Managing Strategic Resources and Operations Supply Chain Management

Running Head: SUPPLY CHAIN MANAGEMENT
0
Managing Strategic
Resources and
Operations
Supply Chain Management
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SUPPLY CHAIN MANAGEMENT 1
Introduction
In today’s competitive business world, the companies keep on running with the help
of knowledge, skill, and capability of strategic resources management and operation
management where organisations need to compete in the common business environment
(Habib & Bao, 2019). Though, there are factors that impact the business operation as per the
environment of the business where the company can utilize resources at its best. This is
because of company doing better and having a competitive advantage in the market where
maximum utilization is done by waste reduction and cost that is possible through rate of
operation and increasing efficiency. Further, there is availability of various tools to analyse
the company’s performance by adopting strategies (Carter, Kosmol, & Kaufmann, 2017). In
this report, the global company’s logistics, supply chain channels and sustainability is
identified and analysed through value chain selling to the end user that is a customer. The
discussion is going to cover linkages associated with the theory of the company taken as an
example that is ‘Toyota’.
Overview of the company
In Japanese auto industry, Toyota is the largest automaker across the globe named
fully as Toyota Motor Corporation (TM) established in 1937 as an innovator by volume
based in Japan. It is a global company selling and manufacturing its spare parts and vehicles
along with business operations worldwide. There are 53 manufacturing companies overseas
considering 28 countries and regions. Also, selling of vehicles is done in over 170 countries
and regions. Further, the company is listed in various Japanese stock exchanges as well
(Parashar, 2016). The production of Toyota in its factories was gaining competitiveness and
better operations along with facilities, technology and increased efficiency. Toyota has
gained reputation due to its reliable, low-cost, and fuel-efficient vehicles. Thus, the company
is evolving in mobilization with global performance in markets, contribution in communities,
ever-better cars creation, and new technologies development (Toyota, 2020).
Supply Chain Management
In recent times, enabling companies to source necessary materials is possible through
supply chain management for creating product or service along with delivering them to

SUPPLY CHAIN MANAGEMENT 2
customers. The activity and process of supply chain management (SCM) is to source the raw
components or materials for the requirement of creating product or service along with the
goal of improving the performance in supply chain. The information that is on time and
accurate in relation to supply chain allows manufacturers to ship and make the selling of
products. Moreover, the effectiveness of supply chain systems helps in both retailers and
manufactures in excess inventory reduction. Also, it decreases the insuring, producing,
shipping cost, and product storing that is not able to get sold (Perkins & Wailgum, 2017). The
delivery of products or services is termed as logistics involving scheduling delivery, customer
orders, dispatching loads, receiving payments, and customer invoice coordination.
In business, Toyota follows a way of “making things” also termed as “lean
manufacturing system” for improving the company’s productivity and quality under TPS
(Toyota Production System). The objective of the company is to deliver the vehicles made
based on order by customers in the most efficient and quickest way. There is money, product
and information flow in supply chain where the flow of Toyota is starting from suppliers,
inbound logistics, factory, outbound logistics and ending at dealers (Shimbun, 2019). Further,
the flow of information in the company follows value stream mapping helps in tracking it and
material across the product development. Firstly, it begins from process level and ends at
across companies along with single plant and multiple plants in between. After that, the
money flow of Toyota goes from stockholders to controller along with owners, presidents,
and treasurer in between as well. SCM involves activities in relation to management and
planning that are sourcing and procurement, conversion, and logistics management along
with teamwork and coordination with channel partners (Marion, 2018).
Toyota’s suppliers are the third party where some parts such as tires, leather seats and
steering wheel are handed over to local companies. The companies help further by working
together for product development as a team. This helps the company to compensate workload
along with cooperation greatly and suppliers working as a team encouragement. Moreover,
Toyota focuses on relationship for long-term altogether with teamwork and corporation. The
company through this get the benefit of cost reduction and time saving at some way. Also,
production enables maintaining consistent volume for suppliers in business (Marchese, 2014).
First step towards performing the activity of supply chain is procurement in Toyota where as
an integral elements that are suppliers work as the company’s partners. They ask suppliers as
per the customer’s requirements focusing on mutual improvements based on training.
Secondly, manufacturing is where TPS focuses on shortest lead time, best quality, high