Toyota Canada Supply Chain Risk Management (SCRM)

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