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Supply Chain Management Of Toyota !

The document summarizes Toyota's supply chain management. It discusses how Toyota sources parts from local suppliers in a team-based approach to compensate for workload. Toyota focuses on long-term supplier relationships based on cooperation and teamwork. It also describes Toyota's just-in-time production system and continuous improvements in quality, waste reduction, and leveled production. Finally, it discusses Toyota's distribution network of 5000 dealers and 120,000 employees worldwide and its strategy of working with one distributor in each country to jointly prosper.

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Supply Chain Management Of Toyota Group Members Faisal Hayat Sarmad Jalal Salman Khan Bilal Said Hanif Afridi Imstudies ,University Of Peshawar
The Concept of Supply Chain Management The concept of Supply Chain Management is a relatively new concept ! The early to mid-1990s witnessed a growing recognition that there could be value in coordinating the various business functions, both: - Within Organizations, and - Across Organizations
What is the Supply Chain Management concept? • The Supply Chain Management Concept is that concept that includes all activities associated with: i. Flow and transformation of Goods – From the raw material stage (extraction) through to the end user ii. Information flows to and from the end user
What does the Supply Chain Concept consist of? • The Supply Chain Concept consists of all parties involved (directly and/or indirectly), in fulfilling customers’ requests. The parties involved are: - Manufacturers - Suppliers - Transporters - Warehouses - Retailers - Customers
• The Supply Chain Concept may also include: - New product development - Marketing - Operations - Distribution - Finance - Customer service Supply Chain Concept
Types of Supply Chain Formations Three types of supply chain configurations are looked at. These are: ▫ Direct Supply Chain ▫ Extended Supply Chain
Direct Supply Chain Supplier Organization Customer
Extended Supply Chain • 2 Supplier Organization Customer Supplier’s suppliers Customer’s customers
The management of the Supply Chain – What is it? Supply chain management, according to the Council of Supply Chain Management Professionals, is the: Planning and Management of all activities involved in the following: - Sourcing and procurement - Conversion - Logistics management
This involves coordination, and teamwork with channel partners such as: - Suppliers - Intermediaries - Third party service providers, and - Customers In general, Supply Chain Management join in supply and demand management within and across organization(s) Management of the Supply Chain (contd)
1.Planning: • The strategic portion of supply chain management. • A strategy for managing all the resources that goes toward meeting customer demand for your product or service. • Balances aggregate demand and supply to develop a course of action which best meets the requirements for: - Sourcing - Production, and - Delivery FIVE BASIC COMPONENT OF SUPPLY CHAIN MANAGEMENT
2. Sourcing: •Choose the suppliers that will deliver the goods and services you need to create your product or service. •Develop a set of pricing, delivery and payment processes with suppliers and create metrics for monitoring and improving the relationships. •Put together processes for managing the inventory of goods and services you receive from suppliers. BASIC COMPONENT OF SUPPLY CHAIN MANAGEMENT (contd)
3. Making: (The manufacturing step. ) •Schedule the activities necessary for production, testing, packaging and preparation for delivery. •Is the most metric-intensive portion of the supply chain, it measures - Quality levels - Production output, and - Worker productivity 4.Delivering: ( The "logistics” portion of SCM. ) It Involves: - Coordinating the receipt of orders from customers - Developing network of warehouses - Picking carriers to get products to customers, and - Set up an invoicing system to receive payments. BASIC COMPONENT OF SUPPLY CHAIN MANAGEMENT (contd)
5.Return: (The problem part of the supply chain. ) • Create a network for receiving defective and excess products back from customers •Supporting customers who have problems with delivered products. BASIC COMPONENT OF SUPPLY CHAIN MANAGEMENT (contd)
Transportation & Logistics
Transportation & Logistics • Physical movement of goods and services • Companies need to adopt a strategic transportation sourcing (STS) approach • Strategic sourcing considers costs within the total manufacturing and distribution supply and demand environment • Companies sometimes outsource the transportation activities
Introduction • Toyota Motor Corporation was founded in 1937 by Toyoda. • There Headquarters are in Toyota City Japan. • Toyota’s Corporate Structure Consists of 364,445 employees Worldwide. • As of 2016, Toyota is the world's largest automotive manufacturer.
• Toyota was the world's first automobile manufacturer to produce more than 10 million vehicles per year which it has done since 2012. • Toyota is the world’s largest leader in sales of Hybrid Electric Vehicles . • Toyota beat General Motors and Ford In 2005 in Global Ranking.
Objectives “Making The vehicles ordered by the customers in the quickest and more efficient way; in order to deliver the product as quickly as possible” •To improve quality and productivity the Develop a system Known as TPS (Toyota Production System)
Suppliers • Toyota handed some of parts to the third party Such as leather seats , steering wheel and tires etc to local companies they work together as a team and develop a product. • Through this they compensate for greater workload and encourage their cooperation and suppliers to work as a team .
• There focus is on long term relationship that undergoes corporation and teamwork. • This helps Toyota corporation to save time and reduce cost to some extent. • Production enables suppliers to maintain a constant volume of business.
Procurement • Suppliers are the partners • They are the integral elements of Toyota • Their suppliers are located almost 56 miles from them • They trained there suppliers as per requirements. • They always focus on mutual improvements.
Manufacturing Toyota Production System Focuses On •Best Quality •Lowest Cost •Shortest Lead Time •Best Safety •High Morale
Through shortening the production flow by eliminating the waste. Continuous Improvements are made in : •Just in time production system •Quality •Waste reduction •Leveled production •Stable and standardize process •Flow of correct information.
Distribution • Indus Motors Company Limited, operating as Toyota Indus, is a Pakistani automobile manufacturer and joint venture between House of Habib, Toyota Susho and Toyota Motors, based in Karachi, Pakistan since 1990. • Indus Motors is the authorized assembler and manufacturer of Toyota and Daihatsu vehicles
Distribution Continues • Toyota offers many car models. • The Toyota dealer as a whole have approximately 5000 outlet and 120,000 employees . • This way, each dealer can develop deep knowledge of all models he has to sale, and can make an efforts to sell all cars models assigned to him, rather than the few most profitable once.
Continues… • Toyota applies to the “Toyota way” to Manage dealers, based on three basic principles. • Dealers are free to make independent decisions, and Toyota can only help them to invest in the right things to improve. Such a strategy motivates dealers to be more proactive. • Both the dealers and Toyota must prosper jointly.
Continues… • Toyota works with one distributors in each country. • Toyota markets cars in about 170 countries through its overseas network consisting of more than 160 importers and numerous dealers. Overall • China has the highest growth Market.
Thank You !!!