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Case Studies in Information Technology : Toyota Motor Corporation of Australia’s (TMCA) Supply Chain

Case Studies in Information Technology : Toyota Motor Corporation of Australia’s (TMCA) Supply Chain

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Published by Hazman Aziz
The purpose of this case study is to analyse Toyota Motor Corporation of Australia’s (TMCA) supply chain. It also focuses on how Information Technology (IT) is currently being utilized to support its operations.

The history of Toyota since its introduction into Australia is covered in detail, followed by a thorough description of the organisation’s current business and its context. Within the case detail description the supply network is also analysed.

These details include the description of the upstream and downstream entities, and how procurement and selling arrangements are done within the organisation. Material and financial flows, logistics and shipping arrangements are also reviewed. Additionally details on the current involvements of the organisation with any e-Marketplace are being highlighted.

Within each of the subcategories of the supply chain being discussed, each of them has been provided with information of how IT is being utilised to support and improve legacy supply chain operations. The strengths of the supply chain are being highlighted, while discussing its weaknesses derived from the previous information.

In summation there is no perfect solution for any supply chain, as all legacy systems have their own weaknesses. With the implementation of IT though, a large scale company can come close to reaping the benefits of a solution that aims at excellence, but not perfection.
The purpose of this case study is to analyse Toyota Motor Corporation of Australia’s (TMCA) supply chain. It also focuses on how Information Technology (IT) is currently being utilized to support its operations.

The history of Toyota since its introduction into Australia is covered in detail, followed by a thorough description of the organisation’s current business and its context. Within the case detail description the supply network is also analysed.

These details include the description of the upstream and downstream entities, and how procurement and selling arrangements are done within the organisation. Material and financial flows, logistics and shipping arrangements are also reviewed. Additionally details on the current involvements of the organisation with any e-Marketplace are being highlighted.

Within each of the subcategories of the supply chain being discussed, each of them has been provided with information of how IT is being utilised to support and improve legacy supply chain operations. The strengths of the supply chain are being highlighted, while discussing its weaknesses derived from the previous information.

In summation there is no perfect solution for any supply chain, as all legacy systems have their own weaknesses. With the implementation of IT though, a large scale company can come close to reaping the benefits of a solution that aims at excellence, but not perfection.

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Published by: Hazman Aziz on Jun 07, 2009
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University of WollongongIACT422Case Studies in I.T.
Name Student Email
Joseph Baez 2387256 jsb16@uow.edu.auNurhazman Abdul Aziz 2666182 naa925@uow.edu.auTee Young Chew 2524272 tyc95@uow.edu.auHoh Whay Loh 2400431 hwl97@uow.edu.auCong Xue 2809217 cx850@uow.edu.au
Course Coordinator:
Dr. Aditya K. Ghose
Tutorial:
Wed 9:30am to 11:30am
Document:
Group Case Study
Date Submitted:
19th August 2005
 
Executive Summary
The purpose of this case study is to analyse Toyota Motor Corporation of Australia’s(TMCA) supply chain. It also focuses on how Information Technology (IT) is currentlybeing utilized to support its operations.The history of Toyota since its introduction into Australia is covered in detail, followedby a thorough description of the organisation’s current business and its context. Withinthe case detail description the supply network is also analysed. These details include thedescription of the upstream and downstream entities, and how procurement and sellingarrangements are done within the organisation. Material and financial flows, logistics andshipping arrangements are also reviewed. Additionally details on the currentinvolvements of the organisation with any e-Marketplace are being highlighted.Within each of the subcategories of the supply chain being discussed, each of them hasbeen provided with information of how IT is being utilised to support and improve legacysupply chain operations. The strengths of the supply chain are being highlighted, whilediscussing its weaknesses derived from the previous information.In summation there is no perfect solution for any supply chain, as all legacy systems havetheir own weaknesses. With the implementation of IT though, a large scale company cancome close to reaping the benefits of a solution that aims at excellence, but notperfection.
 
Table of Contents
Introduction
........................................................................................................................1
History of Toyota Australia
..............................................................................................1
TMCA Timeline
.................................................................................................................2
Toyota Australia’s Current Business
.............................................................................3
Business Context
.............................................................................................................5
The basis of Toyota Australia’s supply network
..........................................................7
Supplier Association
....................................................................................................7
History of Supplier Association
..................................................................................7
Effect of “knowledge sharing network” on supply chain coordination
..................8
Intra-Plant Vs Inter-Firm
..............................................................................................9
Upstream and downstream entities
.........................................................................11
Bundled Outsourcing
.............................................................................................11
Logistic Challenge
..................................................................................................12
Import of Vehicle Components
.............................................................................15
Upstream entities
...................................................................................................16
Downstream entities
..............................................................................................17
Internal entities
...........................................................................................................17
IT solution for Toyota’s overall supply chain operation.
.......................................18
IT Solution for Toyota Australia’s overall supply chain operation
.......................20
Downstream Sales Arrangements
...........................................................................22
Sales and Marketing Arrangements
....................................................................24
Financial Management Arrangements
................................................................24
Procurement Arrangements
.....................................................................................26
Kanban’ – Card System 
.......................................................................................26
Toyota’s Material & Financial Flow
..........................................................................27
B2B e-Marketplaces where Toyota Australia participates
...................................32
Logistic & Shipping Arrangement
............................................................................35
Backbone of IT Solutions
..........................................................................................38
Maximizing Information Exchange
......................................................................38
Network Structure
...................................................................................................39
The network is the company
.................................................................................41
Strength & Weakness
....................................................................................................42
Strengths
.....................................................................................................................43
Weaknesses
................................................................................................................46
Conclusion
.......................................................................................................................47
Bibliography
................................................................................................................48

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