Running Head: SCM OF TOYOTA COMPANY 1

Supply Chain Management

[Name]
[University]
[Date]
SCM OF TOYOTA COMPANY 2

Table of Contents
Introduction......................................................................................................................................3
Real Business Case of Toyota Company.........................................................................................3
Analysis of Supply Chain Management of Toyota Company.........................................................3
Evaluation of e-commerce Model...................................................................................................4
Recommendation for Effective Supply Chain Management...........................................................5
Evaluate How Supplier Relationship Management as Best Practices Can Help the Toyota Coma
pony to Enhance Its Competitive Advantage..................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7
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Introduction
Implementing effective supply chain control in cutting-edge businesses can trade their
competitiveness. This is a surefire way to provide aggressive advantage thru the application of a
development in performances. Companies do not compete within the manner, but on the size of
the deliver chain (Carvalho and Ishikawa, 2016). Supply chain management refers to controlling
the waft and movement of products and offerings from the area of starting place to the factor of
consumption and consists of the following activities: Storage of raw materials and stock
management of labour in progress. Features include design, planning, implementation,
manipulate and tracking of various sports within the deliver chain that is achieved to increase the
net value of a supply, coordinate demand and supply of the organisation, and create
infrastructure within the Competitive employer. The case takes a look at the Toyota Company
has been decided on for the cutting-edge examine.

Real Business Case of Toyota Company

Toyota has been the protagonist of adjustments inside the quite aggressive automobile
enterprise for years. The employer has been capable of enhancing its deliver chain operations.
This has made it easier for businesses to transport merchandise from shops around the world to
numerous stores (Potter and Wilhelm, 2019). The organization has strengthened supply chain
management as part of the overall investment approach, which allows businesses to attain global
attain. The implementation of supply chain management in its activities has facilitated the
formation of huge dealer association agencies based on the principles of shared expertise and
consider, information change, traits and development. This planned alliance has helped
organizations maintain their productiveness low through disposing of diverse limitations in their
work, which includes delays in shipping, waste, and mismanagement of information. The
simply-in-time system helps improve corporate governance and inventory control via allowing
real-time monitoring whilst eradicating postponements and losses associated with the extra
account (Balasubramanian and Shukla, 2017).

Analysis of Supply Chain Management of Toyota Company

In the late 1990s, when the level of competition increased and the globalization model
was widely recognized in different companies, organizations were faced with acquiring materials
and services from other localities and obtaining the same elsewhere. Interest in matters, legal
time and affordable costs are increasing (Balasubramanian and Shukla, 2017). The manager
notices that competitiveness is not only competing with other fields of activity but is also linked
to the goal of improving supply chains and increasing competitiveness. Since then,
understanding and adopting supply chain management practices has become a prerequisite for
companies wishing to remain competitive and profitable in the business environment around the
globe.
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Supply chain management with several studies to determine its role as the main engine
for gaining competitive advantage has helped managers find out why important roles can be
recognized and valued. Work with key stakeholders in the supply chain and the broader business
environment. Adopting the supply chain can, for example, ensure collaboration between various
key players in any business operating environment. The whole supply chain (Tiwari et al., 2018),
in addition to ensuring the performance of each organization, such as customers, suppliers and
operators, can be significantly improved.

Supply chain management is important for organizations that want to create sustainable
competitive advantages for a variety of products and services in a busy commercial market. This
enables organizations to distribute goods and services at the right time, in the right quantity,
time, and quality, price or cost, to meet needs of consumers as planned, to improve sales
efficiency and, ultimately, and profitability.

Evaluation of e-commerce Model

Toyota has accomplished worldwide reputation and importance thanks to the
manufacturing system of the Toyota Company, that could produce a selection of vehicles and
components quickly and at a distinctly low price. Over the beyond a decade, Toyota has to turn
out to be the most important vehicle producer inside the international in phrases of sales and
production. This can be defined by way of the utility of e-trade techniques and QR generation in
organizations (Kumar and Rahman, 2016). The adoption of e-commerce methods inside the
enterprise can store diverse automobile businesses, growth profitability, and even increase
productivity. The e-trade platform has enabled businesses to enhance their supply chain control
operations and transactions among agencies. Toyota has adopted Covisint as an international
online marketplace for various automobile products, making it easy to share supply chain records
with various individuals.

Since its founding inside the early 19340s, the company has performed a decisive
position in increasing its international commercial enterprise, however, it has the following
capabilities: Product recollects and exertions disputes have enabled corporations to boom their
potential and efficiency in choice-making (Hugos, 2018). The introduction of e-commerce
methods, which includes online auctions and paperless transactions, has helped agencies lessen
their operational fees and growth their efficiency, in addition, to fortify their relationships with
organizational management. With various buyers and suppliers inside the enterprise.
Technologies together with the QR generation followed in his paintings have helped businesses
enhance their information management capabilities by using permitting 2D barcodes to track
inventory of many parts of the organizational supply chain.

The corporation has followed Convent as an enterprise version for vehicle manufacturers
to hook up with manufacturers, clients and suppliers of numerous important raw substances. This
platform permits the organisation to compete with other huge vehicle producers for clients based
on the subsequent beliefs: Price, transport time or even the quality of products presented
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(Balasubramanian and Shukla, 2017). The Production System of the Toyota Company, which
changed into developed by the organization within the past due Nineteen Fifties, played a key
position in enhancing the operations of the enterprise, reflecting the ideals of a negative
organization, in which all operations aimed at triple implementation. The manufacturing machine
of the Toyota Company is primarily based on the Jidoka idea associated with timely production
and human touch automation (“Toyota Motor Corporation Official Global Website,” 2020). The
Jodika concept enables to ensure that there are no defects thru the manufacturing procedure and
in the end guarantees that no organizational product is broken. Timely manufacturing is
associated to manufacture what you want, once they want it, once they want it, and supporting
their enterprise to use assets more effectively.

Recommendation for Effective Supply Chain Management

The strong belief of the company is playing its vital role in the success that efficiency
alone is not an assurance of quality, which has forced the administration to reconsideration the
value given by management to the organization (Sardana, 2016). But as people who accumulate
wisdom and can do the same thing in everything they do. Companies must not stop investing HR
as the main engine of process innovation. This is because it is the only way organizations can
effectively manage human resources, which has been the biggest driver of success for many
years. Also, if they take the initiative to tailor their business or product to the level of complexity
that native employees can manage, rather than tailoring their car to local needs, reinforce their
local setting of the ideal business. This will make it easier for companies to expand their
activities in new markets.

Evaluate How Supplier Relationship Management as Best Practices Can Help

the Toyota Company to Enhance its Competitive Advantage
The worldwide supply and demand markets have prevented the companies from
predicting the development and growth of processes and operations. Companies are forced to use
the following practices: Outsourcing, acquiring, and even managing suppliers makes it strategic
and sustainable while addressing the increasing needs of the industry, including Short life cycles
of the products, social pressure on corporate social responsibility, and increased consumer
demand (Hatani, 2017). The relation management of the suppliers involves the creation of shared
value that can only be achieved through practices such as Trust, open communication, and
cooperation between the various major suppliers of the company. Toyota can understand the
impact of suppliers on operations of the business understudy (Fujimoto et al., 2019). Therefore,
management aims to protect the interests of suppliers, rather than involving suppliers in an
independent relationship.

Toyota recognizes that all shareholders are strategic and seeks to overcome them through
the Toyota Way. However, in key business areas, such as draw boundaries between various
suppliers and R&D who work together as strategic development partners (Khan et al., 2016). The
company uses evaluation tools of the suppliers, such as key performance indicators, to classify
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which suppliers are significant and which suppliers are included in the development program of
the supplier. Toyota invests heavily in close relationships with its suppliers to achieve various
objectives, including getting critical financial support for the complex.

Supplier relationship management also helps companies reduce business transaction costs
by integrating operations with key suppliers, and companies need to reduce costs so they can
focus on value creation and product differentiation (Hfeda et al., 2017). Companies that are
trying to block different suppliers have adopted progressive systems that share the different
benefits they receive with suppliers (Supranee and Rotchanakitumnuai, 2017). The organization
uses production system of the Toyota Company to manage production and logistics operations,
interact with customers and suppliers, and ensure that the organization does not experience
downtime because the various key participants can interact in real-time. Other technology
systems, such as ERP and SAP, allow organizations to integrate various departments in
organizations and external participants through the accurate exchange of information and other
important resources.

Conclusion
Toyota is now one of the world model organization that has revolutionized the concept of
supply chain management as an organization with many managers (Zhang et al., 2019).
Integrating supply chain management into any company can help maximize value for customers.
This is important for developing a competitive advantage. By applying technology to company
work, players can easily communicate with each other. Because of the various products that the
organization produces have to go through a lot of work before reaching the final consumer, they
need to make sure that all of these players pursue the same goal. This not only provides
interconnection between players, but also increases overall business efficiency, simplifies all
operations in the product flow, and reduces divine behaviour. Because the automotive industry is
driven by consumer needs, not by increasing demand, supply chain operations must be adjusted
to the expectations of different participants. Car companies need to improve their supplier
management culture, because they are crucial to success in the coming years, to help manage all
innovative resources and practices from the start tumbling facts.
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References
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