Toyota Motor Corporation in Australia-Free-Samples for Students

Question: Discuss about the Critically Analyze the Key Sustainability Aspects of the Organizations Current Supply Chain. Answer: Introduction Automobile industry is perhaps the most challenging and demanding industry. Product innovation, continuous improvement, vehicle prices and fuel prices are the major factors that determine this industry (Iyer, 2009). Over the past decade, the price of fuel has been constantly rising, which has encouraged the adoption of new and other fuel-efficient models. The world is also moving towards more development and thereby increasing per capita income, which at one point has increased the needs of the masses in terms of the product needs, yet, has also raised concerns in the terms of increasing carbon foot print. In their review, Sindi and Roy (2017) reflect that an increase in purchasing power of customers is responsible for making a shift from small to medium sized cars. Easy automobile loans are the main reason for the increase in sales of this industry. Demand is increasing day by day. Toyotas competitors are also increasing day by day and also the entry of new comers in the market is posing problems to Toyota. New entrants always come up with new and innovative products and move the industry in their favour. Consumers are becoming better informed and want to choose the best and innovative product. This puts up a lot of pressure on RD. Meanwhile the company has also enabled a strong growth model and a lean based supply chain model that has contributed towards its accentuated marketing growth and competitive supply chain framework (Palevich, 2012; Toyota, 2016). Over the years, the company has enabled a strong presence for itself in the overseas market, and the same has been evident in the context of Australia as well. However, in the recent times the company has raised concerns over the manufacturing cost and high dollar of the company which has contributed towards the challenge in the manufacturing process of the company (Mahler, 2007; Wallace and Furgusen, 2014). In these challenges, the company contemplates exist from the market much like Ford and Holden, which are affected by the issues in terms of supply chain and manufacturing beyond their control (Wallace and Furgusen, 2014). This in turn raises concerns for the countless stakeholders, employee and general public in terms of sustainability of the operations, notwithstanding the impact of this exit for the organization (Cetinkaya et al. 2011). Through the means of the present review, the state of the supply chain of the company within Australia is evaluated, and suggestions from the academic sources, and models of chain management in other countries for the company are contemplated to provide recommendations for improved stance of the company. Company Background Toyota Motor Corporation was established in 1958 in Australia. Initially, assembly of Toyota vehicles in Australia started taking place at the production plant in Port Melbourne, Victoria. This production line was devoted to the Toyota Tiara. In 1978, a new production plant was established in Altona, Victoria which replaced the old one. In 1986, the first car named Toyota Coronawagon was exported and headed to New Zealand. At this time, Toyota started manufacturing locally. Till 2006, all manufacturing was shifted to Altona (Dunckley, 2014). Toyota was now ready to set a milestone in the automobile industry and launched many vehicles including theToyota Tiara, theToyota Corona, theToyota Crown, theToyota Corolla, the Toyota Camry, theToyota Avalon and theToyota Land Cruiser. In 2010, Toyota Motor Corporation decided to launch a new car to enter in the new and upcoming hybrid industry. It launched Camry Hybridin 2010 after securing a $35 million subsidy from the Federal Government. It was a great hit. Toyota Motor Corporations annual revenue started growing every year since then. The global improvement of Toyota has been evident through the emergence of the manufacturing plants of the company around the world, a representation of the same is made evident in figure 1, where the varied areas for the same are noted. Figure 1: Worldwide manufacturing operations of Toyota Source: Toyota (2006) However, even as these emergence has contributed towards the growth of the plant in the country, it has also paved challenges in the name of the management of the supply chain of the operations based on the consumer needs despite the political, legal, environmental and socio-economic climate of the region involved (Sindi and Roy, 2017; Wallace and Furgusen, 2014). Present challenges In their review, Malihi and Shee (2017) reflect that the choice of the company to operate through the model of the management and sustenance. It is concurred that the assembling was upheld long time for its introduction towards Asia-Pacific inventory network as opposed to internally market advantages and gaining consumer through aggressiveness. Typically these exchange approaches, for example, import duty cut, shares, and substance necessities took after by tax reductions for RD activities support the business to survive (Berns et al 2009). However, in the present case due to the high cost of assembling operations powered by reliable higher household interest for abroad collected little autos the challenges are suddenly more pronounced (Malihi and Shee, 2017). At present we see the surviving examination which features the automobile assembling and supply issues of the company in UK, USA, Japan, and European setting (Toyota, 2016). And it is evident that no exploration however happens in terms of a major change with respect to the import chain particularly in vehicle dispatch system in the Australian setting. Which raise a question as to what impacted the challenges in the supply chain management of the company in the region with respect to an effective 'dispatch lead time' as the restricted time (in days) accessible to first level segment providers who get parts from abroad second level providers and convey them to fitment focus (Jagler and Sarkis, 2015; Iyer, 2009). Through the means of the present analysis it is reflected that an additional difficulties of Toyota is evident in its manufacturing framework where the convenient conveyance of a high quality vehicles to the end clients has to be delivered (Iyer, 2009). This requests an adaptable generation line with MTO approach that can deliver the end product in the country to the consumers in the most limited lead time conceivable (Cetinkaya et al 2011). While, it cannot be denied that the company has succeeded in this light with respect to the JUST IN TIME approach (Toyota, 2016; Malihi and Shee, 2017). However, in these lines there is a need to increase the issues of the first level providers optimization, which seems to be missing in the present plan (The Manufacturing Performance Institute, 2011). It is further noted that while providing the parts in the nick of time to auto constructing agent, Toyota and other auto constructing agents hone JIT standard as it instils a sense of confidence in assembling with zero or negligible in-process stock, abbreviated lead time, and exceptional investment funds in conveying costs (Netland and Powell 2016; Sindi and Roy, 2017). However, considering JIT rehearses inside the auto get together and its conclusion to-end vehicles import store network, there arise a need in the operation to instil confidence in promoting examination of JIT supply along the chain and its related work weight emerging from tight lead time (Jagler and Sarkis, 2015). In the context of Toyota manufacturing framework, Jayaram et al. (2010) examine the effect of lead time on get together cycle time and conveyance execution. Through this reflection it is evident that the tight dispatch lead time with first level providers has been an issue in the Alconn plant considering their area is far from second level abroad providers (Wallace and Furgusen, 2014). It is further noted that in the first place level providers have been encountering hard time while organizing JIT supply with auto constructing agents (Golinska, 2014). Getting the supply from second level abroad providers (for the most part in Asia locale) with the 7Rs, i.e. right item, right client, right amount, right condition, opportune place, ideal time, and right cost becomes a challenging task (Jayaram et al. 2010). In this sense it is further noted that there is a need to remain an unequalled test for the entire chain and to start with level providers in particular (Bartezzaghi et al. 2016). Through the means of this investigation the researcher concentrates on the issue of lead time that is excessively deficient bringing about abnormal state of worry among the supply chain drivers in general, and first tier suppliers in particular for the company supply chain (Mahler, 2007). It is noted that even as more and more researcher have addressed the similarly of these variables in the country, still limited prior examinations have tended to this issue in a comprehensive light with consideration to the environmental analysis, to provide strategic solutions. Current SCM practices of Toyota Huge production capability: Toyota is widespread in the world. It has more than 50 manufacturing units in 27 countries and regions besides Japan. This extensive production capability helps Toyota to boost its revenues. In 2012, the company produced a total of 7,435,781 vehicles across all its manufacturing locations (Toyota, 2013). However, this extensive production puts a lot of pressure in the achievement of dead stock and it diversifies business risk too. Wide Distribution network: Toyotas geographically well distributed network enhances sales. Sales of Toyota rise every year at rate of 2%. In Australia alone, In FY2016, Toyota sold 209,610 units (Dunckley, 2014). Strong market position: Toyota has a strong market position in different geographies across the world. The company's market share for Toyota and Lexus brands, (excluding mini vehicles) in Japan was 45% and including mini vehicles was 29.4% in January 2017. This strong market helps in gaining a very strong market position all over the world (Singh et al. 2007). Strong focus on RD: Toyotas policy to develop new products and bring out latest technologies helped the company to sustain against strong competition. Advanced engineering helped its to move further many steps ahead as compared its competitors (Wright et al. 2009). With the help of its rigorous RD, it improved quality and safety of its automobiles. Toyota is also aiming to make clean cars which are environment friendly. The company performs RD at its 14 facilities worldwide (Hassan, 2012; Singh et al. 2007). Intense Competition: Toyota suffers from intense Competition worldwide. Toyota cars are losing its market because of the hybrid car competitors (Shubhashine 2012). In the context of Australia, even as the competition has decreased still challenges in the face of domestic suppliers has been increases, since as per Singh et al. (2007) poor suppliers relation and cultural challenges continues to impact the supply chain of the company in the country. Growing global automotive industry: The global automotive manufacturing industry grew by 10% in 2016 to reach a value of $1,563.9 billion (Toyota, 2016). The growth of automotive industry provides Toyota an opportunity to gain more customers and increase revenues. Current Sustainability measures Through the means of the present review it is evident that the Toyota as an organization is doing a lot of RD to successfully respond to the needs of the rising middle class in the emerging markets (Bartezzaghi et al. 2016).Through consistent commitment to quality, Toyota has emerged as the most best-selling car of 2016. Its continuous innovation to change design of its automobiles and strong outlook for the new car market has helped it to meet the consumers unique needs. Furthermore, Toyota has grown partnership with BMW in June 2012 and produced many benefits (Toyota, 2016). However, it is noted that at one point it has helped in increasing sales in most of the countries by signing a memorandum which is aimed at long-term strategic collaboration on technological fields. In addition, it has also helped both companies to boost the technological know-how and may result in the development of new clean cars thus increasing revenues in the long run (United Nations Global Compact, 2010). Cost-savings, boosting the operational margins are some other benefits of this kind of partnership (Totyota, 2016). However, it has also altered the stance of the company in terms of the competitive market and internal relations, where Toyota has started making hybrid cars with the launch of Camry hybrid alone, suggestive of the lack of consideration of the consumer perspective in the market (Bartezzaghi et al. 2016). In this sense it is evident that there is a need for the company to face challenges in the light of the first tier supplier relation through the management of the forecast heuristic which enables improvement in the operations (Jayraman et al. 2010; Hassan, 2012). Recommendations Toyota should take measures to cut down its manufacturing cost. It should try to reduce fixed costs of automobiles in its established markets. It should continue to strengthen its management platform and raise corporate value. It must improve its operation management and try to procure dead stock (Bouchery et al. 2016). It must try to enhance its business in Australia through appropriate RD. Proper RD will suffice quality and safety assurance (Berns et al. 2009). It must work to achieve a good quality of its automobiles. Hence, this would help in the increase of the sales and revenue of the company (Johnsen et al. 2015). Toyota should pursue and accelerate the process of making clean cars. Environment- friendly cars are our future (Hussain et al. 2016). Customers are more likely to buy these cars because of the high price of the fuel. Energy saving products and making use of renewable energy while incorporating functions and services demanded by customers will make Toyota to procure new heights. Toyota should consider all its business with a future perspective. It should expand its business by developing more manufacturing plants in Australia. By increasing production facilities in Australia, it will enable Toyota to generate more and more revenue. Toyota should improve its Camry hybrid model and make it more competent to other hybrid cars. This will enable it to become competitive with other hybrid car manufacturers. Toyota must try to optimize its human resource. Toyota should improve the workplace and try to use the power of diversity in the use of human resources, and strive to nurture global human resources (Johnsen et al. 2015). It should try to understand the customer and work for the customer satisfaction. Innovation according to customer is the demand of this industry. The company should enable a forecast heuristic to understand the needs of the consumers and gain an understanding of the past consumption and future trends of the consumers to reduce wastage of the products Focus on establishing dyadic relations in the organization to increase efficiency of the operations in the company. Conclusion Toyota Motor Corporation has a brilliant future overseas. However, in the face of the present challenges the company face public outrage and loss of wellness owing to the abandoning of a market and workforce leaving. It is reflected that the company needs to evaluate their supply chain model to enable a consumer oriented and supplier centric framework. Reference Bartezzaghi, E., Cagliano, R., Caniato, F., Ronchi, S. (Eds.). 2016. A journey through manufacturing and supply chain strategy research. Switzerland: Springer International Publishing Berns, M., A. Townend, Z. Khayat, B. Balagopal, M. Reeves, M. Hopkins, and N. Kruschwitz. 2009. 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