Profiles of Ford Motor Company and Toyota Company

Topics: Toyota, Ford Motor Company, United Auto Workers Pages: 15 (4248 words) Published: January 27, 2011

• Describe and critically analyze the supply chain management practices employed by both of these companies. • Are they involved in strategic alliances with major trading partners? If so, how and for what purpose? • What strategies do they apply to procurement and outsourcing? • What challenges and risks do they face internationally? How does each attempt to overcome these challenges? • Compare how these organizations are incorporating sustainable(green) strategies in their supply chains? • Does either or both of these companies derive a competitive advantage in their industry from the management of supply chain activities? Provide evidence for your argument.


Supply Chain Management of Toyota - 2 Weeks Ago
Toyota Motor Corporation (Japanese: トヨタ自動車株式会社, Toyota Jidōsha Kabushiki-gaisha?, TYO: 7203), LSE: TYT, NYSE: TM, commonly known simply as Toyota and abbreviated as TMC, is a multinational automaker headquartered in Toyota, Aichi, Japan. In 2009, Toyota Motor Corporation employed 71,116 people worldwide (total Toyota 320,808).[3] TMC is the world's largest automobile manufacturer by sales[4][5] and production.[6]

The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his father's company Toyota Industries to create automobiles. Three years earlier, in 1934, while still a department of Toyota Industries, it created its first product, the Type A engine, and, in 1936, its first passenger car, the Toyota AA. Toyota Motor Corporation group companies are Toyota (including the Scion brand), Lexus, Daihatsu and Hino Motors,[7] along with several "non-automotive" companies.[8] TMC is part of the Toyota Group, one of the largest conglomerates in the world.

Toyota Motor Corporation is headquartered in Toyota City, Aichi and in Tokyo.[9] In addition to manufacturing automobiles, Toyota provides financial services through its Toyota Financial Services division and also builds robots.

Minimizing supply chain costs
while keeping
a reasonable service level
customer satisfaction
on time delivery, etc.

Right product
Right price
Right store
Right quantity
Right customer
Right time
Higher profit
Organized suppliers into functional tiers
First-tier suppliers: worked together in a product-development team Second-tier: made individual parts
Encouraged cooperation and communication among first-tier suppliers Cross- sharing of personnel through
Toyota sending personnel to suppliers to compensate for greater workload Toyota transferring senior managers to suppliers for top positions SUPPLIERS
“market price minus” system, not “supplier cost plus” system Value analysis reduces costs
Production smoothing enables suppliers to maintain a constant volume of business Focus is on long-term relationships that underscores cooperation, teamwork Procurement
Suppliers are the partners
Suppliers are the integral elements of Toyota
Located within 56 miles radius
Security to the suppliers for guaranteed order
gradual mutual improvement, rather than price through bidding as a way to choose a supplier Trained suppliers as per requirement

Suppliers partnership hierarchy
Kaizen and learning
Joint improvement activities
Information sharing
Compatible capabilities
Control system
Interlocking structure
Mutual understanding and trust

Managing suppliers
Suppliers are extensions of Toyota
Care and develop as own associates
Long term partnership
Tier structure : levels of responsibility
Strict cost target and timing
Integrated system (JIT)

Purchasing challenges
Normal expectation : 3 to 4 % price reduction per year after model year launch Meet best price with Toyota quality
Trim master goal : 30% price reduction for new...
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