Toyota Supply Chain Essays -- Business Management, Lean Manufacturing

Introduction The business environment is increasingly becoming competitive and challenging. In the recent past, manufacturers have found themselves facing the threat of dwindling profit margins due to unfortunate global events such as the 2007 global financial crisis and the on going Europe economic crisis. The need to improve operation efficiency so as to ensure current and future investment yield the highest rate of return has therefore become extremely important. Manufacturers are now actively engaged in, managing their costs, Research and Development, adopting best procurement strategies, among other Actions. While such actions might eventually lead to positive results, additional business value can be achieved through proper management of the supply chain (Waymer, Ivanaj & Mussa 2009; Krivda 2004). To support this assertion Krivda (2004) cites the findings of AMR Research Inc. According to this research, companies that have adopted proper supply chain operation and management enjoy greater performance as determined by various financial measures. Specifically, excellence in supply chain can result in relatively accurate demand forecast therefore making such companies realize higher profit margin by approximate 5%, a 15% percent lower inventory, a stronger â€Å"perfect order rating† rating of up to 17%, and a comparative shorter cash-to-cash cycle time of about 35% (Krivda 2004). Generally, a superior supply Chain is an important and unique source of competitive advantage. Its importance is especially illuminated in Multinational companies such as Toyota. Putting this into consideration, the question that now begs for an answer is whether Toyota’s supply chain is effectively serving the organization. Without a doubt, Toyota ha... .... 68-73. Womack, J., & Jones, T. D., 1996, Lean Thinking. New York: Simon and Schuster. Supply Chain Digest, 2010. Supply Chain News: Is â€Å"Lean† to Blame for Toyota’s Recall Issues? SupplyChainDigestTM , [online] Available at: [Accessed 22 December 2014]. Supply Chain Digest, 2010. Growth and Global Expansion Put Strains on "the Toyota Way" SupplyChainDigestTM , [online] Available at: [Accessed 22 December 2014]. Teresko, J., 2001. Toyota’s New Challenge. Industry week, [online] Available at: http://www.industryweek.com/articles/toyotas_new_challenge_793.aspx>[Accessed 22 December 2014]. Waymer, L., Ivanaj, V., & Mussa, L. (2009).International business: Critical considerations. Philadelphia: Lippincott Williams and Wilkins.