Toyota - Supply Chain Case Study

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Company Name: Toyota Motor Vietnam (TMV)
Establishment: September 5, 1995
(official openning in October 1996)
Investment capital: $US 89.6 million
Business field:
- Producing, assembling and selling Toyota vehicles
- Repairing, maintaining and selling Toyota genuine parts
- Exporting auto parts
- Hiace, Camry, Corolla Altis, Innova, Vios and Fortuner
(Locally-produced models)
- Land Cruiser, Hilux (Imported models)

- Toyota Motor Corporation (70%)
- Vietnam Engine and Agricultural Machinery Corporation – VEAM (20%) - KUO Singapore Pte. Ltd (10%)

Employees: nearly 1,400 employees (including seasonal members) Production Capacity: 20,000 vehicles/year/2 working shifts

- Headquarter: Phuc Thang Ward, PhucYen Town, Vinh Phuc
- Hanoi Branch
- Ho Chi Minh Branch
- South Center: Vietnam – Singapore Industry of Park, BinhDuong Province

1. Risk pooling
Toyota motor vietnam (TMV) has 2 warehouses to delivery cars for dealers: - Headquarter in Vinh Phuc: delivery cars for all dealers in the north and mid-Vietnam - South Center: delivery cars for all dealers in the south and west of Vietnam We know applying risk pooling is that TMV should have 1 warehouse to reduce the inventory. However, the distant between North and South Vietnam is more than 2.000km. Therefore the lead-time to supply cars for South & West dealers is too long.

2. Standardization product to reduce inventory
Toyota Motor Corporation and Toyota motor vietnam have a project which standardize the frame and chassis of the car in IMV project (In Multipurpose Vehicle) IMV project includes these cars: Innova, Hillux, Fortuner. These cars use a common frame and chassis. When the frame and chassis are standardized, the inventory of these parts is decreased. It makes the inventory cost decrease.

3. Develop long term partnership with vendor & Use vendor near by the Headquarter TMV has been sign...
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