order to manage
their huge functionalities, Toyota Production System acts as the most effective tool. This
tool not only helps the organization to boost up its productivity but it also helps in
managing all the organizational functionalities to gain positive results. The main element of
their supply chain and logistics management strategy is Just-in-Time Production (JIT)