Introduction
The Toyota production system has been integrated with the effective supply chain process. The company management has streamlined the lean supply chain concept in the company, and it has also emerged as a top model of the supply chain. The purpose of the company is to make the flow of products smooth, consistent, and efficient, and through this model, the company management always intends to justify it. Interestingly, an integral part of the Toyota supply chain process is the value stream mapping.
Toyota Supply Chain Model (Descriptive Model)
The supply chain management process in the Toyota company is integrated. The company is currently using the descriptive supply chain model, which is based on the activity based costing, data forecasting, system dynamics, simulation and performance metrics (Qrunfleh and Tarafdar).
Toyota Production System & Supply chain Model
In the Toyota production system, it seems necessary for the company to make the difference between value-added activities and wasteful activities. In this particular supply chain model, it has been observed that the company management streamlines the lead time status from incoming parts to finish goods. Thus, as far as the current supply chain of Toyota is concerned, there are several drivers of the supply chain model (Subedi).
Drivers of Supply Chain Models
The first driver of the supply chain model is the facility. For instance, to make the vehicle flow efficiency, the supply chain management moves vehicles from the assembly line to warehouses. In the warehouse, the quality assurance takes place. Another driver of this particular supply chain model is Just in Time inventory. The purpose is to a derive part or material, which is required in the production process. The part of the material can be derived only if there is a need in the production process (Subedi).
Supply Chain Model Process
Furthermore, this supply chain model depicts the supplier’s integration. Supplies usually stay close to the plant and use trucks to supply the material. However, based on the distance and destination, the company takes the services of third party logistic as well. The flow of the supply chain process a is quite visible in the Toyota company. First, the model demonstrates the purchasing process to acquire different supplier parts. It comes to the inbound logistics. After getting the supplier’s parts, the process moves to the assembly line. It comes under the production process of the company. After making the whole vehicle, the inspection process takes place in the supply chain model. After the inspection and quality assurance, outbound logistics starts. Dealers have these vehicles and sell to customers in different regions. Interestingly, it has been revealed that the company management has sustained its supply chain process to align with the goals and objectives of the business. In the global automobile market, it seems necessary for the company to execute the supply chain strategies and link with some new logistics trends. Due to the descriptive model of the supply chain in this company, outputs look quite predictable (Qrunfleh and Tarafdar).
Conclusion
In the end, it is to conclude that this big automobile giant is looking to sustain this particular supply chain model. The most important aspect is the integration of the production process and customer need. The descriptive supply chain models improve the intelligence of the company regarding production and supply. In the competitive business era, the Toyota company must have to make several changes with the passage of the time to link with some new supply trends. Obviously, the execution of different lean concepts is exceptional. However, when it comes to the strategic thinking, Toyota has to evaluate its supply chain to explore new regions and meet needs of customers.
Work Cited
Qrunfleh, Sufian and Monideepa Tarafdar. “Lean and agile supply chain strategies and supply chain responsiveness: the role of strategic supplier partnership and postponement.” Supply Chain Management 18.6 (2013): 571-582.
Subedi, Deepak. “Explaining supply chain as an “opportunistic coalition”.” Competitiveness Review 23.1 (2013): 41-54.
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