Toyota's Supply Chain

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Supply Chain The concept and application of supply chain management are proactively being absorbed by multiple organizations and companies in various industries across both the local and international markets. Supply chain management is the management of supply process activities aimed at maximizing client 's value and attain a sustainable competitive advantage. The banking sector is regarded as one of the most crucial sectors in the modern local and international economies as it facilitates, dictates, and determine the movement of financial resources that are important in a given business transaction. The contemporary banking sector is evidently incorporating the practices of supply management concepts and principles in their operations. …show more content…

Notably, the trend in the latter industry is the increasing number of variants in single models and standardized components of the supply chain process. Meaning that new vehicle models can be customized to fit the needs of the clients and ensure continuous development and supply of new models to satisfy the demand. Toyota Company deals with the manufacture and distribution of motor vehicles; they developed premier and cost-effective supply chain. The chain management was designed to cut costs and lower both consumer-related prices to the lowest level possible. The introduction of the supply chain concept by Toyota Company significantly reduced production costs while maintaining quality, delivery, and customer satisfaction (Matsuo, 2015). Thus achieving the objective of supply chain management of ensuring production "right product" at the "right price" and "right place" to satisfy the need. Conclusively, the supply chain management concept initiated by Toyota Company was inclusive, robust, and integrated thus ensuring the interest of the company, customers, and industry stakeholders are …show more content…

The company has partnered with close to two hundred different suppliers of essential products, material, and services that are significant in the productivity and long-run consumer satisfaction.
Flow of Goods to Consumer The company deploys the just-in-time concept as part of the supply chain management practices that help minimize the cost of production and increase efficiency in the production line. The Toyota production system combines the lean production system and socio-technical systems to maximize output and ensure consumer products are available close to the customer. By engaging and subcontracting dealership lines that will allow customers to access Toyota products.
Parts of the Supply Chain The various techniques and systems used by Toyota Company to manage and monitor production lines, supply, and consumer satisfaction are immense. The lean production system is deployed to improve efficiency and lower cost of production, thus reducing the value of the final product to the customer. Operations and production efficiency are monitored by state of the art types of equipment that are semi or fully automated to detect technical glitches and malfunctions in the systems (Jacobs, Chase & Lummus,

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