Toyota Supply-Chain Process Of Toyota's Supply Chain Management Process
SUPPLY CHAIN PROCESS:
Toyota uses Toyota Production System (TPS) as its Supply chain management strategy. The TPS is based on lean manufacturing and Just in time philosophy.
The Supply chain process basically can be described through these three basic principles
1. Toyota uses Just In Time (JIT) philosophy for demand forecast and planning. Toyota plans its capacity by eliminating its inventory to an optimum level. In order to achieve this strategy the company heavily focuses on the pull view system. Thus, the main objective of IMC is continuous improvement in achieving its objectives
2. IMC implements Lean philosophy which aims at achieving the elimination of waste and providing the best customer care as this philosophy is based on pull view the elimination of excess waste is the main and primary target for the organization. Their JIT has granted them with a competitive advantage of not storing huge amount of stocks in their warehouses as they only acquire parts when actually the need arises. As per their philosophy the new stock is only procured when the old one has finished. Thus this has made a large reduction to their warehouse cost.
3. The main components of JIT system of Toyota are quite helpful in solving their problems that are pull based production in Kanban, Total Quality Management, Waste elimination, Inventory reduction by the involvement of suppliers in the process of planning, constant improvement, Improvement of their machinery and their focus on overall
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