SCM-supply chain management of toyota.pdf

SCM

1. Supply Chain Management Of
Toyota
Group Members
Faisal Hayat
Sarmad Jalal
Salman Khan
Bilal Said
Hanif Afridi
Imstudies ,University Of Peshawar

2. The Concept of Supply Chain Management
The concept of Supply Chain Management is a
relatively new concept !
The early to mid-1990s witnessed a growing
recognition that there could be value in
coordinating the various business functions,
both:
-Within Organizations, and
-Across Organizations

3. What is the Supply Chain Management
concept?
•The Supply Chain Management Concept is that
concept that includes all activities associated
with:
i.Flow and transformation of Goods – From the
raw material stage (extraction) through to the
end user
ii.Information flows to and from the end user

4. What does the Supply Chain Concept
consist of?
•The Supply Chain Concept consists of all parties
involved (directly and/or indirectly), in fulfilling
customers’ requests. The parties involved are:
-Manufacturers
-Suppliers
-Transporters
-Warehouses
-Retailers
-Customers

5. •The Supply Chain Concept may also include:
-New product development
-Marketing
-Operations
-Distribution
-Finance
-Customer service
Supply Chain Concept

6. Types of Supply Chain Formations
Three types of supply chain configurations are
looked at. These are:
▫Direct Supply Chain
▫Extended Supply Chain

7. Direct Supply Chain

Supplier Organization Customer

8. Extended Supply Chain
•2

Supplier Organization Customer
Supplier’s
suppliers
Customer’s
customers

9. The management of the Supply Chain –
What is it?
Supply chain management, according to the
Council of Supply Chain Management
Professionals, is the:
Planning and Management of all activities
involved in the following:
-Sourcing and procurement
-Conversion
-Logistics management

10. This involves coordination, and teamwork with
channel partners such as:
-Suppliers
-Intermediaries
-Third party service providers, and
-Customers
In general, Supply Chain Management join in
supply and demand management within and across
organization(s)
Management of the Supply Chain (contd)

11. 1.Planning:
• The strategic portion of supply chain management.
• A strategy for managing all the resources that goes toward
meeting customer demand for your product or service.
• Balances aggregate demand and supply to develop a course
of action which best meets the requirements for:
-Sourcing
-Production, and
-Delivery
FIVE BASIC COMPONENT OF SUPPLY CHAIN
MANAGEMENT

12. 2. Sourcing:
•Choose the suppliers that will deliver the goods and services
you need to create your product or service.
•Develop a set of pricing, delivery and payment processes
with suppliers and create metrics for monitoring and
improving the relationships.
•Put together processes for managing the inventory of goods
and services you receive from suppliers.
BASIC COMPONENT OF SUPPLY CHAIN MANAGEMENT
(contd)

13. 3. Making: (The manufacturing step. )
•Schedule the activities necessary for production, testing, packaging and
preparation for delivery.
•Is the most metric-intensive portion of the supply chain, it measures
- Quality levels
- Production output, and
- Worker productivity
4.Delivering: ( The "logistics” portion of SCM. )
It Involves:
- Coordinating the receipt of orders from customers
- Developing network of warehouses
- Picking carriers to get products to customers, and
- Set up an invoicing system to receive payments.
BASIC COMPONENT OF SUPPLY CHAIN MANAGEMENT
(contd)

14. 5.Return: (The problem part of the supply chain. )
• Create a network for receiving defective and excess
products back from customers
•Supporting customers who have problems with
delivered products.
BASIC COMPONENT OF SUPPLY CHAIN
MANAGEMENT (contd)

15. Transportation & Logistics

16. Transportation & Logistics
•Physical movement of goods and services
•Companies need to adopt a strategic
transportation sourcing (STS) approach
•Strategic sourcing considers costs within the
total manufacturing and distribution supply and
demand environment
•Companies sometimes outsource the
transportation activities

18. Introduction
•Toyota Motor Corporation was founded in 1937
by Toyoda.
•There Headquarters are in Toyota City Japan.
•Toyota’s Corporate Structure Consists of
364,445 employees Worldwide.
•As of 2016, Toyota is the world's largest
automotive manufacturer.

19. •Toyota was the world's first automobile
manufacturer to produce more than 10 million
vehicles per year which it has done since 2012.
•Toyota is the world’s largest leader in sales of
Hybrid Electric Vehicles .
•Toyota beat General Motors and Ford In 2005
in Global Ranking.

20. Objectives
“Making The vehicles ordered by the customers in
the quickest and more efficient way; in order to
deliver the product as quickly as possible”
•To improve quality and productivity the Develop
a system Known as TPS (Toyota Production
System)

21. Suppliers
•Toyota handed some of parts to the third party
Such as leather seats , steering wheel and tires
etc to local companies they work together as a
team and develop a product.
•Through this they compensate for greater
workload and encourage their cooperation and
suppliers to work as a team .

22. •There focus is on long term relationship that
undergoes corporation and teamwork.
•This helps Toyota corporation to save time and
reduce cost to some extent.
•Production enables suppliers to maintain a
constant volume of business.

23. Procurement
•Suppliers are the partners
• They are the integral elements of Toyota
•Their suppliers are located almost 56 miles from
them
•They trained there suppliers as per
requirements.
•They always focus on mutual improvements.

24. Manufacturing
Toyota Production System Focuses On
•Best Quality
•Lowest Cost
•Shortest Lead Time
•Best Safety
•High Morale

25. Through shortening the production flow by
eliminating the waste.
Continuous Improvements are made in :
•Just in time production system
•Quality
•Waste reduction
•Leveled production
•Stable and standardize process
•Flow of correct information.

26. Distribution
•Indus Motors Company Limited, operating as
Toyota Indus, is a Pakistani automobile
manufacturer and joint venture between House
of Habib, Toyota Susho and Toyota Motors,
based in Karachi, Pakistan since 1990.
•Indus Motors is the authorized assembler and
manufacturer of Toyota and Daihatsu vehicles

27. Distribution Continues
•Toyota offers many car models.
•The Toyota dealer as a whole have
approximately 5000 outlet and 120,000
employees .
•This way, each dealer can develop deep
knowledge of all models he has to sale, and can
make an efforts to sell all cars models assigned
to him, rather than the few most profitable once.

28. Continues…
•Toyota applies to the “Toyota way” to Manage
dealers, based on three basic principles.
•Dealers are free to make independent decisions,
and Toyota can only help them to invest in the
right things to improve. Such a strategy
motivates dealers to be more proactive.
•Both the dealers and Toyota must prosper
jointly.

29. Continues…
•Toyota works with one distributors in each
country.
•Toyota markets cars in about 170 countries
through its overseas network consisting of more
than 160 importers and numerous dealers.
Overall
• China has the highest growth Market.

30. Thank You !!!