The key to Toyota’s success would appear to be their highly effective supplier integration process that over the past 50 years has enabled the excellence of their internal “ hoshin kanri” strategic management, cross functional process based management and Toyota Production System to be shared directly with their direct suppliers.
One of the important characteristics of Toyota Japan suppliers system in terms of the inter-firm tasking portioning is that the outsourcing ratio is high not only in manufacturing but also in product development.
There is a difference in terms assembly process and the level of hierarchy in supplier.
Without bundled Outsourcing, it has first changed the internal process of the supply chain and most importantly, the number of first tier suppliers decreases and many of the suppliers ascended to the higher tiers and the hierarchy of the parts markers.
Specialises in providing a collection of functions for generic e-Businesses in e-Marketplace environments in which a single entity (usually an agent) can perform its tasks in the e-Marketplace.
Market services (value-added and core services) are horizontal , i.e., services that are used in several business domains by several business entities.
Integration service agents
Also provide a collection of integration functions for a cooperative distributed system in which a single entity (agent, component, object, etc.) can perform its tasks.
Used by several distributed entities . E.g. a brokering agent provides a capability-based integration service in the e-Marketplace.
Another type of integration agent provides view-integration, which is a service to merge and map the description of business-objects (e.g., source schemas) in the e-Marketplace supported by the business ontology into an integrated view or schema
enables suppliers to rapidly align demand and supply in the mid-to-long-term planning horizon,
allowing customers and their partners to arrive at a consensus forecast or plan.
provides alerts and notifications of demand supply mismatches and
can support a single-phase or two-phase commit planning process.
enables suppliers to align demand and supply by providing visibility to inventory status levels at multiple internal and external locations, as well as in-transit positions, enabling optimal levels of inventory.
allows partners to exchange key inventory-related information, such as demand-pull requests and target inventory levels
can be used to track supplier compliance to contract obligations such as min/max inventory levels.
exception alerts can be configured to flag any inventory-level violations.
enables suppliers to manage and track the entire purchase order lifecycle through TMCA’s supply process.
Suppliers can manage and track, in real-time, the complete end-to-end process for discrete, replenishment, demand pull and/or blanket purchase orders from order creation through shipment, receipt, invoicing and payment.
Multi-Tier Visibility Module
allows TMCA to extend their demand/supply planning, order management and inventory management workflows beyond their first-tier partners to provide visibility to the processes executed between tier two, three and four partners.
allows to monitor demand/supply disconnects and exceptions throughout the extended supply chain,
providing tools to help identify the impact of problems identified multiple tiers away.
An agent-based transport and logistics coordination system (collaborative e-market), are designed to accomplish transport and logistic coordination tasks among different automotive manufacturers in Australia.
Consist of 4 generic roles agents in supply chain:
Distribution Hub Agent
Logistics Coordinator Agent,
Framework for agent based supply chain coordination The Distribution Centers of individual automotive manufacturers will send their distribution requirement (DRP) to a Logistics Coordinator who will transform the DRP into transport and manufacturing requirements. These requirements will be broadcast to the available transporters and manufacturer’s plants so that they could work on their bids. After the bids are received, the logistics coordinator will work on a global optimized solution before committing the distribution centers.
How does the logistics optimisation works within Australia:
Based on ordered demand established, the Distribution Hub Agent calculates the distribution requirements.
pass the DRP to the Logistics Coordinator Agent by pre-defined data interface. logistics coordinator splits the requirement into manufacturing and transportation requirements.
Logistics Coordinator Agent divides the distribution requirements based on a historical knowledge base.
In this database, the records show for a product, how long it will take for the Manufacturing Plants to produce a specific quantity, and how long it will take for the Transporters to deliver as shown in Table next
The optimization searching process is to find the optimal point (see Figure 12) which with acceptable difference with that of the customer requirement (with quantity, price and due date).
If the point identified is still not acceptable, a boundary box will be defined around the optimal point to set the lower and upper limits so that a second round of bidding can be done. This process will be repeated until the solution converges.
The interest of this system is focused on improving the current logistic demand to provide customers with the fastest delivery of their vehicles.
wish to send 20 cars to a country.
not feasible for TMCA to ship the cars.
With the system, TMCA invites other automotive manufacturers to join collaborative e-logistic marketplace.
individual automotive manufacturers will submit their orders to the e-marketplace.
Together with the shipping information provided by the freight companies, the system will conduct an optimization searching process based on manufacturer’s requirements (quantity, designation, price and due-date) and the shipping details until the search has reached a optimal point when is feasible for the shipment to be made to the country or even nearby ports with the least time needed for the vehicles to arrive to their final designations.
Integrating the four solutions in a big solutions
In order to overcome the weaknesses as previously identified, the team have provide with individual solution to address each weakness.
the proposed solutions are based on open standards means that is inherently easy to modify.
designed to be flexible,
allows the stakeholders to decide on which system is to be integrated and which system to be run alone.
Additionally, exposing functionality and data as services across the enterprise also helps TMCA reduce overhead by eliminating the need for infrastructure duplication.
the messaging-oriented nature of these solutions enables the team to link sales, marketing, manufacturing, and financial applications in real-time, which improves customer service by making up-to-the-minute information accessible across our value chain.
Therefore, the team strongly suggests the implementation of the integrated solution.
$385,000.00 T otal salaries and wages $50,000.00 S ystem programmers $160,000.00 P rogrammers $60,000.00 P rogrammer analysts $30,000.00 S ystem analyst $35,000.00 Senior system analyst $50,000.00 Project Leader Salary/wages for project Team member SALARIES AND WAGES
Financial Analysis Development Costs Graph $1,035,000.00 T otal $50,000.00 Support Staff $10,000.00 Licenses $100,000.00 miscellaneous $70,000.00 Utilities $120,000.00 Facilities $200,000.00 Trainning $100,000.00 Equipment/installation $385,000.00 Salaries/wages Amount Expenses SUMMARY OF DEVELOPMENT COST
Financial Analysis Annual Operating Costs Graph $320,000.00 Total recuring costs $50,000.00 Advertising $120,000.00 Training & ongoing assistance $80,000.00 Programming support $20,000.00 Equipment/installation $50,000.00 Connectivity Amount Recurring expense SUMMARY OF ANNUAL OPERATING COSTS
Financial Analysis Sample Benefits Graph $2,150,000.00 Total annual benefits $100,000.00 Other savings $1,300,000.00 Increased sales of cars/parts $250,000.00 Reduced shipping costs $200,000.00 Efficiency and flexibility in dealing with suppliers. $300,000.00 Increased localization of parts Amount Benefits/cost saving SAMPLE BENEFITS
Cost X Threat of competitors taking advantage of similar technology and achieving similar efficiency improvements. X Additional staff to handle the system X Disruptions to staff X Attracting new suppliers X Reduction of shipping cost X Getting existing suppliers to use the system X Development/maintenance costs Minor Major Significant Categories of Cost
Benefits X Suppliers remain loyal due the range of services offered X Increasing the business’ competitive advantage X Gaining experience that would assist with future e-commerce ventures. X Efficiency and flexibility in dealing with suppliers. X Expanded sales and customer base X Increased localization of parts Minor Major Significant Categories of Benefits