Toyota Supply Chain Management - 1575 Words

SUPPLY CHAIN MANAGEMENT To begin I should define a core competency as this is related with the Supply Chain in my review, so first, what is a core competency? According to Fitzsimmons (2012), core competency is something that the company does so well that it provides the company a competitive advantage. Core competency gives the company hard-to-imitate advantage. One of the Toyotas core competencies is their production system which is known as Toyota Production System (TPS). This is consists of Lean manufacturing and Just-In-Time (JIT) Production. Lean Manufacturing is the production practice in which it is focusing on the elimination of waste and continuous improvement over long-term. Lean Manufacturing has been proven to be†¦show more content†¦In this case, brand management as one of the Toyotas core competencies must be exploited so that Toyotas image can be repositioned in the customers mind. Toyota can use marketing strategy such as repositioning strategy to reposition itself as an innovativ e and user-friendly auto-maker rather than high quality auto-maker. Keep in mind though, Toyota has overcome this negative view by American and worldwide consumers and has streamlined its supply chain by integrating more building of vehicle parts within the United States. Toyota is facing fierce competition in the automotive industry. Competition is increasing with new entrants are trying to enter the automotive industry. This new entrants can be automotive company from Europe, China and South Korea. Direct competitors of Toyota are Honda, General Motors, and Fords. Besides that, Hyundai has become serious threat for Toyota as well. According to Can anything stop Toyota (2011), Hyundais vehicles cost less than Toyota while it has more power compared to Toyotas vehicles. In the luxury market segment, Toyotas Lexus lost to BMW in terms of sales (Business Week 2009). Technology innovation has become major force in the industry. This requires those automotive companies including Toyota to catch up with their competitors or otherwise, they will lose their market shares. Recently, the raising price of fuel and pollution has become a major concern. Therefore, theShow MoreRelatedToyota and Volkswagen supply chain management4882 Words   |  20 Pagesof the Toyota and Volkswagen. It also explains about their supply chain relationship of those manufacturers. It also gives the advantages and disadvantages of those companies. I have also compared the strategies of Toyota and Volkswagen. I have collected some details regarding the future scope and threats for both the manufacturers. I have given some general statistics of both the companies. Then I have given some future strategies of those concerns. Definitions: Supply chain: Supply chain encompassesRead MoreProduct Supply Contracts : Toyota Essay1484 Words   |  6 PagesProduct Supply Contracts One factor that adds to the success of Toyota’s supply chain is their relationship with their suppliers and how they do business with those suppliers. Toyota does not simply give their supply contracts to the highest bidder; instead they work incredibly closely with their suppliers so that they can get the highest quality products possible. Toyota uses long-term, just-in-time contracts with all of their suppliers (Winfield Hay, 1997). Toyota does not engage in any kindRead MoreEssay Operations Improvement Plan1639 Words   |  7 Pages Executive Summary Toyota is one of the leading vehicle manufactures in the world and has faced some challenges throughout the years. This paper will discuss a key issue that Toyota has faced and how they can utilize communication software to improve the business relationship between supplier and Toyota. 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These include its supply chain management, inventory management and operation management. In each item, it discusses the faced by each and provides appropriate measures that should be employed to make such process a success in the company s operations. A company that is using the three elements appropriately makes its operations easy alongside improving its chances profit making. Therefore, such items are significantRead MoreToyota944 Words   |  4 PagesKanban and respect for employees together with expedited problem solving approach (automated error correcting) has enabled the company to pursue lean innovations. Lean manufacturing has enabled Toyota to successfully develop its production systems to include new types of designs. The principles enables Toyota to manage its value stream, identify customer value, implement a â€Å"pull† approach that ropes the flow of scarce materials in operations and th e overall development of production capability. TheRead MoreGlobal Nature And Systemic Impact On The Firm s Financial Performance968 Words   |  4 Pagesfinancial performance, the supply chain arguably faces more risk than other areas of the company. Risk is a fact of life for any supply chain, whether it’s dealing with quality and safety challenges, supply shortages, legal issues, security problems, regulatory and environmental compliance, weather and natural disasters, or terrorism. There’s always some element of risk. Companies with global supply chains face additional risks, including, but not limited to, longer lead times, supply disruptions causedRead MoreToyota Case Study Analysis1087 Words   |  5 PagesCase Assignment: Toyota Case Study Summary Although there is no way to predict the next step for organizations in the future, Toyota, located in Japan, was established in 1937 and began making vehicles for the military during World War II and has been successful in keeping up with the changes. Nevertheless, researchers have attempted to adapt the â€Å"product line† method of leadership in order to obtain the same results of business success. The success of a business is in the organization’s behaviorRead MoreThe Supply Chain Management System859 Words   |  4 PagesSupply Chain Management is defined as the oversight of materials, information, and finances as they move in a course of action from supplier to manufacturer to wholesaler to retailer to consumer. It includes numerous activities such as coordinating and integrating these flows both within and amid companies. By directing the supply chain, companies are able to cut excess fat and provide products faster. This is done by keeping tighter control of int ernal inventories, internal production, distributionRead MoreSupply Chain Management and Fresh Connections1350 Words   |  6 Pageswhat are the most important aspects of Zara’s approach to IT as an enabler for effective supply chain management? Are there approaches applicable and appropriate anywhere? - What benefits does Inditex/Zara get from its supply chain infrastructure? How difficult would it be for a competitor to acquire these same benefits? - What current/potential weakness (if any) do you see in Zara’s infrastructure, supply chain and IT strategy? ï‚ § Vandelay Industries Inc. - Why has R/3 been so successful in the