The Challenge of Logistics and Supply Chain in the UK: A Study on Toyota's Just-in-Time Implementation

This research project focuses on the challenge of logistics and supply chain management in the UK, specifically studying Toyota's implementation of the Just-in-Time method. The study explores the impact of Just-in-Time on production efficiency, supply chain improvement, and timely delivery of goods. It also examines the benefits and challenges associated with this approach. The research aims to identify the importance of Just-in-Time in reducing logistic and supply chain challenges in the workplace.

Research Project
(The Challenge of Logistics
and Supply Chain in UK)
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ACKNOWLEDGEMENTS
I want to show my gratitude and express my thanks to professor as well my other
lecturers who have given their precious time for assisting me in doing my research in a
systematic manner within limited time. I am thankful to my teachers as they have provided me
with an opportunity to conduct research on this specific topic.
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ABSTRACT
In this particular research topic usage of Just in time has been researched in logistics and
supply chain management of Toyota. JIT has helped company to increase their production
process, improve supply chain and delivery of goods on time the customers. It is the method
which is very useful in the companies who are operating in developed countries because it has
assisted in improving the efficiency in production. In this research where secondary sources are
used to generate the information regarding the JIT in companies. In this various benefits are
defined related to JIT and the various challenges which can negatively impact the operation of
company.
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Table of Contents
ACKNOWLEDGEMENTS.............................................................................................................2
ABSTRACT.....................................................................................................................................3
INTRODUCTION...........................................................................................................................5
LITERATURE REVIEW................................................................................................................8
What is Just-in-Time and its impact caused on logistics and supply chain of Toyota?..............8
What are the changes occurred before and after Just-in-Time implementation within Toyota? 9
What are the ways through Toyota adapts with this new system?............................................10
What are the implications Toyota had at the beginning of the Just-in-Time?..........................11
RESEARCH METHODOLOGY...................................................................................................13
RESULTS AND FINDINGS.........................................................................................................17
Discussion .....................................................................................................................................31
CONCLUSION AND RECOMMENDATIONS .........................................................................32
Conclusion ................................................................................................................................32
Recommendations.....................................................................................................................32
REFERENCES..............................................................................................................................34
APPENDIX ...................................................................................................................................36
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INTRODUCTION
Topic of this dissertation is to identify the challenge of logistic and Supply chain in UK”.
Logistics refers to the strategic plan of moving people and materials. Logistics and supply chain
management is basically about the providing services of delivering and producing final goods
and services, from the supplier of supplier to the customer of customer. Management of supply
chain and logistics management involves managing demand and supply, sourcing and procuring
some parts and raw materials, assembling and manufacturing, tracking and warehousing of
inventory, taking orders, entry of orders and management of orders, distribution over every
channel, logistics and delivery to the consumer (Bak, Jordan and Midgley, 2019).
Overview of company
The chosen organisation for present research is Toyota. Toyota is an organisation which
is responsible for activities like marketing, sales, process after sales and relations of customers
for Toyota in UK. They have the duty and responsibility of doing tasks like marketing, sales,
issues related to customer relation and after sales nationwide. The headquarters of Toyota is
situated in Great Burgh, Surrey founded in 1965. The company is employing people about 400
people and basically they are auto mobile industry.
Research Aim and Objectives
Research Aim
“To identify the importance of Just in time in reducing the challenges of logistic and
supply chain management at workplace.” A study on Toyota
Research Objectives
 To identify Just in time and its impact caused on logistics and supply chain of Toyota.
 To understand the changes occurred before and after Just-in-Time implementation within
Toyota.
 To determine the ways through Toyota adapts with this new system.
 To ascertain the implications Toyota had at the beginning of the Just-in-Time.
Research Questions
 What is Just-in-Time and its impact caused on logistics and supply chain of Toyota?
 What are the changes occurred before and after Just-in-Time implementation within
Toyota?
 What are the ways through Toyota adapts with this new system?
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 What are the implications Toyota had at the beginning of the Just-in-Time?
Research Hypotheses
 What are the benefits Toyota had with the implementation of the Just-in-Time?
 If the JIT was not implemented, how Toyota would be operating nowadays, what are the
implications that could cause to the car factory.
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LITERATURE REVIEW
Literature review introduces to the systematic process of gathering secondary information
from about the topic. There are various sources that are effective in gathering of secondary
information regarding the topic. These sources are books, articles, magazines, publication
research and many others. All these are important and useful sources because it helps in
gathering of secondary data within less time and in systematic manner. Main purpose of
literature review is to identify the research gap. Within an investigation, main gap is the
importance of Just in time in reducing the challenges of logistic and supply chain management at
workplace. In previous studies, there were lots of information available regarding the challenges
of logistic and supply chain but there were lack of information available regarding the
importance of Just-in-time in reduction of those challenges. Therefore, for overcoming these
challenges, research questions are used. These are:
What is Just-in-Time and its impact caused on logistics and supply chain of Toyota?
Just in Time
According to Othman and et. Al (2016), Just in Time is a technique which companies
use to increase their efficiency and reduce wastage by receiving goods which they required at the
time of manufacturing process. It means what manufacturer’s needs, when they need, the amount
that is required is only assessed during production system. The Organisation use this concept as
it is one of the Cost efficient method to hold stocks. With the help of this system inventory level
remain low as orders are produced for specific Consumers. Just in time tool prevents from over
production and reduce waiting time. Nowadays world is totally different and highlighted a great
development on logistics with the technology.
Impact caused on Logistics and supply chain of Toyota
Generally, this methodology is applied in manufacturing process but due to competition,
increase in electronic commerce and market globalisation the company adapts Just in Time
method in logistic and supply chain. The impact caused due to use of Just in time tool on logistic
and supply chain of Toyota is that it reduces the cost which is associated with process. The
material which is required are only considered in production process. It reduces storage cost,
maintenance cost and various other cost. The company produces vehicles when they received
orders from dealers. Toyota use Just in time method in its supply chain in such a way that only
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the equipment’s or material which are required while manufacturing vehicle must receive on
time. The transportation and manufacturing of materials works simultaneously which helps in
minimising the inventory of Company. Toyota uses this technique in its logistics to increase their
efficiency in several ways. The main objectives of using Just in Time method is to save the space
in warehouse and reducing unnecessary cost by organising the materials which is to be delivered
in individual workstation before it is required physically. The company put their efforts in
developing a production system which reduces time between initiation and Completion of
manufacturing or production process from managing materials to Completion of Vehicle. The
company puts emphasis on three points they are reducing waste movements, safety of employees
and trusting on workers by allotting them responsibility and authority so that they can know their
strength.
Supply chain management and logistics are considered interchangeably as some people
say there is no difference in between these two and consider supply chain management as new
logistics. Buying, handling of materials, transportation, control of inventory and management of
supply chain have constantly evolving which cause areas of functional to intersect with each
other. This kind of intersections blurs the definition of supply chain management and logistics
(Zijm and et. al, 2019). These two are the terms which have similarities but there are also
different meanings. Supply chain management is a process which connects many processes to
gain competitive advantages whereas logistics is defined as storing, moving, flowing of products,
information and services within the whole supply chain.
Supply chain management involves activities like collaboration among firms to make
connection with the customers, suppliers and partners to boost efficiency and produce value for
the final customer. Activities of supply chain management considered as decisions which are
strategic and form framework of operations through which logistics are performed. Supply chain
management is the efforts of various organisations who are working together as supply chain that
assists in managing the procuring raw materials and ensuring that final products give value.
Managers of supply chain are involved in various functions and organisations to ensure that a
final good reach to final customers as well as meet all the needs as well (Sweeney, Grant and
Mangan, 2018).
Logistics is defined as one part of the process of supply chain that make plans, executes
and controls the effective, efficient forward and reverses storage and flow of products, services
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and linked information between the starting point and the consumption point in respect of
meeting requirements of customer. Basically logistics involve activities like warehousing,
packaging, transportation, packaging and so on which position and move stock and acknowledge
its role in respect of supply chain synchronisation (Derwik, Hellström and Karlsson, 2016).
Just-in-Time is a system of inventory which is a strategy of management that assists in
aligning orders of raw materials from suppliers according to the schedules of production.
Organisations employ this particular strategy for increasing efficiency and decreasing wastes by
getting products only as they require them for the process of production which decreases costs of
inventory. This procedure is used for forecasting demand rightly. The system of Just-in-Time
inventory forms contrast with strategies of just in case, manufacturers have enough inventory to
have sufficient products to absorb demand of market maximum (Swanson and et. al, 2017).
What are the changes occurred before and after Just-in-Time implementation within Toyota?
According to Ledbetter (2018), just in time inventory management was invented by
Japanese based company Toyota. The executives of Toyota explained that they can work more
quickly and adapt changes in demands and trends if there is less inventory in warehouse which
are only required when it is needed at production process. Before implementing Just in time the
company was not so efficient while producing vehicles they were lacking in maintaining and
managing inventory even there is lot of wastage of materials in production process. The process
was inconvenient and they are facing challenges from American car manufacturing company.
The productivity of American cars was nine times better than Japanese Car. The pricing policy of
American and Japan car manufacturer company is different, US manufacturer car policy was to
charge on Cost price whereas due to low demand in Japan there were price resistance, they need
to reduce manufacturing to gain profit. The American car manufacturers make a model in batch
before switching to new model. In Japan there are small market which requires small quantities
while manufacturing. Toyota has decided to overcome these problems, they identified that the
main reason due to which they are lacking is wastage. The wastes in organisation are of
overproduction, waste by keeping irrelevant stock, waiting for parts, increase in transportation or
movement time, waste due to defective inventory. The Company decided to eliminate wastage
by applying Just in Time in which the production system will considered the items which are in
use or needed. They use this method in 1970's and it took 15 years to make their process perfect.
This strategy was implemented to increase competitive advantage when there was a time of
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World War second in Japan. Toyota place order to purchase production material when they
receive new orders from consumers. By implementing this method it reduces the amount of
capital and increase cash flows to run company efficiently and effectively. By implementing Just
in Time, Toyota face reduction in inventory cost as they need material which are required and
maintain the space in warehouse. The Company get more competitive in Market due to selling
vehicles at low cost with the help of this method they can invest more in growth which leads to
be competitive for long period of time.
What are the ways through Toyota adapts with this new system?
According to Stålberg (2018), the ways through which Toyota Adapts this new system
Just in time are as follows-
Draw a plan-
The company have planned for implementing Just in time method, they ensures that they
must follow the route through which they can gain competitive advantage and enhance their
growth.
Communicate new system with workers-
For implementing Just in time approach the company can leads to big change. It requires
a proper participation of employees for adapting this method. Toyota has started the
communication from beginning as there are problems associated with this method which can
reduce the inventory level and needs a trust in supply chain.
Data gathering-
It is important to collect the data of inventory. The company must know there inventory
level and the stock which is defective and useless for them. They gather information for
maintaining the stock and reducing wastage while production system.
Establish a plan for production-
A production plan is made by the company through which they can determine optimum
production and a required time to produce vehicles. The production plan includes an aspect in
which the guidelines are framed for reducing and maintaining wastage of stock during
production process.
Communication with supply chain-
For implementing just in time method in supply chain the company need to communicate
with them. Toyota ensures that their supplier must have an ability to fulfil the requirements.
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They have to establish a process through which problems can be resolve and reviewed that could
occurred due to this method.
Train staff-
The Company has prepared a well document and all the workers know this process. For
implementing process they have trained their employees so that they can use this method more
efficiently and effectively. Toyota has monitored the performance of Just in time method and
provide further training to staff where they are lacking while implementing.
These are the ways through which company has adapt this new system and become one
of the competitive company in Market. With the help of this method Toyota minimise the cost of
their vehicle by reducing manufacturing cost so that they can gain more profit in Japan market.
For implementing this methodology the company has changed the factory layout to reduce
transporting cost. Toyota introduced new concept Kanban for controlling the flow of materials in
Factory, this system was established in 1962.
What are the implications Toyota had at the beginning of the Just-in-Time?
According to Schlosser and et. al (2016), remain competitive in the market Toyota has
transformed their business to adopt new methodology of Just in time. The company has adopted
Just in time in manufacturing process to decrease the wastage by only producing the units which
are necessary in terms of quantity, time and helps in bringing the production rate according to the
demand of customers. The main aim of Just in time manufacturing is to develop a system
through which only the materials are produced that is required by employees. For achieving
these goals company have worked on four key elements for successful implementation of Just in
time manufacturing they are improving plant layout, zero defect in goods, reducing time and
developing flexible environment. For implementing just in time properly the organisation
improved their manufacturing flow line in factory. They also reduced the defects of goods at zero
level. By using this method company have keep the cost of their vehicle low due to lower
inventory cost, lower storage and low cost of maintaining warehouse. The lower inventory
means the company have to invest low in production process. By implementing this method
working capital investment get reduced which makes company more profitable and get better
result of ROI. The focus of Toyota is to focus on final product quality and achieve first time right
for all the vehicles. With the help of minimum inventory, organisation do less wastage which
results to achieve more profit and increase their growth. Toyota spends less money on raw
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materials as they purchase enough resources for making their ordered goods. This system helps
company to keep their production run short and look forward to get new product if needed.
Toyota can succeed in long run if they maintain production rate, no breakdown of machines and
high quality of people. The company needs a supplier who can deliver the materials promptly
and have ability to assemble machines which helps to maintain their vehicles.
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RESEARCH METHODOLOGY
Research methodology is defined as the process of examining and gathering information
related to the topic. In this researcher uses different techniques and procedures for investigator to
determine, select and analyse information related to the topic. This specific section of research
helps researcher in analysing the validity and reliability of whole research study (Clarke and
Visser, 2019). For this particular section researcher takes the help of research onion from
Saunders, it is a framework which is used for attaining the objectives successfully. This
framework has provided steps formed by Saunders with the goal of choosing apt research
methodology. There are different types of stages have included in this specific framework. All
the different types of methods are used for gathering useful data and researcher can analyse
gathered data in a great manner.
 Research Approach: It is the most significant research methodology used for analysing
collected data in a effective way. There are two types of research approach which are
effective in analysing data (Ragab and Arisha, 2018). The two approaches are known as:
inductive and deductive research approach. Inductive approach refers the process of
allowing research to develop theories. Basically it is used for analysing qualitative data
related to any field of the research. Deductive approach refers to the process of creating
hypotheses to examine the approach of research. It is used for gathering and analysing
quantitative information which assist in fulfilling the objectives of research. Accordance
to the requirement of present research, deductive approach is selected because it assists
in measuring and examining numeric information and facilitate in achieving each aim
and objective of research in a very less period of time. So deductive approach becomes
valuable for analysing information in quantitative information.
 Research Philosophy: Research philosophy is a broad topic and in this researcher
discusses the topic of study about the research. Basically it deals with the development,
nature and source of knowledge. It is a belief about the manner in which information
related to a phenomenon must be gathered, used and analysed. Addressing philosophy of
research in research mean being aware and making assumptions and beliefs. Every stage
of process of research is made on assumptions about the nature and sources of
knowledge. It is generally used to reflect the significant assumptions of author and these
specific assumptions are considered to act as the base of research strategy. There are two
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types of research philosophy which is called positivism and interpretivism. The selection
of type of research philosophy is effected by implications that are practical. The choice
of research philosophy is very important because whole research depends on it. For
conducting research in an effective way researcher selects positivism approach because it
assists in taking out and analysis of quantitative data which is best for completion of
investigation. This is most effective because it's main feature it is greatly structured
methodology having objective of identifying the hypothesis. It is given preference by
researcher due to its nature that helps in doing observations related to quantitative
information and analysis that is related to statistical terms. Interpretivism is not selected
by researcher because it collects data of qualitative terms which is not beneficial for the
current need of the research.
 Research Strategies: Research strategies refers to the type of methodology which
explains how researcher wants for executing and implementing work. Strategies are very
important for the researcher because it helps in collecting information in a very effective
and efficient way (Mishra and Alok, 2017). There are various types of research strategies
which are: experimental, action research, case study and survey. Survey is selected by
researcher for conducting research because it assists in collecting information from the
selected respondents. Survey is considered in this particular research because it helps in
getting opinions and views from selected participants. Survey is chosen by researcher
because it supports deductive approach of investigation. Various research and studies
related to business adopt this particular type of strategy. By the assistance of survey,
investigator gathers large amount of data from sizeable target participants. The gathered
information is examined and evaluated by the tool of descriptive analysis.
 Research Choice: It is very vital for completion of every type of research because it is a
framework essential for completing the research project on time. There are two types of
research choices: Qualitative and quantitative research choice. These both methods are
great in collecting accurate data related to the attaining objectives of research.
Qualitative and quantitative research choice both are important at their places but
researcher considers to select quantitative research choice because it helps in quantifying
the problem or issue by forming quantitative information which is used to change into
statistics which are very useful. It is basically used to measure numerical information
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and this information is gathered from face to face interview, survey that is online,
interviews conducted on telephone, observations which are systematic and many more.
The advantages related to quantitative research choice are it is very objective rather than
subjective like qualitative research choice. Qualitative research choice is not selected
because it does not support current research to meet its objectives. It explores the
information in a subjective manner which takes a lot of time and do not help in attaining
objectives.
 Data Collection: Data collection refers to the method which is used by researcher to
collect information from various sources which is significant for completing research on
time and achieve aim and objectives in a proper manner. There are two kinds of data
collection: primary and secondary data collection (Devi, 2017). Primary data collection
refers to the information which is generated by researcher through their hard work and
experience so that objectives of investigation can be fulfilled. The data which is
originated through primary source are known as raw information because it is generated
first and no one has used it before. Gathering primary data requires a lot of money so it is
expensive and it also needs other resources like investment and manpower. The data is
gathered from survey, focus group, case studies, physical testing, interview and many
more. Secondary data collection is used to gather information which already exists in
world and researcher uses to take out in-depth data. For secondary sources there are
many sources like books, journals, articles, websites and many more.
 Sampling: Sampling refers to a process which is very effective for selecting a small part
from the large population. Population is referred to the large number of people which are
being studied for the completion of research in a systematic way (Al Kilani, 2016). The
people belong from same organisation, city, country or town so for investigator it is
necessary to select a part from these whole population and the selected part act as
representatives for population. Because investigating whole population is practically not
possible and take a lot of time and other resources. There are two types of sampling
which is considered by researcher to complete research which are called as probability
and non-probability sampling. For the current investigation, probability sampling is
selected because in this each member of the group receives a chance of getting selected
as sample. Because in this almost members have same characteristics so chances of
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being selected increase. It selects persons on random basis by choosing specific choosing
criteria. For this researcher selects 20 managers as samples from Toyota because they
have great and required knowledge about the company which is necessary to attain the
objectives of research in an efficient manner.
 Time Horizon: Time horizon refers to the method which is essential for researcher to
complete the research on time. Generally, it is a time framework within that the research
is needs to complete. It is mostly required by investigator so that the objectives of
investigation can be established in effective manner. There are two kinds of time horizon
called Cross-sectional and longitudinal. Longitudinal time horizon refers to the gathering
of information again over a decided time whereas cross-sectional time horizon refers to
already time required for the gathering of data. As per the need of current research,
investigator selects cross-sectional because it assists in gathering information in an
effective way and style (Murshed and Zhang, 2016). This is best for researcher because
it assists in timely completion of all the predetermined objectives successfully. This
describes all the tasks and activities to be completed in minimum period of time.
 Research Instrument: Research instrument is referred as tool for obtaining, measuring
and analysing information from topic around the study of research. Researcher has to
make decision about the instrument they have to use according to the kind of study
researcher is going to conduct. The study related to quantitative data, the researcher use
questionnaire and for the study of qualitative data, researcher may select scale. By using
this instrument their efficiency is already established. The various instruments of
research for collecting data are: interview, questionnaire, observation, focus group
discussion, experiment and many more. As per the need of present research, investigator
chooses questionnaire because it assists in seeking opinions of selected respondents
about the specific study (Ragab and Arisha, 2018). The questionnaire has close-ended
questions to get information from researcher. Research is considered as good when the
questions are accurate for taking out the needed information for achieving the pre-
defined objectives. Interview is not selected because it is suited for taking out qualitative
information and in this there are more chances where interviewee manipulates answers
according to their requirement and need.
 Research ethics and limitations:
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 Research ethics: There are various principles of research ethics that are obtain
informed consent from potential research participants, minimise the risk of harm to
research participants, protecting confidentiality and anonymity of participants etc.
These are main principles that should be following within a dissertation with aim of
completing each activity of dissertation in ethical manner.
 Research limitations: There are some limitations of the dissertation such as lack of
time, lack of resources, information may be out of dated and many more. These are
major limitations that have direct impact on researcher.
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RESULTS AND FINDINGS
This is a significant part of dissertation because it facilitates investigator in evaluating of
quantitative data effectively. In order to analysis quantitative data, there will be requirement of
using research analytical technique i.e. Frequency distribution analysis. This is an effective
technique because it supports in evaluating of quantitative data within minimum time and in less
resources. Therefore, Frequency distribution table of present investigation is shown as below:
Q1 Do you know that logistics and supply chain management are
significant for the business of Toyota?
Frequency
a) Yes 18
b) No 2
Q2 Do the sector of logistics and supply chain management is
increasing as the work is increasing?
Frequency
a) Yes 12
b) No 8
Q3 What are the two systems that are used by Toyota for the supply
chain management and logistics sector?
Frequency
a) Kanban system 3
b) Just-in-Time 17
Q4 According to you, what are the benefits of Just-in-Time? Frequency
a) Production with efficiency in cost 4
b) Constant improvement in quality 5
c) Improving relationship of suppliers 3
d) Decrease in the time of manufacturing 8
Q5 What is the impact of Just-in-Time on logistics and supply chain
management of Toyota?
Frequency
a) Positive 8
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b) Negative 3
c) Neutral 9
Q6 How does Just-in-Time impacted Toyota? Frequency
a) Reduced the cost 4
b) Minimising inventory 5
c) Create space in warehouses 6
d) Reduced time between incorporation and completion 8
Q7 What are the main issues occurred with Just-in-Time in Toyota? Frequency
a) Supply shocks 6
b) Large orders 5
c) Demand shocks 9
Q8 What are the changes occurred after implementing Just-in-Time
within Toyota?
Frequency
a) Reduced waste 4
b) Improve competitive advantage 8
c) Increase cash flow 5
d) Control in production 3
Q9 What are the ways through Toyota adapts with the new system? Frequency
a) Communication with supply chain 7
b) Making systematic plan for production 4
c) Communicating system with workers 5
d) Gathering of information 4
Q10 What are the implications Toyota had at the beginning of Just-in-
Time?
Frequency
a) Producing units that are necessary 4
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b) Zero defects in goods 8
c) Developing environment that is flexible 8
Q11 What are the major challenges of logistics and supply chain
management faced by Toyota?
Frequency
a) Consumer demand drive 6
b) Complexity in supply chain 4
c) Increase the risk in supply chain 10
Q12 What are the effective ways that would be use by Toyota for
overcoming challenges associated with logistics and supply chain
management?
Frequency
a) Just-in-time 7
b) Optimise inventory and supply chain demand 6
c) Improving quality and speed in the supply chain 7
Question 1: Logistics and supply chain management are significant for the business of
Toyota
Q1 Do you know that logistics and supply chain management are
significant for the business of Toyota?
Frequency
a) Yes 18
b) No 2
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Interpretation: From the mentioned information, it is being observed that there are total
20 managers who are selected as respondents from Toyota, out of which 18 respondents
answered yes that logistics and supply chain management is significant for the business of
Toyota as it assists company to manage their inventory and supply their products from
warehouses to selling point, it reduces every type of confusion and chaos. And the rest 2
respondents answered no that logistics and supply management are not that significant as these
do not create any vast difference.
Question 2: Logistics and supply chain management is increasing as the operations of
Toyota is increasing
Q2 Do the sector of logistics and supply chain management is
increasing as the operations of Toyota is increasing?
Frequency
a) Yes 12
b) No 8
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Interpretation: By the assistance of provided data, it is being analysed that 12
participants said yes that the sector of supply chain and logistics management is increasing as the
operations of Toyota is increasing then their dependence on management of logistics and supply
chain management is also increasing because company has to manage their inventory as their
sales is increasing and they have to get products on right time from their suppliers. The rest 8
respondents said no that there is no great change in logistics and supply management due to
increase in the operations of Toyota because every activity is independent in Toyota.
Question 3: The two systems that are used by Toyota for the supply chain management and
logistics sector
Q3 What are the two systems that are used by Toyota for the supply
chain management and logistics sector?
Frequency
a) Kanban system 3
b) Just-in-Time 17
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Interpretation: As per the provided data it is understood that, 17 participants said that
Just-in-Time system is used by Toyota for supplying chain management and logistics sector
because it assists in reducing the requirement of excess materials from warehouse and it also
helps in synchronising the activities of company of different levels. The another 3 respondents
said that Kanban system is adopted by Toyota for the management of supply chain and logistics
so that they could reduce the wastage and deliver cars to consumers cheaply and quickly.
Question 4: Benefits of Just-in-Time
Q4 According to you, what are the benefits of Just-in-Time? Frequency
a) Production with efficiency in cost 4
b) Constant improvement in quality 5
c) Improving relationship of suppliers 3
d) Decrease in the time of manufacturing 8
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Interpretation: According to the provided bar graph, it has been summarised that there are
many benefits of Just-in-Time, from the total 20 participants, 4 participants have said that one of
the benefits are production with efficiency in cost it assists in maximising the production without
wasting the resources so that costs can be reduced, 5 participants said that Just-in-Time helps in
constant improvement in quality by considering all the necessary process for the production,
sales and marketing of the Toyota products, 3 participants have said that it assists in improving
relationship with suppliers by making payments to them on right time and the remaining 8
participants said just in time eliminates more time of manufacturing by eliminating not useful
steps in manufacturing.
Question 5: Impact of Just-in-Time on logistics and supply chain management of Toyota
Q5 What is the impact of Just-in-Time on logistics and supply chain
management of Toyota?
Frequency
a) Positive 8
b) Negative 3
c) Neutral 9
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Interpretation: As per the above data it is being interpreted that from total 20 managers it
has been identified that 8 respondents believe that the impact of just in time is positive because it
helps in reducing the various costs and decrease the storage of inventory in warehouses, 3
respondents believe that Just-in-Time has negative impact on supply chain and logistics
management as it takes a lot of time as it looks each activity and stage of manufacturing, selling
and marketing, the other 9 respondents said that the impact is neutral because it did not bring any
great changes as activities are moving with the same speed and do not have that great impact.
Question 6: Just-in-Time impacted Toyota
Q6 How does Just-in-Time impacted Toyota? Frequency
a) Reduced the cost 4
b) Minimising inventory 5
c) Create space in warehouses 6
d) Reduced time between incorporation and completion 8
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Interpretation: From the above given information it has been understood that just-in-time
has impacted Toyota with different ways, 4 participants says that it assisted in reducing the
various costs because every task and activity is done by minimising the wastage of resources, 5
participants said that with just in time Toyota has focused towards reducing the size of inventory
it focuses on direct supply of goods so that these goods do not remain idle in warehouses, 6
participants said that just in time created space in warehouse for the future goods by timely
supply of already manufactured goods, the rest 8 participants believe that Just-in-Time has
reduced the time of incorporation and completion of activities on time so that time could be
minimised and delivery of the goods could be done.
Question 7: Main issues occurred with Just-in-Time in Toyota
Q7 What are the main issues occurred with Just-in-Time in Toyota? Frequency
a) Supply shocks 6
b) Large orders 5
c) Demand shocks 9
26

Interpretation: With the mentioned data it is being summarised that 6 respondents said
that supply shocks are one of the issues of Just-in-Time as there are many businesses that make
big orders from wholesalers and some products are manufactured from a shipment and no
inventory for future would delay in supplying that make consumers angry, the other 5
respondents feel that by adopting just-in-time the company do not have enough inventory which
sometimes make them unable to fulfil the large orders from customers. Manufacturing goods in
small quantity and their sale increase the spending of company on shipment and the other
remaining 9 respondents said demand shocks are also one of the issues with Just in time as it
totally formed on the present orders as it is not effective for dealing with the demands that are
unexpected. So Toyota also have to deal with this problem as they become unable to meet the
unexpected demands.
Question 8: Changes occurred after implementing Just-in-Time within Toyota
Q8 What are the changes occurred after implementing Just-in-Time
within Toyota?
Frequency
a) Reduced waste 4
b) Improve competitive advantage 8
c) Increase cash flow 5
d) Control in production 3
27

Interpretation: From the above graph it has been understood that 4 participants feel that
after implementing just in time Toyota has controlled their wastage by limiting the usage of
resources, different type of resources can be saved, 8 participants think that with just in time
Toyota produces, sells and market their goods better than their competitors by timely supply of
goods , the other 5 respondents feel that just in time has increased their cash flow as they are
continuously supply their production which help in regular inflow and outflow of cash. The
remaining 3 participants said that it assisted in controlling production according to the need and
demands of customers.
Question 9: Ways through Toyota adapts with the new system
Q9 What are the ways through Toyota adapts with the new system? Frequency
a) Communication with supply chain 7
b) Making systematic plan for production 4
c) Communicating system with workers 5
d) Gathering of information 4
28

Interpretation: From the above mentioned it has been analysed that, 7 participants feel
that Toyota has adapted the new system of Just in time by clearly communicating with the supply
chain so that timely supply can be done and attained. 4 participants feel that it has adapted JIT by
formulating systematic plan for production so that every employee could understand the
implementation JIT in operations, 5 respondents think that Toyota has adapted it by
communicating about the just in time system with workers or employees as it is necessary
because they are more responsible for executing the system and the rest 4 participants said that
Toyota has adapted this system by analysing and gathering information about the system with
their advantages and disadvantages so that it could become beneficial for company.
Question 10: Implications Toyota had at the beginning of Just-in-Time
Q10 What are the implications Toyota had at the beginning of Just-in-
Time?
Frequency
a) Producing units that are necessary 4
b) Zero defects in goods 8
c) Developing environment that is flexible 8
29

Interpretation: From the above mentioned information it has been analysed that there
are 20 respondents, 4 participants said that one of the implications of JIT is it assists company in
producing units that are necessary that means according to the demand , the other 8 respondents
feel that the other implication is zero defects in goods due to JIT as goods are made according
with proper concentration and focus and the other remaining 8 participants said that JIT develops
environment which is flexible as it lights out the work without wasting resources and giving
proper time to do work according to the need.
Question 11: major challenges of logistics and supply chain management faced by Toyota
Q11 What are the major challenges of logistics and supply chain
management faced by Toyota?
Frequency
a) Consumer demand drive 6
b) Complexity in supply chain 4
c) Increase the risk in supply chain 10
30

a) Consumer demand drive
b) Complexity in supply chain
c) Increase throughout the supply chain
0
1
2
3
4
5
6
7
8
9
10
6
4
10
Frequency
Interpretation: From the above mentioned table it has been analysed that out of whole
20 participants, 6 participants feel that consumer demand drive is one challenge of logistics and
supply chain management by Toyota as they produce and sell goods according to the present
demand which make them unable to meet the high demand for goods from customers, the other 4
participants say that complexity in supply chain is an another challenge for Toyota as consumers
purchase goods from different channels so there is serious need to address every channel, the
remaining 10 participants said that the another challenge is increased risk in supply chain as
there are changes occur in environment pressures by economy and so all these changes create
pressure on the company.
Question 12: Effective ways that would be use by Toyota for overcoming challenges
associated with logistics and supply chain management
Q12 What are the effective ways that would be use by Toyota for
overcoming challenges associated with logistics and supply chain
management?
Frequency
a) Just-in-time 7
b) Optimise inventory and supply chain demand 6
c) Improving quality and speed in the supply chain 7
31

a) Just-in-time
b) Optimise inventory and supply chain demand
c) Improving quality and speed in the supply chain
5.4
5.6
5.8
6
6.2
6.4
6.6
6.8
7
7
6
7
Frequency
Interpretation: From the above mentioned data it is interpreted that out of total 20
respondents selected from Toyota, 7 respondents said that challenges of logistics and supply
chain management can be overcome by Just-in-Time as it assists in producing goods according
to the demands of consumers, 6 respondents said that the challenges can be overcome by
optimising demand of supply chain and inventory help in meeting all the demands and timely
delivery of goods and the remaining 7 respondents said that issues are overcome by enhancing
speed and quality in the supply chain so that customers could great goods according to their
requirement.
32

Discussion
This is essential for researcher to evaluate secondary information gathered for literature
review. For evaluating such type of information, there is requirement of making themes that are
explained as below:
Theme 1: Just-in-Time and its impact caused on logistics and supply chain of Toyota
Just in time is the approach related to inventory management that help in order to
effectively arrange the need of stocks within an organisation along with effective management of
working capital requirements. This is the approach where that amount of stock is ordered which
actually needed for performance of regular nature transactions. This aid in saving of extra
investment in the exercise of holding unnecessary amount of stocks which is going to be used in
an organisation in future. The ultimate effect of this over logistics that aid in fulfilment of extra
needs and requirements so able to deliver quality services to users.
Theme 2: The changes occurred before and after Just-in-Time implementation within
Toyota
Drastic level of changes is visible in Toyota after implementation of JIT within an
organisation. This not only help to regularise the amount of stocks but providing an opportunity
to invest the saved amount in other activities of an organisation like logistics and supply chain.
The other major benefits visible from the application of this exercise are providing quality
services to different users on stipulated period of time.
Theme 3: Ways through Toyota adapts with this new system
From the above mentioned secondary data gathered for literature review, it has been
discussed that there are various ways by which Toyota adapts with new system. These are
communication with supply chain, making systematic plan for production, communicating
system with workers and gathering of information. The different ways that were adopted by
Toyota for implementation of JIT within an organisation includes change in personnel
management, software changes, training of existing staff in inventory department and
development of new team for handling and planning of investment activities. All these functions
have their own different role in exercise of effective JIT implementation. The major role was
performed under this by training and software changes.
Theme 4: Implications Toyota had at the beginning of the Just-in-Time
33

There are many of the implications that Toyota faced at the time of implementing JIT
within an organization. This includes resistance of employees towards change, high investment
of cost, reduction in profit margin, lack of training and presence of incompetent staff against new
implemented software’s. Out of these all, the implications that majorly affect the organizational
capacity to function according to standards include incompetency among staff and high level of
investment.
CONCLUSION AND RECOMMENDATIONS
Conclusion
From the above mentioned information, it has been concluded that logistics and supply
chain management is important for an organisation because it helps them in improvement of
business operations. It has been determined that majority of participants had knowledge
regarding the supply chain management and logistics along with its importance for business
organisation. There are various systems of supply chain management and logistics are discussed
i.e. Kanban system, Just-in-time etc. These are effective but Just-in-time is important because it
helps in increasing of customer base that result in increased sales. There are various benefits of
Just-In-time such as production with efficiency in cost, constant improvement in quality,
improving relationship of suppliers, decrease in the time of manufacturing etc. Thus, Just-in-time
has positive impact on supply chain management and logistics.
There is also some impact of JIT such as reduced the cost, minimising inventory, create
space in warehouse, reduced time between completion and incorporation etc. There are some
changes occurred after implementing Just-in-Time within an organisation such as reduced waste,
improves competitive advantage, increase cash flow, control in production and many more.
There are also some ways adopts by business with the new system that are communication with
supply chain, making systematic plan for production, communicating systems with workers and
gathering of innovation. Therefore, logistics and supply chain management helped business
organisation in attainment of business goals and objectives easily.
Recommendations
From the above mentioned information, it has been recommended that Just-in-time is an
effective technique of supply chain management and logistics. There are some ways that should
34

be use by Toyota for overcoming the challenges associated with logistics and supply chain
management. These are:
 Optimise inventory and supply chain demands across multiple channels: Supply
chain managers of Toyota need oversight across every route to market with correct
demand planning. This will support them in maintaining of appropriate inventory
levels, so channels do not run out of products. This will help them in increasing of
sales and profitability easily.
 Improve quality and speed in the supply chain: This is another way that would be
use by the supply chain manager of Toyota. For this company can improve the
quality and speed of their product. As it turns to impact in increasing of customer
base within less period of time. Managing and driving down costs in supply chain:
Increasing fuel labour and commodity costs could increase the charges for
organisations throughout the supply chain that would pass on the end business.
Managers of supply chain require to control and understand the challenges of cost.
Control on costs rely upon transparency. Companies should report overheads and
costs in a centralized manner so that right reporting and tracking can be done
35

REFERENCES
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36

APPENDIX
QUESTIONNAIRE
Q1 Do you know that logistics and supply chain management are significant for the business of
Toyota?
a) Yes
b) No
Q2 Do the sector of logistics and supply chain management is increasing as the work is
increasing?
a) Yes
b) No
Q3 What are the two systems that are used by Toyota for the supply chain management and
logistics sector?
a) Kanban system
b) Just-in-Time
Q4 According to you, what are the benefits of Just-in-Time?
a) Production with efficiency in cost
b) Constant improvement in quality
c) Improving relationship of suppliers
d) Decrease in the time of manufacturing
Q5 What is the impact of Just-in-Time on logistics and supply chain management of Toyota?
a) Positive
b) Negative
c) Neutral
Q6 How does Just-in-Time impacted Toyota?
a) Reduced the cost
b) Minimising inventory
c) Create space in warehouses
d) Reduced time between incorporation and completion
Q7 What are the main issues occurred with Just-in-Time in Toyota?
a) Supply shocks
37

b) Large orders
c) Demand shocks
Q8 What are the changes occurred after implementing Just-in-Time within Toyota?
a) Reduced waste
b) Improve competitive advantage
c) Increase cash flow
d) Control in production
Q9 What are the ways through Toyota adapts with the new system?
a) Communication with supply chain
b) Making systematic plan for production
c) Communicating system with workers
d) Gathering of information
Q10 What are the implications Toyota had at the beginning of Just-in-Time?
a) Producing units that are necessary
b) Zero defects in goods
c) Developing environment that is flexible
Q11 What are the major challenges of logistics and supply chain management faced by Toyota?
a) Consumer demand drive
b) Complexity in supply chain
c) Increase the risk in supply chain
Q12 What are the effective ways that would be use by Toyota for overcoming challenges
associated with logistics and supply chain management?
a) Just-in-time
b) Optimise inventory and supply chain demand
c) Improving quality and speed in the supply chain
38