Toyota Logistics and Strategies - Supply Chain Analysis Report

This report provides an overview of Toyota's logistics and supply chain strategies. It examines Toyota's approach to inbound logistics, emphasizing the use of a centralized system to influence purchasing decisions and the implementation of a just-in-time approach. The report highlights the importance of frequent, small-lot deliveries and the role of suppliers, including first-tier and second-tier suppliers, in the supply chain. It also discusses Toyota's partnerships with third-party logistics providers (3PLs) and the efficiency of its network logistics model, which supports the company's 'small lots, frequent deliveries' strategy. The report references key sources to support its analysis of Toyota's supply chain operations.

Supply Chain
4/30/2019
Toyota logistics and Strategies

Toyota logistics and Strategies
Toyota is one of the Japanese automotive manufacturers with the head office in Toyota, Aichi,
Japan. Toyota Company has the logistic control division in taking a more centralised approach
that manage its inbound logistics network to effort in order to influence the carmaker’s decision
for purchasing the products. The production system of Toyota smooth that is possible because of
the just-in time approach of logistics that need the strict plan distributions at the appropriate time.
It has been found that low inventory of the company pull the system for the replenishment that
demand for the high frequency and small lot deliveries (Christopher, 2016). The performance
indicators for the Toyota include packaging, transportation, daily operations, and connection at
all the routes.
Suppliers
Organized suppliers are maintained by Toyota, which include first-tier system that includes
working together in the product development team. In addition, second –tier include
manufacturing of the individual parts. Strategy of Toyota is to send their personnel to the
suppliers in order to compensate high workload (Ludwig, 2013).
Local inbound logistics and strategy
Toyota success is measures in operating a system in the lean supply chain that need all the parts
be transported from the suppliers in the effective manner. The company is forms the partnership
with very less or limited number of third-party logistics providers (3PLs) in order to deliver the
logistics services (Christopher, 2016).

Network logistics
The model of the network logistics allows the Toyota Company to operate a very efficient as
well as effective inbound logistics operation. The strategy of company is “small lots, frequent
deliveries” (Ludwig, 2013).

References
Christopher, M. (2016) Logistics & supply chain management. UK: Pearson.
Ludwig, C. (2013) Toyota’s total supply chain vision [Online]. Available from:
https://automotivelogistics.media/interview/total-supply-chain-vision [Accessed on 30th April
2019]