Toyota

Inbound logistics Operations that transports parts from local

suppliers to the local plants Toyota Local Inbound Logistics

Parts to be transported from the suppliers in an efficient and timely manner.

Toyota’s Inbound logistics can be best described as a logistics network.

The Network Logistics model enables Toyota operate a very efficient and effective inbound logistics operation.

TOYOTA’S INBOUND LOGISTICS

Toyota’s Network Logistics Model

It’s done once per month and is based on the next production month plan.

Creation of logistics route plan to transport parts from hundreds of suppliers to multiple manufacturing plants is a complex process.

What all the route planner needs to know?? Optimizing cubic space of each truck by avoiding “blowouts”. Toyota’s emphasis is always in combining the talents of human

beings & power of machines. It doesn’t rely upon computer system alone.

Routes would vary when either there is a major change Production or when there is a new supplier.

E.g. of Toyota’s Route planning. Implementing alternate contingency plans in the crisis in order to

keep the parts flowing.

Route Planning

“ Parts pipeline” is defined as all parts that have been ordered from a supplier and have not been unloaded at receiving plant.

Its important for Plant production control personnel to understand the status of all parts in pipeline.

Toyota uses variety of methods to track parts throughout the pipeline. EDI ( Electronic Data Interchange) Kanban bar code label Advance Shipping Notice(ASN)

Pipeline database is important whenever there is a crisis situation such as parts shortage, short shipment or transportation delay.

Toyota’s Pipeline management

OVERSEAS INBOUND LOGISTICS

Product Distribution.

Concept of Vanning Center.

Long Lead Time Pipeline Management.

Mutual Benefits from a Partnership.

VANNING CENTER

Vanning Packing Process

RISKS INVOLVED

Long Lead Time

Parts shortage would require a part to be unloaded prior to its scheduled time.

TAPPING PROCESS Used to describe the process for locating a

container.

Negative impacts

LONG LEAD TIME PIPELINE MANAGEMENT

Pipeline Management is important for all parts.

Long Lead Time parts have a supply lead time of 3 – 6 weeks.

Toyota has developed this system to track changes with respect to vehicle specifications on a daily basis.

MUTUAL BENEFITS FROM A PARTNERSHIP

Toyota partners with a supplier or logistics provider.

Toyota’s partnership with

TCI – Transport Corporation of India

Learnings of TCI from Toyota.

Product distribution Different distribution flow in Europe and

North America Toyota uses multiple 3PL providers Rail roads, common carriers and trucks Transports vehicles, goods and raw materials Multiple Manufacturers – cost effectiveness

OUTBOUND LOGISTICS

NORTH AMERICAN VEHICLE DISTRIBUTION

MARSHALING YARD OPERATION

Heijunka - Smoothen production process by destination to avoid spikes in deliveries

STAGING AREA OPERATION

Limitations of the process Lack of co-ordination among the plant marshaling

yard management and rail company local management

Solution to overcome Limitations Classification by region Classification by city

RAIL CAR LOADING PROCESS

Tracking of vehicles through the entire logistic network

Real time information ETA = FQA + estimated delivery elapse time Buffer time of 3-5 days Regular updating of information Helps in updating the customers about

expected delivery time

TRACKING PROGRESS

• Accessory Installation done at the regional hub• Most dealers operate

in urban area• Most of the

transportation by truck• Minimal use of rail• ETA Calculation

Method

DISTRIBUTION FLOW IN EUROPE

Ford – UPS Logistics Group Providing logistics expertise Hub-and-Spoke system Optimum use of available resources

GM – Con-way Outsourcing of inbound and outbound logistics Responsible for shipment of parts and vehicles Implementation of IT for transparency

FORD AND GENERAL MOTORS

OVERSEAS INBOUND LOGISTICS