Topics: Management, Supply chain management, Supply chain Pages: 19 (5755 words) Published: April 16, 2013
The key strategic suppliers within Toyota’s global supply
Ya-Ling Tsai
Department of Marketing, University of Stirling,
Stirling, FK9 4LA Scotland, UK
Jenkins Chen
Department of Information and Communication,Kun Shan University No. 949 Da-Wan Road, Yung Kang, Tainan County, 71003 Taiwan
Yao Jung Yang
Department of Information Management
Hsing-Kuo University of Management
No. 89, Yuying Street, Tainan, 709, Taiwan,
The expanding importance of supply chain management shows a challenge for firms to beneficially operate their supply chain partnerships. Especially, international operations must be able to resource equivalent suppliers anywhere in the world. Such thought is leading global supply chain management (GSCM) to involve thinking about the principles of the relationship between buyer and supplier.

The Toyota way is a model for making the buyer and supplier relationship efficient within GSCM. The study established by a “win-win” condition to discuss the relationship based on trust and commitment with strategic key suppliers. Dyadic firms learn new skills and rewards based on geographic and cultural borders. Toyota’s methodology of trust and commitment which was applied to gain the growth of the community and the development of the individual is expressed in many different languages.

The Toyota explores how the managerial scheme is moving towards successful GSCM. Toyota Corporation has adjusted its management to adapt all over the world. The vision of Toyota is to generate new Toyota GSCM with their way.

Keywords: Global supply chain management, Key strategic suppliers, Toyota supply chain management


Enterprise globalization has dramatically transformed the way in which products are moving around the world. These develop a new framework that is to say, a global supply chain that takes advantage of differing countries (Prasad & Sounderpandian 2003), producing a network, which includes material sourcing over the world (Klassen and Whybark, 1994). Global supply chain management (GSCM) is based on corporations exploiting the competitive advantage surrounded by the international background, which is different from the local supply chain. Globalization trade activities are inspired by the increased benefits, substantial materials, lower labour costs, and collaborations with local suppliers. For example, there is the transfer of manufacturing “know-how” and lower local taxes for global business firms who invest in other countries (Motwani et al., 1998). Strictly speaking, the global supply chain achieves a competitive advantage which produces lower costs and efficient supply chain processes and keeps up a correspondence between the suppliers and buyers.

This study seeks to explore the key strategic suppliers within Toyota’s GSCM. Indeed, Toyota has developed a unique, highly integrated and balanced management practice that influences the ability of the key suppliers to extend their global business (Emilliani, 2003). Johanson and Medbo (2004) commented that” the suppliers are also increasingly acting on a global market”, since the suppliers have been involved in product development and required to produce not only separate components but also whole modules. This research reviews the literature base and development of GSCM leading to the path that eventually shows the modern era of a holistic and strategic approach to do the global supply chain operations. Thus, this study is to survey Toyota’s GSCM in different countries in order to discuss their key strategic suppliers. Then, the attempt is to investigate the firm by connecting the theoretical argument and case study realities.

Literature Review
Global supply chain management
Globalisation is a strategy for amalgamating geographically widespread businesses to defend global compositeness and a multifaceted environment (Stonehouse, 2000). Supply chain...
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