Toyota Supply Chain Essays -- Business Management, Lean Manufacturing

IntroductionThe business environment is increasingly becoming emulous and challenging. In the recent past, manufacturers sport open 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 scotch crisis. The need to improve operation efficiency so as to ensure current and future investment yield the highest rate of return has therefore suffer 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 coercive 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 enjo y greater performance as determined by various financial measures. Specifically, uprightness in supply chain can result in relatively accurate demand forecast therefore making such companies realize higher(prenominal) profit margin by approximate 5%, a 15% percent lower inventory, a stronger 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 Toyotas supply chain is in effect 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 Lean to Blame for Toyotas Recall Issues? SupplyChainDigestTM , online Available at Access ed 22 December 2014.Supply Chain Digest, 2010. Growth and Global Expansion Put Strains on the Toyota WaySupplyChainDigestTM , online Available at Accessed 22 December 2014.Teresko, J., 2001. Toyotas New Challenge. Industry week, online Available at http//www.industryweek.com/articles/toyotas_new_challenge_793.aspxAccessed 22 December 2014.Waymer, L., Ivanaj, V., & Mussa, L. (2009).International business Critical considerations. Philadelphia Lippincott Williams and Wilkins.