Supply Chain Management of Toyota

Safety stock, Just in time (business), Supply chain management

Supply Chain Management


Many researchers have pointed out the importance of Supply Chain ( SC ) and Supply Chain Management ( SCM ) in competitive environment. In this report, we will discuss about ( i ) Toyota Mortor Manufacturing North America ( TMMNA ) which is located in Erlanger, Kentucky, current supply chain position and one of its suppliers, TAC manufacturing, located in Jackson, Michigan, supplies steering wheels and air bags for TMMNA, current supply position by drawing supply chain diagram, ( ii ) the possible operational and supply chain strategies which could be used to enhance TMMNA's future performance to take competitive advantage over other firms and ( iii ) the technical and human resource ( HR ) changes that need to be made to support the implementation of these strategies. The reason why TMMNA is chosen is it is one of the leading automotive manufacturers in the world. Before we discuss it, we need to know what it SC and SCM.

Supply Chain

" Supply Chain is all the activities involved in delivering a product from raw materials through to the customer including sourcing raw materials and parts, manufacturing and assembly, warehousing and inventory tracking, order entry and order management, distribution across all channels, delivery to the customer and the information systems necessary to monitor all of the activities " ( Lummus and Vokurka, 1999 ). The function of SC might be said to the provision of goods/services required by customers and to provide appropriate form, time, place and quantity.

Supply Chain Management

SCM is a integration concept of all the value-creating elements in the supply, manufacturing, and distribution process, from raw material extraction, through the transformation process, to end-user consumption. ( Basnet etal, 2003 ). Chandra ( 2002 ) also describes SCM is a way of improving competitiveness by reducing uncertainty and enhancing customer service through creating relationship with...
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