Toyota's Logistics and Supply Chain Challenges in the UK

This research project investigates the challenges of logistics and supply chain management faced by Toyota in the UK. The report explores the implementation and impact of the Just-in-Time (JIT) system within Toyota's operations. It examines the changes that occurred before and after JIT implementation, the ways Toyota adapted to the new system, and the implications at the beginning of JIT. The research utilizes secondary sources to analyze the benefits and challenges associated with JIT, focusing on its role in improving production processes, supply chain efficiency, and timely delivery. The study aims to identify the significance of JIT in mitigating logistics and supply chain challenges within the company. The report includes a literature review, research methodology, results and findings, discussion, and conclusions with recommendations for Toyota's supply chain management.

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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