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Supplying Toyota

  • September 2013
  • -
  • Supplier Business
  • -
  • 106 pages

Summary

Table of Contents

Following on from the various crises of 2009, 2010 and 2011, Toyota has surged back to reclaim the title of top global automotive manufacturer (by volume). There are a series of factors supporting this recovery, but in much the same way that the supplier community assisted the OEM to maintain output during those bad years, those same companies have been integral to the company’s on-going rebound.

As the company increases output, this support has centred around managing to deliver a substantial increase in total part volumes, a difficult task after many tier suppliers had reduced production capacity in line with Toyota’s declining output over the preceding years. This has meant investing to ramp up in line with output, while still developing new technologies and working with the OEM to support production of next-generation models.

The other side to the coin is that many of the preferred suppliers working with Toyota are also part owned by the OEM and further, many of those same companies rely on the OEM for most of their business, so there is a vested interest in supporting the carmaker. In some cases, the close ties between the OEM and tier suppliers has resulted in pricing designed to stifle competition, which has resulted in some supplier executives facing heavy fines and even time in prison – without a doubt, this is the darker side of automotive supply.

In addition to covering the very different strategies Toyota uses to manage these inter-company relationships in Japan and other global regions, Supplying Toyota looks at virtually every other area of supply and production, looking at how the OEM is carrying out regional expansion and the decentralization of control from the home market, through to how the Toyota New Global Architecture will affect purchasing. Additionally, the report includes an interview with Emin Atac, director, Purchasing, for Toyota Motor Europe, who talks about how purchasing is managed across the region and coordinated with Toyota Motor Corporation out of Japan.

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