Toyota Motor Corporation: Supply Chain Management Analysis Report

This report provides a comprehensive analysis of Toyota Motor Corporation's supply chain management, operations, and logistics. It begins with an introduction to supply chain management and its importance in maximizing customer value and achieving a competitive advantage, using Toyota as a case study. The report then critically reviews relevant theories of operations, logistics, and supply chain management, focusing on Toyota's practices. It explores strategies such as lean and agile approaches, logistic strategies, and procurement strategies, including the application of Just-in-Time methods. The analysis includes a discussion of performance evaluation using both qualitative and quantitative measures to assess the effectiveness of Toyota's SCM. The report concludes with recommendations for further improvement and emphasizes the importance of strategic planning, supplier relationships, and continuous optimization to maintain a strong supply chain and achieve business objectives. The report also highlights the significance of customer satisfaction and the integration of material and information flow within the supply chain.

Understanding Operations,
Logistics and Supply Chain
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
Critical Review of relevant Operation, Logistics and Supply Chain Management theories.......1
Analysis with relevant and similar example(s) and applying appropriate solutions of
Operations Management.............................................................................................................3
Conclusion and recommendations:.............................................................................................5
REFERENCES................................................................................................................................8
.........................................................................................................................................................9

INTRODUCTION
Supply chain management is one of the effective processes which helps in providing right
products at the correct time. With the help of this, organization easily maximizes customer’s
values and achieve competitive advantage from its rivals. SCM considers all the processes of
product development to enhance overall performance of company in market place. Basically it is
a flow of goods and services (Ahi and Searcy, 2013). One of the best benefits of SCM is to
increase customer’s loyalty which directly contribute in the development of organizational
growth. Present essay is based on Toyota Motor Corporation which is one of the biggest auto
maker company. This firm was established by Kiichiro in the year 1937. They operate their
business operations in various countries. They sell motor vehicles in more than 170 nations. In
2008, it has become the first auto maker company and having 13.8% shares. This essay includes
the supply chain management and its techniques which help in achieving organizational success
in market place. Along with this, potential areas of improvement are also mentioned in this
essay.
TASK
Critical Review of relevant Operation, Logistics and Supply Chain Management theories
Supply chain management is an effective activity in which company covers the
procurement of raw materials and effective distribution of final goods and services. Basically, it
is a management art in which firm provides good quality products at the right place and cost to
the end users in order to gain their higher satisfaction (Significance of Mobility in Supply Chain
Management, 2016). In context of Toyota, SCM is an effective tool which is used by company to
buy raw material from the best suppliers in order to produce final products to their customers.
With the help of this, company easily captures high market share and get competitive advantages
from its rivals. Better supply chain management helps in increasing the number of customers
towards products to satisfy their needs in an appropriate manner.
Along with this, Toyota uses an effective supply chain management to enhance their
productivity level in an appropriate manner. For evaluating the performance, company uses
quantitative and qualitative measures in which they assess actual position of business and it’s
SCM. With the help of these methods, Toyota easily eliminates their weak areas and enhances
productivity. Better measurement of performance defines higher customer’s satisfaction, better
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supply performance, flow of all the raw material and its information to develop the
organizational activities in positive manner (Chen, Sohal and Prajogo, 2013). If assessment of
performance is effective then company easily enhances their strategies in order to achieve better
competitive advantage from its competitors which lead to improve goodwill in the market place.
In this process, qualitative and quantitative measures help in evaluating the overall performance
of Toyota motors which can be understood by some points as mentioned below:
Satisfied customers: End users as well as consumers play a significant role in supply
chain management because it is totally dependent on the customers. In this, final goods and
services are delivered to customers so that their higher satisfaction is more important for the
company. Effective satisfaction of customers is divided into three phases i.e. before delivering
satisfaction, during transaction and last one is satisfaction after transaction. With the help of this,
company easily evaluates customer’s satisfaction about products which leads in achieving
positive results by end users in the most effective manner.
Integration of material flow and information: In this context, supply chain
management is an effective tool in which company easily communicates the relevant information
in front of consumers so that they can easily transport all goods and services in an effective
manner (Closs, Speier and Meacham, 2011). In this, information should be exchanged in an
appropriate manner to enhance the overall performance of company in market.
Supplier performance: It is more important for Toyota in which they include the best
suppliers who are capable in providing quality raw material in order to make best finished goods
to their customers. So that it play significant role that connection with supplier is more effective
in order to get positive results in most effective manner.
Qualitative activity will measures financial and non-financial performance: In this
aspect, financial measures help in evaluating the overall performance of supply chain
management which is related with the optimum profitability of company and less loss. With the
help of this, Toyota identifies their actual performance at market place in the most effective
manner. On the other side, non-financial measures define as well as include customer’s service ,
stock level and better utilization of resources. In this, waste management is also important for
company which helps in assessing the production and profitability of supply chain of Toyota by
eliminating wastage and reducing the production cost in effective manner (De Vries and
Huijsman, 2011).
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Analysis with relevant and similar example(s) and applying appropriate solutions of Operations
Management
Better analysis of supply chain management is one of the important processes for
company in which Toyota makes an effective strategy to improve their SCM in which they easily
deliver quality products at right time to their end users (Golicic and Smith, 2013). In this context,
company also needs to evaluate various things to analyse the competitive advantage. With the
help of this, they easily survive in the market place. In this aspect, there is requirement of
effective strategies and their application to improve performance. If company assesses these
strategies then they can easily implement better supply chain management in their operational
activities and will get better success. With the help of this, Toyota improves their supply chain
and delivers the best services to consumers. There are some effective strategies which covers
units of Toyota motor's manufacturing are as follows:
Lean and Agile strategy to the supply chain: It is an effective aspect in which lean is
used in the supply chain on order to improve overall performance of the company. Along with
this agile is also apply after the lean. Both are important for the supply chain in order to
maintain the better performance in effective manner (Govindan, Soleimani and Kannan, 2015).
Benefits:
 By using this strategy company easily improve their quality of work and also reduce the
wastage in effective manner.
 Implementation of agile and lean company easily enhance the productivity level at
market place.
Disadvantage:
 It requires better training which cost would be high for the company.
 Implementation of this strategy requires skilled and experienced labour.
Logistic strategic: It is one of the important which play important role in supply chain
management. With the help of this Toyota easily frame their strategic decision which include
transportation tools and distribution point of the products in order to achieve better results in
most effective manner.
Benefits:
 It helps in enhancing the number of satisfied customers.
 It also aid in enhancing the better assessment of resources and techniques (Hitt, 2011).
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Constraints:
 Logistic strategy is hard to manage in the company.
 Human touch is less between customers (Knemeyer and Naylor, 2011).
Purchase procurement strategies: It is important for the company in supply chain
management which helps in increasing the profitability of the company. Along with this, it also
helps in TQM in order to improve the overall performance of the firm in appropriate manner.
Benefits:
 With the help of this strategy, company easily improve their service quality which also
aid in increasing the number of satisfied customers.
 If company use best purchase strategy than they easily reduce the operation cost in by
purchasing raw material form suppliers at low price.
 With the help of this company easily maintain the better connection with suppliers in
most effective manner.
Constraints:
 If company fails in selecting right purchase strategies than they reduce their profitability
in market place (Lusch, 2011).
Lean production system: It is more important for the company to make as well as produce
quality products in effective manner. In this, Toyota use this system for manufacturing their cars.
This type of methods is related with the six sigma but in lean production it determine the
customers demand which leads in enhancing the overall performance of the company at market
place. Process of lean production include effective activities which maximize the values in order
to get better satisfaction level by their customers. Some methods are related with the root cause
in which they evaluate the mistakes and find the better way to improve all the activities in
appropriate way.
Effective lean production, Just-in-Time and supply chain management helps to Toyota to
achieve success at market place. As per this description of Just-in-Time is mentioned in below:
Toyota's Just-in-Time methods: Toyota company is biggest firm in market which
having capital intensive nature. In this context, cost effective strategies in implement by the
company in which they set lower production cost so that they easily covers their profitability in
effective manner (Mangan and Lalwani, 2016). Toyota production system is based on complete
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elimination of wastage in which they reduce the production cost and wastage to achieve better
outcomes.
Along with this, performance system of the Toyota emerged by many years tries and also
enhance the productivity by using Just-in-Time methods in this it only define actual required of
the firm in effective manner (Zhu, Sarkis and Lai, 2013). In this the implementation of the JIT in
the operational activity of the company in which the manufacturing of the vehicles is based on
the customers orders which is get by the company dealers. After that company use effective
supply chain management methods in order top produce effective final products which offer to
the end users in appropriate time period and cost.
As per the company Just-in-Time more effective for the company to improve efficiency
of the working performance which leads in defining best success at market place.
Conclusion and recommendations:
Conclusion
From the above mentioned essay, it can be concluded that supply chain management is
core concept for Toyota auto maker company which helps in achieving better competitive
advantage form its rivals. With the help of this they easily deliver quality services to their
customers in order to increase their profitability and satisfaction level in most effective manner.
It also aid in maintaining the better sustainability within the operational process of the company.
Along with this, it can be say that for achieving predetermine target company needs to make
better strategies and applies in their activities so that firm easily achieve their desirable goals and
objectives. In this company used Just in time, agile and lean strategies to attain its objectives in
appropriate time period. With the help strategies company easily analysis their activities. So that
it is more important for the enterprise to prepare as well as define strong strategies to develop
their activities in market place. Apart form this, Toyota needs to implement all the strategies for
maintain their supply chain management performance which leads in enhancing the overall
performance of the company in most effective manner. If company effectively implement all the
factors than they capable in enhancing their delivering process in order to get better results.
Supply chain management include supplies and dealer in which they share overall
profitability with them. It helps in maintaining as well as managing better supply chain in more
effective way. For define better stability in supply chain management it is more important for the
company to determine the production, supply and demand of the products and services. In this
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context Toyota define their responsibility for including best supplier to enhance their operations
reliability in effective way which leads in managing uncertainty within the company to improve
the performance level. If company expand their business so that they have to working with new
and unfamiliar suppliers and make better understanding with them. Furthermore improvement in
outbound logistic is also important in order to manage their performance in effective manner. In
this manufacturer take responsibility for selling motor vehicles to the retail consumers to
maintain their profitability level. In this context, Toyota sell their model in market place in order
to achieve best percentage in market place. In this the outbound logistic description in
appropriate manner in order to maintain their overall performance in systematic manner.
Recommendation
According to above information it can be recommanded to the Toyota that, it is important
for the company to effectively analysis their supply chain activities on daily basis so that they
easily evaluate their actual performance in market place. With the help of this manager of the
company easily determine the shortcoming and negative aspect which affect the overall
performance of the company. For eliminate as well as reduce the changes of negative impact
company use effective methods in which they improve their operational process and also
maintain their performance level at market place. In this context, it is more important for the
company to use effective supply chain management so that they easily provide quality and
featured product and services to their customers. With the help of this they easily achieve higher
satisfaction level and loyalty of the customers towards the products and services of the company
in most effective manner. By using better supply chain management, company retain their
potential customers for long time period and also increase their profitability at market place.
Effective use of all the strategies and methods Toyota maintain better coordination among all the
function which perform in the operational process. Along with this it also recommanded to the
manager that they should analysis all the business activities on regular basis so that they maintain
effective supply chain activities. In this context, it is also important for the manager to maintain
their quality products and also set effective cost in which they get effective benefits to the
company from its customers. With the help of this Toyota easily offer quality services to their
target customers at affordable cost in order to achieve competitive advantage form its rivals. If
company execute all the supply and operational activities in effective manner than they easily
satisfy their customers demand by providing quality products and services. At recent time Toyota
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use Just-in-Time and lean production approaches to manage all the business activities in
effective manner. Along with this, manager should be evaluated and determine the effective
supply process so that company easily perform all the aspect if operational activities in most
effective manner which lead in achieving competitive advantages in market place. With the help
of all these aspect company easily increase their overall performance and also implement better
supply chain activities in order to deliver quality products to their potential customers at
appropriate time and place which lead in enhancing the productivity level of the Toyota at
market place in systematic manner.
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REFERENCES
Books and journals
Ahi, P. and Searcy, C., 2013. A comparative literature analysis of definitions for green and
sustainable supply chain management. Journal of Cleaner Production. 52. pp.329-341.
Chen, J., Sohal, A. S. and Prajogo, D. I., 2013. Supply chain operational risk mitigation: a
collaborative approach. International Journal of Production Research. 51(7). pp.2186-
2199.
Closs, D. J., Speier, C. and Meacham, N., 2011. Sustainability to support end-to-end value
chains: the role of supply chain management. Journal of the Academy of Marketing
Science. 39(1). pp.101-116.
De Vries, J. and Huijsman, R., 2011. Supply chain management in health services: an
overview. Supply Chain Management: An International Journal. 16(3). pp.159-165.
Golicic, S. L. and Smith, C. D., 2013. A meta‐analysis of environmentally sustainable supply
chain management practices and firm performance. Journal of supply chain
management. 49(2). pp.78-95.
Govindan, K., Soleimani, H. and Kannan, D., 2015. Reverse logistics and closed-loop supply
chain: A comprehensive review to explore the future. European Journal of Operational
Research. 240(3). pp.603-626.
Hitt, M. A., 2011. Relevance of strategic management theory and research for supply chain
management. Journal of Supply Chain Management. 47(1). pp.9-13.
Knemeyer, A. M. and Naylor, R. W., 2011. Using behavioral experiments to expand our
horizons and deepen our understanding of logistics and supply chain decision
making. Journal of Business Logistics. 32(4). pp.296-302.
Lusch, R. F., 2011. Reframing supply chain management: a service‐dominant logic
perspective. Journal of Supply Chain Management. 47(1). pp.14-18.
Mangan, J. and Lalwani, C., 2016. Global logistics and supply chain management. John Wiley
& Sons.
Prajogo, D. and Olhager, J., 2012. Supply chain integration and performance: The effects of
long-term relationships, information technology and sharing, and logistics
integration. International Journal of Production Economics. 135(1). pp.514-522.
Ross, D. F., 2013. Competing through supply chain management: creating market-winning
strategies through supply chain partnerships. Springer Science & Business Media.
Tang, O. and Musa, S. N., 2011. Identifying risk issues and research advancements in supply
chain risk management. International journal of production economics. 133(1). pp.25-
34.
Waller, M. A. and Fawcett, S. E., 2013. Data science, predictive analytics, and big data: a
revolution that will transform supply chain design and management. Journal of Business
Logistics. 34(2). pp.77-84.
Waters, D. and Rinsler, S., 2014. Global logistics: New directions in supply chain management.
Kogan Page Publishers.
Zhu, Q., Sarkis, J. and Lai, K. H., 2013. Institutional-based antecedents and performance
outcomes of internal and external green supply chain management practices. Journal of
Purchasing and Supply Management. 19(2). pp.106-117.
Online
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Significance of Mobility in Supply Chain Management. 2016. [Online]. Available through: <
http://www.rigelnetworks.com/significance-mobility-supply-chain-management-2/ >.
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