TOYOTA SUPPLY CHAIN MANAGEMENT

Toyota Supply Chain management

Toyota Supply Chain management

Introduction

The role of supply chain management (SCM) has become increasingly important for firms like Toyota in highly competitive (mature) markets, and we have recently seen, also in economic downturns. Ketchen and Hult (2007) describe this competitive rivalry among firms as "supply chain versus supply chain" instead of "firms versus firms". A well-coordinated supply chain process is difficult to imitate for competitors since it becomes more difficult to compete on product level. Globalization and liberalization in the market place are important drivers for the growing competition together with the changing demand of the consumer.(Cohen, 2007, 129) A shift arose from a more technology-oriented view (in the past) towards a point in time where collaboration and trust become important along the partners in the supply chain. Effective management of relationships in supply chain management is a necessity in order to withstand competitive pressures and economic downturns.

The importance of supply chain management

The latest supply chain management, supply chain management publication describes a number of significant (SCM). It became clear, no clear or unified description. In particular the level of detail differences between the description. To demonstrate, Mabert and Venkataramanan (1998) described as a unit, into finished products, raw materials and goods delivered to the customer supply chain management series. This is a common 'push' start, push to the next chain of raw materials processing, and ultimately to market. Proceed in a more comprehensive designation is granted Harlan (1996) who described an association between the organization's business activities and direct suppliers, the first and second tier suppliers and customers in the supply chain, supply chain management. However, supply chain management that vague, because it leaves unclear what the purpose is to 'business activities'. Cohen and Lee (1988) described the success of supply chain management clearly. They clarified, supply chain management are related within and across a (contact) composed of the company's business activities. Days of the relevant part of the composition refers to the alignment of procurement of raw materials or suppliers, through the construction and distribution of (cross), and the success with the release of goods to retailers or customers to complete.(Cohen, 2007, 129) It becomes clear how to develop supply chain management into a broader set of strategic sourcing and logistics functions of the habits and distribution of materials management, supply chain management is known.

Global supply chains

Toyota production system, simply to shorten the time it takes to change the procedures for customer orders to vehicle delivery. Upon completion of this adjustment, the overall order of goods from a single organization, in order to shorten its production process more smoothly and made continuous efforts to continue to flow. The result is much higher than the productivity level, better value and a waste of time, cash and energy, or in the short term, the first lower costs and better products more effective. However, although previous studies is useful, it does not answer all of Toyota in Japan, considering the success of ...