Material Management and Supply Chain Structure of Toyota

Running head: SUPPLY CHAIN MANAGEMENT
Supply chain management
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1SUPPLY CHAIN MANAGEMENT
Executive summary
The aim of this report is to discuss about the approach of material management of Toyota along
with the role of management of their intermediaries. In addition, the utility of lean and agile
principles in their supply chain process is also discussed. The role and importance of
relationships in material management, logistics and reverse logistics is also critically analyzed in
this report. It is concluded that Toyota can gain number of advantages from the initiation of the
green supply chain process and reverse logistics.

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Table of Contents
Introduction......................................................................................................................................3
Material management of Toyota......................................................................................................4
Supply chain structure of Toyota.....................................................................................................5
Advantages of lean and agile practices............................................................................................6
Role of relationships in material management................................................................................7
Role of relationship in reverse logistics...........................................................................................8
Opportunities from green supply chain process..............................................................................8
Conclusion.....................................................................................................................................10
Reference.......................................................................................................................................11

3SUPPLY CHAIN MANAGEMENT
Introduction
The current business scenario is much competitive in nature and each of the process and
practices of the contemporary business organization should be effective and efficient enough.
This will enable them to stay ahead in the competition and generating the maximum value
proposition from their internal process. Among all these business practices, supply chain
management is one of the key measures as it determines the effectiveness and efficiency of the
organizations in sourcing of raw materials and gaining the maximum value from them
(Brandenburg et al. 2014). This process is mostly relevant in the manufacturing sector as
assembling of different materials is evident in the case of manufacturing sector. Moreover, it
should also be noted that effective supply chain management will also help the business
organizations in meeting the requirements of their customers due to the reason that the
satisfaction level of the customers is aligned with that of the efficiency of the supply chain
process.
Toyota is the leading car brand in the world with having their presence across the world
and having number of manufacturing units in different countries. It should also be noted that
Toyota is not manufacturing all of the components rather they are having number of suppliers
(Schaltegger and Burritt 2014). Thus, the role of supply chain management process is important
for Toyota in maintaining their internal effectiveness. In accordance to this situation, there are
different supply chain concepts being initiated by them.
This report will discuss about the material management approach of Toyota along with
discussion on the role of relationships in managing the supply chain and logistic process. In