TOYOTA CASE STUDY 5
Running head: TOYOTA COMPANY CASE STUDY 1
Toyota Company Case Study
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Toyota Company Case Study
Every company is faced with several challenges which hinder its success across many operations it does. A stable system is usually advisable to reduce incidences of the missus, especially in supply chain management. The department acts as the central focus which gives every industry its reference point especially about activities which it engages in. Besides, manufacturing and supply-chain management on most “leans production” system must portray a successful operation approach in attempts to curb all the problems that may arise. This paper focuses on discussing the case study of Toyota’s overstretched supply chain as well as the recommendations which are pertinent in building the system into a unified whole.
The origin of the Toyota Problem
The origin of the Toyota problem came from the suppliers. After several authors made massive confusion in writing about Toyota in the book, “The Machine that Changed the World” about its innovations in manufacturing, several issues came up in the global market share. The target became “totally irrelevant to most customers” as the whole process was seen to be driven by ego. Similarly, most suppliers were not well equipped with a deeper understanding of Toyota culture.” However, as the rate of Toyota vehicles increase, a demand for a large renewed emphasis on quality on control became a major concern. This never materialised as anything was allowed to surpass the other in terms of quality and other pertinent characteristics. Overall, the nature of some of the electronic industries provided a link to the origin of some problems especially through their operations in a complex web.
The supply chain best practices that Toyota uses that have come under scrutiny recently
Revolutionized Automotive Supply-Chain Management
Toyota Company also revolutionised the automotive supply-chain management through anointing certain suppliers to act as the sole source of specific components (Munson, 2015). Similarly, close collaboration was realised based on a sense of mutual benefit and long term partners. Conversely, in most Western carmakers awards on short contracts or in-house were given to the lowest bidders. As a result, Toyota and its suppliers realised massive achievement within the recommended time in delivering its components to most of the assembly plant. The approach was eventually adopted by most big car firms such as Ford which now operate similarly.
Sourcing Suppliers Strategically Amidst Proper Collaboration
Toyota Company after releasing the sources of its problems opted for strategic sourcing of customers. This practice is the heart of every successful supply chain management. However, through additional collaborative elements to the sourcing process leads to the production of better results. Collaboration also acts as the heart of every supply chain management (Li & Maani, 2017). However, taking the sourcing beyond the purchasing department for the engagement with suppliers in incidences of decision-making process requires keen scrutiny.
Healthy Supplier Relationships
The success of a company depends on the nature of the relationship that exists within its operation sectors especially with the suppliers. Toyota Company maintains a real connection which is cultivated on several ongoing within its parameter for a finished deal. The best relationship between the supplier and the company depends on the communication strategy deployed between the buyer and seller.
Recommendations
Identify Innovation Partners
Toyota Company should identify the most promising partner. All segmentations of suppliers must act as the foundational skill in the innovative process. The company needs to have a variety of suppliers who are segmented in different ways within several different criteria.
References
Li, A., & Maani, K. (2017). A supply chain paradox. In 29th International Conference of the System Dynamics Society, Washington, DC.
Munson, C. (2015). The Supply Chain Management Casebook: Comprehensive Coverage and Best Practices in SCM. Pearson Education.