TOYOTA ASSIGNMENT

1. SUPPLY CHAIN MANAGEMENT
NAME: OMKAR PATIL
FIRST YEAR MASTERS IN MANAGEMENT STUDIES
DIV: B

2. Introduction of Toyota
 Toyota was founded by Kiichiro Toyoda and incorporated on
August 28, 1937
 Headquarter is in Toyota city japan
 Toyota is the global market leader in sales of hybrid electric
vehicles
 Toyota is also a market leader in hydrogen fuel-cell vehicles
 Toyota is the largest automobile manufacturer in the world
based on 2020 unit sales

3. Business model of Toyota
Business
model
Manufacturing
Selling
Automobiles
Calty
Designee
Research
Toyota Racing
Development
Designing
Division within operation
Division
Engineering and
Manufacturing
Research and
development
sales
Financial
services

4. Drivers of supply chain
Facility • Vehicles coming out of assembly line are moved into warehouse called "Marshaling yard”
• Fitting accessories, price tag and final quality assurance takes place here
Inventor
• Just-in – time based inventory method
• Pull based system and kanban methods are followed
Transport
• Majority of transport of raw material through truck , since suppliers stay close to plant
• Finished products transported through truck or rail for transport within the country and ships for export
• Road transport is provided by third party logistic providers
Information
• Parts and master database is maintained for part name, supplier, lot sizeinformation.13 week forecasting is
given to suppliers to provide them with guidance

5. Suppliers part
Assembly parts
Inspection
Manufacturing
Inbound logistic
Outbound logistic
Dealers
Customers
Toyota supply chain management

6.  Suppliers
 Suppliers provide thousands of parts and components that go into the vehicle
 Parts and components are received from Tier 1 suppliers through inbound logistics
 Since Toyota relies on JIT it has fewer but reliable tier 1 suppliers. Egg : Denso, Bridgestone etc
 Inbound logistic
 Company establish partnership with third party logistic providers
 Company organizes many of its suppliers into clusters based on geographic location
 Parts are picked up from those suppliers by trucks on a milk route and delivered to regional cross
dock
 At cross dock, parts are unloaded and staged for each assembly plant and then loaded to trucks
which take parts directly to each plant
 After the parts are unloaded, the truck is reloaded with the corresponding empty returnable
containers
 Returnable containers flow in reverse route

7.  Manufacturing
 Toyota production system focuses on best quality, lowest cost, shortest lead time, best safety,
high morale
 Vehicles are produced at the final assembly plant from the parts provided by hundreds of
suppliers
 The plant is subdivided into shops. The vehicle is born in the body shop where the frame and
body are formed
 The body parts are stamped in the stamping shop by presses
 The body shop is where numerous robots are used to weld the body parts together
 After body being assembled, it moves to paint shop
 After painting ,it moves to final line where supplier parts are installed to make finished vehicle
 Final Inspection is done and moved to yard
 Outbound logistics
 Vehicles at marshalling yard, accessories installation, final quality assurance is done and then it
is transported it to dealers

8.  Dealers
 Responsible for selling vehicles produced by manufacturers to retail customers
 It applies “Toyota way” to manage dealers based on 3 key principles. Complete freedom to dealers to
make decisions. It helps them invest in right things to improve. Dealers become extremely proactive
because of this move. Toyota believes in joint development with dealers. It believes in organic growth
with dealers. Competition is key to improvement.
 What makes Toyota different from its competitors?
 Toyota has an earthquake resilient supply chain- An pioneering initiative
 Toyota and other Japanese automakers were forced to halt a large portion of their production both inside
and outside Japan for months after the earthquake and tsunami cut off the supply of hundreds of parts
from the country’s devastated northeast
 Toyota was taking three steps to fight supply chain risks that he expected would be completed in roughly
five years. The first is to further standardize parts across Japanese automakers so they could share
common components that could be manufactured in several locations. The second step is to ask suppliers
further down the chain to hold enough inventory perhaps a few months’ worth for specialized components
that cannot be built in more than one location, or take anti-quake measures that guarantee safety against
any tremor or tsunami. Part of the second step would involve developing technology that would provide
more options for parts and materials, such as substituting rare earths found mostly in China. The third step
to becoming more resilient was to make each region independent in its parts procurement so that a disaster
in Japan would not affect production overseas.