Toyota Canada Supply Chain Risk Management (SCRM)

This article provides an overview of Toyota Canada's organizational structure, products, and internal challenges. It also discusses the company's enterprise risk management (ERM) strategies and challenges in implementing them with SCRM. The article highlights the economic slowdown, recalling of vehicles, and competition as some of the challenges facing Toyota Canada. The article concludes by suggesting that Toyota should implement strict internal quality products tests to detect technical errors during manufacturing before releasing them to the market.

TOYOTA CANADA SUPPLY CHAIN RISK MANAGEMENT (SCRM)
Institutional Affiliation
Date

Overview of the goods and/or services offered by your TOYOTA CANADA
INTRODUCTION
Toyota Canada is an automotive company that was founded in the year 1964. Its headquarters is
in Toronto, Ontari.It mainly serves in the areas of Canada. The company operates two vehicle
manufacturing facilities, Toyota Motor Manufacturing Kentucky, Inc. (TMMK) and Toyota
Motor Manufacturing Canada Inc. (TMMC)(Jacobs 2015).Toyota Motor Manufacturing Canada
Inc. (TMMC) dealing with manufacture of North American market vehicles, Toyota and Lexus.
The Lexus RX 350 and Lexus RX 450h hybrid and Toyota Corolla are manufactured at
TMMC’s south and north plants in Cambridge, Ontario. TMMC’s Woodstock manufactures
RAV4 in Ontario which was opened in 2007. While Toyota Motor Manufacturing Kentucky, Inc.
(TMMK) is an automobile manufacturing facility operating in Georgetown, Kentucky, USA. It
operates in areas of North America (TEMA) owned by Toyota Motor Corporation of Japan. The
brand offers services such as vehicle leasing, vehicle service, and automotive finance. Toyota
Canada has employed over 24,000 all Toyota companies and dealers. Toyota Company is owned
by Toyota Motor Corporation.
Company Overview
The products associated with the Toyota Canada are in a wide variety such as materials handling
equipment, automobiles (car air-conditioning compressors, vehicles, engines, and car
electronics) and textile machinery(Nagasawa, Ed. 2012).
Organizational Structure

Toyota organizational structure is divisional which make it more effective evident on its global
success over the years. The structure underwent some changes in 2013 to correct some product
recalls due to safety issues raised by the investigators in 2010(Kingsnorth, 2011).
Past organization structure was a strong centralized global hierarchy. The company headquarters
was in Japan and was responsible for all the decisions. The structure was greatly criticized of
slow response to safety issues and amended in 2013 as follows(McLelland. 2016).
From the top is:
Global Hierarchy.
The company maintains its global hierarchy even after the changes were made in 2013. The
decision making power currently has been given to regional heads and business unit head as
opposed to times before 2013. The decision-making process is never centralized anymore even
though all business units are required to report to the global headquarters in Japan.
Geographic Divisions
There are eight regional divisions in Toyota’s organizational structure, namely; Japan, North
America, East Asia and Oceania, Asia Middle East, Latin America and the Caribbean, Europe,
China, and Africa. All regional heads are supposed to reports directly to the company’s
headquarters. These regional divisions help Toyota company improve its products and services
with the needs arising from each regional market-specific needs.
Product-based Divisions
Toyota organizational structure also has the set of product based divisions. They are four and
they include; a. Unit Center, which is responsible for engine, transmission and other related

operations, b. Toyota No. 1 for operations in North America, Europe, and Japan, c. Lexus
International and d. Toyota No. 2 for operations in all other regions(Kingsnorth, 2011). This
characterization of Toyota organizational structure helps in supporting the development of
brands and product lines.
Description of Enterprise Risk Management (ERM)
Fig. A representative of existing Enterprise Risk Management (ERM)
The enterprise risk management team is comprised of from the top Board of Directors, followed
by Corporate Governance Meetings Organized by the Risk Management Chairman; Global CRO
executive vice president Shigeki Terashi(Toyota&Namerikawa 2017, September).
The regional heads in equal positions, company risk managers in participation as well as the
presidents, chief officers, Respective Groups (functional), respective company and all the

regional CROs. All of these groups of people collaborate to manage risks in a different capacity
to improve the services of the Toyota Company across the globe(Herbert et al., 2012).
This new structure helps the company to be more vigilant in responding to regional market
conditions hence they are able to meet their needs.
There is flexibility in speeding responses to issues and the provision of high-quality products in
the global market by the Toyota Company.
Toyota Company is experiencing continued growth as this organizational structure is able to
facilitate business resiliently (Chari, John, & Murphy 2010).
However, increased regional heads decision-making power has reduced powers of global
headquarters control over the global organization.
Description of the internal challenges
 The biggest challenges with Toyota Canada are associated with Economic slowdown and
recession which affects the company’s sales in all areas of manufacturing. This impact is
felt by the company in the international market(Cameron& Watson 2010).
 The economic slowdown is making consumers try to save almost every coin restricting
them from buying any car.
 Recalling of close to 9 million Toyota Company and other automobiles caused by
challenges of unintended acceleration. vehicles its sports utility vehicles and pickup
trucks caused by problems reported in the front suspension systems. This led to spending
billions of of money by Toyota company raising a need to do a rhorough test of their

automobiles since it is a matter of safety of their customers buying their
products(Cameron& Watson 2010).
 Huge penalties due to practices of non-safety measures raising a need to be very cautious
when manufacturing, testing and releasing their products in the market(Comeau,
Dalmotas& German 2011, May).
 There is tremendous competition faced by the Company which continues to increase
every day as a result of new entrants of companies dealing with the manufacturing of
automobiles into the market from other countries in world. This calls for Toyota to come
up with new products and improve their product quality further to retain their position.
This requires a need to adopt new plans and strategies to retain market leadership(Chari,
John, & Murphy 2010).
Challenges facing managers in the process of implementing or using ERM with SCRM
 The company managers are faced with a struggle to ease the recall and repair process by
offering a free at-home recalled pick-ups vehicles and alternative transportation for the
owners, while they try to fix the problems(Essays, UK. November 2013).
 They have the greatest challenge of restoring their reputation to consumers who feel that
the company takes too long to fix problems related to safety issues and sometimes even
ready to mislead investigators not to notice them(Kingsnorth, 2011).
 The other challenge is trying to come up with new ways that will convince the consumer
that their products are now safe and increase their sales to return to normal.
 The management is to make sure that in future such blows are rectified before the public
notices(Essays, UK. November 2013).

 Toyota executives have been failing to prioritize planning for comprehensive, automated
and exceptional based risks in assumption blinded by recent company massive
growth(Yokoyama 2009, September).
Challenges low-end system users
 There is a need to transform system low-end user computing platform by migrating
from a heterogeneous operating system environment with the consolidation of
Windows 7 (Heymans, Walker, Young & Fowler, 2014).
 Rising service desk calls and low-end system user due to the poor manageability of
new environmental
 Lack of modernized and improved end-user experience lacking support for greater
employees’ productivity.
 Poor integration with existing infrastructure and application making the system
unstable.
 The high cost of ownership due to the high overall cost of service.
 The Toyota vehicles owners continued the experience of sudden acceleration
problems in some cases even after the said fixation of recalled vehicles has been
made end users feel more troubled in their own problems(Fergusson, 2011).
 There is mixed consumer opinion according to polls conducted on the safety of
Toyota brands. The polls reported that 31% of USA consumers of Toyota products
were feeling unsafe, 35% did not have confidence in the brand with 7% with no
intention of ever buying Toyota products. There is 55% of consumers who feel that
the company response to safety issues is too slow and that could endanger future of
Toyota brands(Comeau, Dalmotas& German 2011, May).

 There is difficulty in managing a global supply chain as Toyota executives fail to
prioritize ways of planning risk management by assuming calls from the employees’
to make changes in the quality (Heymans, Walker, Young & Fowler, 2014).
Conclusion
Toyota Corporation is one of the leading companies in the automobile manufacturing industry.
The company has dealt with many challenges over the past years more so restoring its reputation
tied to the 2010 mess. This mess resulted in the recalling of close to 9 million manufactured
automobile vehicles from the market and was greatly felt by the powerful company. The
company in response to what it believes (customer centrism), TMC spent millions to fix reported
issues in the vehicles that were already been bought bought by the consumers and gave required
fast information to the concerned customers. Toyota automobiles also were able to determine the
origin of the mess, and dedicated itself to analyzing it deeply in making sure it retains its position
in the global market. What the company ought to do is implement a more strict internal quality
products test on all of its vehicles and products to help with detection of any technical errors
during manufacturing before they are released to the market. By so doing the company will save
millions of money which would otherwise be used to correct recalls and detection problems.
Lastly and not the least, Toyota motor corporation will be able to retain its position in the
automobile industry at all times.

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