The restructuring of toyota,nissan and ford in the global auto market - Research Paper Example

In the outer fringe the supply chain systems consist of the third tier that generally focus on the delivery of certain parts to the assemblers or the tier two supplying units for the automobile companies. Toyota like all other large automobile companies revolutionized herein to create and sustain specialized supplying units that would only focus on supplying of a specialized or certain unit to the assembly centers. Dependency on a specialized supplying partner for delivery of needed components made it possible for the company to effectively initiate the ‘Just-in-Time’ quality system in its production methodologies (“The machine that ran too hot”).

Toyota in terms of selecting the most able supplier to supply automobile parts to its assembly units located round the world works on a set of training and development activities to enhance its relationship with the supply chain units. Through the training and development functions the management of Toyota focuses on making the supply chain units understands the need for supply of quality materials on time so as to effectively meet the objectives of the concern in times of changing competitive business and social environment.

Maintenance of effective relationships tends to build long term commitment from its specialized supply chain units (Tsai, Chen and Yang 9-10; Roh 134). Restructuring activities pertaining to the ambit of global supply chain activities for automobile company Toyota relate to aligning a range of key supplier bodies that would contribute to the delivery of common parts for all its vehicles produced across the globe. This strategy is aimed at reduction in the number of varieties relating to same parts required for the same category of vehicles thereby standardizing on the quality of the supplies.

Toyota in an example has focused on reducing the number of radiators sought from 100 to 21 through a system of closed networking and monitoring activities of its suppliers groups. This strategy further contributes in the reduction of overall cost of operations and supply chain functions for the company (“Suppliers key to Toyota restructure”). Restructuring plans for Toyota relating to the development of relationship with the supply chain units consisted of not only maintaining sustained relationship activities both in an online fashion and also through the enhancement of training and information sharing programs but also through other strategic activities.

The set of other strategic activities related to Toyota’s new supply chain mechanism functionaries relate to the formation of effective joint venture relationships with key supply chain units. Through effective joint venture operations Toyota focuses on gaining a total control over the entire gamut of supply chain functions related to the supply of individual key parts to the assembly mechanisms and also in enhancing its dealer networks for augmenting sales of its vehicles in foreign countries (Gupta, Wakayama and Rangan 135).

The above analysis for restructuring initiatives related to the supply chain functions for Toyota reflect that the company has taken resort to the dimensions of Lean Supply Chain strategies. Through the use of Lean Supply