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

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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