Toyota's Supply Chain: Analysis of Risk, Transfer Impact, and Strategy

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Added on 2024/06/28

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This report delves into Toyota's supply chain processes, examining the implications of shifting manufacturing operations to factories in India, Bangladesh, and the Philippines. It identifies and assesses the risk factors associated with Toyota's supply chain, offering recommendations for risk mitigation. The report outlines the steps for successfully introducing a new product range through the supply chain, emphasizing the importance of collaboration. Furthermore, it explains the characteristics of push and pull strategies in supply chain management and discusses optimal management approaches. The report provides an explanation of the inventory data recovery process and details the logistics processes for moving goods from manufacturing sources to the Jebel Ali inventory warehouse. Finally, it compares various transportation models and offers decision-making recommendations.

SUPPLY CHAIN
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Table of Contents
Introduction...................................................................................................................... 3
The impact in the supply chain of transferring all the manufacturing to factories in India,
Bangladesh and the Philippines....................................................................................... 3
The entire risk factors of the supply chain that is involved in Toyota...............................5
Recommendation to overcome the risk factors................................................................6
The detailed steps required to introduce a new product range successfully through the
supply chain and the importance of collaboration in the supply chain process................6
The characteristic of the term push and pull in the process of supply chain and the best
way to manage it.............................................................................................................. 8
Explanation of inventory data recovery process in supply chain....................................10
Detail knowledge of logistics processes for moving goods from the manufacturing
source to the inventory warehouse in jebel Ali...............................................................11
Comparison of various models and transport.................................................................11
Recommendation for the decision making purpose.......................................................12
Recommendation........................................................................................................... 12
Conclusion..................................................................................................................... 13
Reference....................................................................................................................... 14
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Introduction
This report is discussing the supply chain processes for Toyota. The report includes
various knowledge about the objective of Toyota towards the factories of east and
Middle East Asia. However, the impact of the supply chain that is transferring in the
manufacturing factories like Bangladesh, India and the Philippines is also a crucial part
of the discussion of this report. Similarly, the entire risk factors that are associated with
this supply chain is included in this report. Apart from this, all possible recommendations
are also discussed in the report that helps to recover the entire factors of risks. At the
same time, the report is discussing a detailed knowledge that how a new range of a
product can be introduced with success and it also discussed the importance of the
term collaboration in the success of supply chain management. The term push and pull
is also the focused point of this report that is playing a significant role in the supply
chain management. However, the report also describes the importance of these two
strategies while the new product is introduced in the market. The discussion is
progressed by providing detailed knowledge of inventory data that is required to
manage the supply chain of the organization. The report is ending with a discussion of
the entire logistics process that is required to move goods from manufacturing sources
to the era house of inventory for Jebel Ali.
The impact in the supply chain of transferring all the manufacturing to factories in
India, Bangladesh and the Philippines
The Toyota has planned that they will move their products to the new sites such as in
India, Bangladesh and the Philippines within the next twelve months. The prior objective
of Toyota is to save the cost of the product and expand its target market to the Middle
East countries. However, the company is also enhancing the growing percentages for
the selling of their products in the area of the middle east. In the perspective of the
supply chain, there are several advantages and disadvantages can be seen (Deresky,
2017.). The efficiency of the process of production and the services of customers is
improved by the well-managed supply chain of the organization. however, it affects the
overall performance of the organization. Toyota has focused on the entire time of
delivery and the relevant condition of the purchase system of its products. However, it
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also helps them to grab their customers towards their brand. With the good
management of supply, chain the organization of providing a good purchase experience
to their customers and gain the satisfaction factors that help them to expand their
business and them also gain new target customers for their brand. Through the chain
process, Toyota has actual knowledge of their product that they can control the entire
process of the manufacturing process. However, with the effective control, the
organization can manage its suppliers and with the help of this methodology, the
organization is able to manage their offers that they are providing to their customers
(Khan et al. 2016). The organization can track their entire dates of supply their products,
distribution and products that they can provide the proper knowledge to their system of
organization. Similarly, the organization can reduce all of their small problems to
manage their chain of supply. The product cost of the organization can be reduced by
improving the supply chain of the organization and that helps the organization to
enhance more profitability for the brand of the organization. At the same time with the
help of managed chain supply, the authority of the organization can lead over the
competitors that help them to reduce the risk factors
The supply chain also has some disadvantages as it includes different types of the
department in the organization such as manufacturing, purchasing, planning, the
technology of information system, distribution. It generates conflicts in those
departments. At the same time, weak leadership is also focused on the disadvantage of
the supply chain. However, the benefit of the organization is difficult to account in this
way (Ruckelshaus et al. 2015).
The sea transportation methods are the best source that can mitigate the target
timelines as it is the most used method by which products are delivered. The sea
transportation has the largest capacity and the operation cost of sea transportation is
less than any other transportation. However, it is regarded as the best way that supply
can be mitigated within the timeline, as it is more suitable for carrying bulky goods for
the organization. However, other transport like road and air transportation is also used
to supply the products.
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Toyota has noticed that their brand is already famous in the region of the Middle East or
GCC countries and that is the rawness they decided to transport their brand that they
ruled over those countries. The firm has already decided to frame their business
structure and that help them to transfer their business to the region of MENA that they
can establish the Key market of them. The volume of the sales are very high, the sales
revenue budget is also positive and that and the preferable market is high that are the
advantages that they are moving their goods to those countries.
Toyota has focused on the quality of its cars and the latest technology that they are
providing for their customers. However, they also manage the overall percentage of the
cost product by maintaining their transportation cost and that affect them to enhance the
growth of the business. At the same time, the organization is also focused on the time of
delivery that helps them to attract their target customers towards their brand (Oelze et
al. 2016).
The entire risk factors of the supply chain that is involved in Toyota
It has been seen in child abuse has been noticed in the manufacturing factories of
Middle East countries that affect the business. Kids are involving those factories and
they are treated very badly in these factories. However, the working time is also long for
them and they are provided with a low wedge structure that is unethical. However, the
prior object of those organizations to save their product cost (Ho et al. 2015).
The political situation of the Middle East countries is not stable and that affect the
supply chain of the organization. However, the timeline of the supply of the product is
also affected by this political instability. At the same time the risk of international
logistics is also affecting the chain of supply such as financial, the change assessment
of the global government is also including the risk of international logistics as it affects
the shipment ship for the supply chain of the organization. At the same time the Toyota
can face some other type of risk while they introduce their product in the region of the
middle east countries such as language, culture, risk of new market, rate of exchange,
child labour, human rights, long duration of working time and legislation they can affect
their business (Martino et al. 2017).
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Recommendation to overcome the risk factors
It is recommended that Toyota should introduce their brand after accessing the political
stability of the country to where they want to launch their new product. At the same time,
they should follow that the child labour should not enhance the factory that they can
face to the human rights commission. At the same time, the marketer of the company
should analyse their market position before they launch their product. The language and
culture are well captured that they can resolve the language problem in the business
purpose.
The detailed steps required to introduce a new product range successfully
through the supply chain and the importance of collaboration in the supply chain
process.
Toyota has focused the term collaboration in its organization that helps them to
enhance their performance on the word basis. Collaboration is nothing but works
together that the entire activities of the organization can be operated with greater
efficiency. However, the organization cannot perform well without proper collaboration in
the entire department of the organization. An organization has many departments and
the working activities are depending on the level of collaboration among those of
departments. The collaboration can be held among different groups that are working for
the organization. It is regarded as the joint efforts of the working groups of the different
groups. At the same time, it is the way that makes easier to work together by providing
different scope to the individual group of the company (Porter and Kramer, 2019).
Collaboration is the essential elements behind the success of any organization as it
helps the organization to operate their work properly and effectively. At the same time,
the performance of the organization depends on the team performance and that never
comes without the activity of collaboration. The work environment of the organization
cannot be improved without collaborating the employees who are working for the
organization. The collaboration is synthesized by the cooperation of different individual
group in the organization. Different types of the group can exchange their working
information that they can interact with each other working activity. However, the
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collaboration is significant in the sense that it helps to reduce the extra workload from
the employees and that affect the overall performance of the organization. Apart from
this, the collaboration is important as it encourages employees to perform their best in
the success of the organization and make them more responsible for their responsibility
(Christopher, 2016).
Toyota has planned to introduce its new hybrid electric cars to the Middle East countries
that help them to enhance their target market in that region. The new brand of Toyota is
included with new technology that helps them to launch various new items for the
organization. At the same time, the organization is also decided to launch a range of
size that they can affect their target market. At the same time, the market analyst of
Toyota has already stated to launch market literature that they can support their sale in
the new countries.
The different strategies such as mutual learning, transforming, acquiring, retaining and
interpreting knowledge is always helpful for an organization to gain the entire
advantages of a competitive market. The organization can gather their knowledge by
the action of collaboration that helps them to enhance their performances in the overall
basis. The way of collaboration activity is always helping the organization to gather
pertinent information that helps them to interact, people, their performance that helps
the organization to deliver their product within a time limit and they can increase the
quality of their brand as the operation of the organization is highly observed by the
process of the collaboration. The competitive of the organization comes through the
mutual process of learning and training for the employees also help the organization to
increase the services of their organization and thus they can access the entire factors
that they can satisfy their customers. However, collaboration is also enhancing the self-
directed learning procedure that helps to increase the individual performance; however,
it also helps the organization to bring out the competitive advantage in the global market
(Ross, 2016).
Toyota has focused to gain satisfactory elements in order to provide their cars to their
customers. They promised to their customers to back their money if they do not
comfortable with this. However, they also promised to the customer of the Middle East
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region that they can send back Toyota’s car if they have a bad experience with their car
in the warehouse “EX Stock” in Dubai.
The timing of delivery is very important in inventory management as the reputation of
the brand is depended on this for the Toyota. However, the time of delivery can be
maintained by operating the supply chain management. Similarly, the cost and the
quality of the product are, however, depending on the management of inventory. The
productivity and the working activities should be monitored by the specific software that
they can track the delivery and purchasing dates of the product however, it helps them
to manage the delivery timing for the organization. At the same time, the quality of the
product can be enriched by educating the staff who are working in the organization that
they can use their intelligence to improve the technology into the product they are
providing for their customers. The cost of the product can be managed by the
organization by managing the stock of their product and by controlling the expenditure
of the organization. The software is used by the organization that they can measure the
stack of their products in their inventory. At the same time, the organization can reduce
the cost of the product by controlling the inventory management and that help them to
set up a marginal price for their customers.
The characteristic of the term push and pull in the process of supply chain and
the best way to manage it
The pull and push strategy is regarded as an important strategy that affects the
operation of supply chain management. The push strategy in the business is applied
when the project of the business is determined the overall demand for the product and
recognize the process of supply that is the demand of the market. However, it is very
important in the business as it provides the right timing of the entrance process of
supply products. The company is capable to predict the supply chain that which time
they launch their products in the market. However, it helps them to plan a long before to
how they launch their products and when they can do this. On the other hand, a pull
strategy is recognized as a process that denotes to minimize the stock on the hand that
an organization is always used to justify the demand of the organization. On the other
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hand, it also found that the organization is focused on this supply chain strategy that
they can fulfil the last time demands of their customers (Schönsleben, 2016).
The push strategy is used to clear the inventory from the stack of products. The prior
object of this strategy is to reduce the stack items in the inventory system that new
products can enter the inventory. However, a dedicated web page is using in the
strategy that allows a certain discount on the goods that they can reduce their stacks by
selling the goods they store in their storehouse. At the same time, the posh strategy is
using to store new items to the storehouse by providing the rewards point to their
customers that they can attract their customers to purchase to the stocked products.
The organization is using a push strategy that they can plan to launch their products on
the demand of the time (Stevens and Johnson, 2016).
The pull system of inventory management is using to introduce the new items in the
inventory that help them access the demand of the market and they determined the
overall requirements of the market that can affect the customer satisfaction. However,
this strategy is followed by the business that encourages them to wait to launch their
product as per the special demands of the market. This reason the company keeps
some stacks on their hand that they can distribute their products. However, they wait for
the future orders of the products that help them to access the future demand of the
product. To access this strategy the organization can store some raw materials in their
hand that they can use this in the future perspective.
The pull and push strategy is playing a significant role in the marketing as it helps the
organizer to when and how the inventory should be managed it can access the
demands of the market. However, to push strategy helps to reduce the stock of
inventory that helps the organization to enhance new products and run the business by
calculating the right time farming. On the other hand, pulling strategy help the
organization to determine the future demands of the customers and help to prepare
their stacks for that initial demand of the customers (De Bruijn and Ten Heuvelhof,
2018).
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Explanation of inventory data recovery process in supply chain
Inventory data is important for any company as it aids in keeping the company in its
planned budget. That is why this process is acquired by any company as a
management tool. Inventory data recovery is important for the company Toyota in order
to utilize the data of the company well. This process is undertaken as this system
maximises the chances of increasing money. The data inventory process increases the
possibilities of the Toyota Company to reach a new height. In the inventory data
recovery process, cloud computing has become one of the recent trends and it is
helping the business of Toyota to expand its business at an enormous level. Historical
data is a crucial part of every company, as well as for the company Toyota. These
historical data in the supply chain is consisting of the areas of business and real estate.
These kinds of historical data involve the witness of some individuals or some
documentary. While responding to market needs, the management of the company
needs to be agile. Because, if the management is not aware of the changes in the
market then they will not be able to supply according to the market needs. The
warehouse management system in the supply chain is important as if the inventory data
is not being stored properly then the business of Toyota cannot be improved. Future
planning for a company is very important also that they can ensure the customers that
the inventory and the products that are vowed and presented by the company can be
delivered as per the requirement. Warehouse management is one of the most important
aspects of the supply chain of any company. For Toyota, the warehouse management
should have the ability to invent some more new products that will go with the taste of
the present day customers. These new products need to have new technology include
in their products. This whole process will be successfully implemented if the warehouse
management of this company is advanced in terms. Alongside this, warehouse
management is being used in a multipurpose way for the well-known brand Toyota. This
warehouse inventory management aids in delivering knowledge about the market needs
and the choices of the customers (Beamon, 1999). That is why the company can supply
products that are required in the current market.
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Detail knowledge of logistics processes for moving goods from the
manufacturing source to the inventory warehouse in jebel Ali
As discussed above, the underpinnings of this entire report are aimed to describe the
supply chain of the well-known brand Toyota. The largest automotive manufactured
Toyota has a warehouse inventory in jebel ali. This also works a supply chain of Toyota.
They have knowledge of processing logistics in order to move goods supplied by the
manufacturer. Toyota is known as the third largest automotive manufacturer all around
the world. This company is having various modes of the transportation system. These
transports include various types of vehicles. For the logistic process, the management
of Toyota undertakes some methods that include the planning, organising and
controlling process. All these processes are implemented in order to supply the
manufactured items in the inventory with the information of the company. Some
components that this brand Toyota acquires which aids them to regulate a healthy
supply chain management. They are concentrating on developing the logistic strategy
and to improve it according to the market needs. This entire process includes a flow
system from the production of the product to warehousing of the product. At first, the
production of the product happens followed by it packaging then it goes to the inventory
then it is transported and then goes to the warehouse after this entire method the
product is delivered to the customer. In this process, the company Toyota considered
about the cost of the product, speed of delivery also before it is transferred to the
inventory warehouse in Jebel Ali (El Amran, 2007).
Comparison of various models and transport
There are so many vehicles that the company Toyota has invented according to the
market needs. These items are not only new and meet the expectations of the present
day customers. This company always have taken care of the cost of the product they
are selling and the quality of it. Moreover, they have kept track of the timely delivery
schedule as well, from the very beginning. They always have taken care of the
satisfaction of the customers of Toyota and after that, they have maximized their profits.
The maximum percentage of the customers of Toyota is from the Middle East, although
this is another fact that the brand Toyota is famous worldwide. Toyota had introduced
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the Ford in the year 2005, for the first time in history. Not only that they had kept the
pricing of this car keeping the market values in mind. Not only that, they have
introduced many other cars, such as Toyota Innova, Toyota Fortuner and the list is
huge. They also have kept a track about the potential implications from various security
checks and they are aware of the risks they are going to face is that they will not be able
to meet the needs of the market. Recently, Toyota Company has decided to launch its
multimodal transportation system in the Philippines, India and Bangladesh. This
decision is justified as by obtaining this step this company will be able to obtain more
customers from the huge population of all these three countries. This is how they will be
able to expand their business in the global market (Mitra and Kumar, 1999).
Recommendation for the decision making purpose
For a huge company like Toyota for setting up the manufacturing site will not take more
time. As they will be able to produce more labours for this process to fulfil. For this
purpose, Toyota has decided to track the cargo and the DXB of the manufacturing site
using GPS. they will be using GPS so that they can have control over 6the time and
delivery process.
Recommendation
It is recommended that the political stability of India is quite good than Bangladesh and
Philippines that help Toyota to launch their organization and the financial growth is also
regarded as strong attributes that help them to access their target market. It also
recommended that Toyota could access more target customers for the organization if
they focus on the large market of India as the country developing their progress with
efficiency, however, the demand of the case that is Toyota provided is increasing in
India. However, the Jebel Ali Free Zone and AlFutaim are the deters found in Dubai to
whom the Toyota supply their electric vehicles. The infrastructure of India is more
preferable that Toyota is recommended to transfer their goods to the country. In the
technological context, India is far better than Bangladesh and Philippines that is the
reason Toyota is recommended to launch their new brand of car to the market of India
that helps them to enhance desirable profit and they can gain their advantages. It is also
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