Global Sustainability Logistics and Supply Chain Management

Question: Discuss about the Global Sustainability Logistics and Supply Chain Management. Answer: Introduction: Logistics management is one of the most important components of a supply chain management. It has to play multiple roles while managing the internal and external logistics supply of an organization. Internal logistics is responsible for transporting parts and material from tier 1 supplier to the OEM whereas outbound logistics is responsible to distribute vehicles from the plant to the dealers. The report examines the logistics management at the world renowned brand Toyota. It includes all the essentials activities undertaken by Toyota in order to manage their supply chain (Myerson, 2012; Voortman, 2004). Toyota is the global market leader in the sale of hybrid electronic vehicles and a firm supporter of mass market adoption of hybrid automobile. The Japanese automotive company has its headquarter in Toyota, Aichi, Japan. The multinational organization has more than 300,000 employees worldwide. It was the first type of company to manufacture more than 10 million vehicles per year across the globe. The logistic system of Toyota is known across the globe for its efficiency. The process is established carefully by the logistics team in order to reduce the risk associated while carrying vehicles from one place to another. Inbound Logistics The inbound logistics system of Toyota includes two different operations. The first operations deal in transporting parts of the vehicles from the local supplier to the plant. The second part of the system is known part of the operation deals in global inbound logistics. This efficiently transports the parts from Japan to the North America and to the European plants. It is due to the inbound logistic system that the operational model in North America is similar to Europe (Stock Lambert,2001). The success of Toyota largely depends upon the lean supply chain which emphasize on supply of the parts in an efficient manner from the supplier. The company focus on developing a limited number of partnership with other party in order to deliver logistics service. The company has the best logistics network that focus on timely delivery of goods. Most of the supplier is distinguished based on the geographic location. Different parts are picked from one place and are transported by trucks. Different parts are picked up from the different places and delivered to the regional cross dock. The parts are unloaded and staged for the pickup which is delivered to the Toyota plant. All the incoming parts order is being synchronized in an efficient manner to ensure a robust inbound logistics system (Schnsleben, 2016). Network logistics The network logistics model of Toyota enables them to operate the inbound logistics operation in an efficient manner. It depicts the network of the logistics at Toyota. The entities at Toyota are connected through a continuous flow of truck that is used to move container from one place to the other. The Toyota plant is known to assemble plant but also component various engines and transmission. There strategy is to deliver goods in small lots. It is the daily duty of the supplier to provide goods in an efficient manner on daily basis to the plant(Schnsleben,2007). It is necessary to analyze the location in order to create a distinguished supply chain model. The idea behind managing an efficient inbound supply chain is to reduce the idle hour and to reduce abnormal cost associated while shifting goods from one place to another. The course of event in that situation plays an important role. The truck has to deliver the parts to the nearest cross-dock which is supplied to the assembly-p lant (Rushton, Croucher Baker,2014). The advantage of network logistics is to allow Toyota to pick up goods efficiently from the supplier. The network is complex but hence managed carefully by the team in order to enhance the overall productivity. The size of the company has enabled to supply the goods in a systematic manner while closely keeping a heck over the various different activities associated with the network. The shared transportation system enables the overall productivity of the plant on daily basis. This not only helps in attaining the smooth logistics management but enhance the capacity of the plant (Fernie Sparks, 2014). Route planning It is necessary for Toyota to ensure that route planning is efficient enough. It is conducted every month before putting forward the production plan of the plant. This type of planning forms to be an efficient part of the production plan and depends upon the ordering cost associated with the product (Christopher,2016). It is necessary to keep a logistics plan in order to derive the overall capacity associated with the plant. The logistic route helps in easy and smooth transportation of different part from various suppliers. This helps in understanding the location of the plant, supplier, cross-dock etc. Moreover it is necessary to understand the procedure to align various containers in order to attain high level of productivity. It is more critical to analyze the road route to transport the parts which are managed through the integrated computerized system (Snyder, et al,2016). Outbound logistics This logistics technique is used for product distribution. There duty is to distribute the final product from the plants to the retailer. Toyota follows a comprehensive overview of supply chain in order to manage the flow of product from one place to other. The outbound logistics suppliers are known to be there partners who have dedicated themselves to Toyota. However Toyota relies on the common carriers, railroads and trucks to supply the vehicles to the dealers. This transportation channel helps in efficiently achieving the objectives. The logistics supply chain is efficient enough to manage the outbound procedure to deliver the cars to the final consumers. Toyota has managed a pact with the trucking partner in order to deliver the vehicles in time. This facility has helped Toyota in gaining popularity on an international level. The purpose of the company is to deliver vehicles on-time i.e. within 48 hours of the entitled time. This will help in attaining futuristic goals by the co mpany (Waters Rinsler, 2014). Effectiveness of current order cycle The current order cycle at Toyota is managed efficiently by the logistics manager. They have already divided the inbound and outbound procedure in order to attain maximum result. The reason of efficient logistic model is due to the fact that the company is managing both inbound and outbound logistics in a better manner to attain high degree of efficiency. The plant is assembled at one place and sends to the plant which is assembled and sends to the retailer. The current order cycle is effective as proper attention is paid to each and every individual segment in order to procure effective result. The specialty of the whole process is due to division of the inbound and outbound process. The delivery of goods is conducted through the rail and road route within 48 hours (Chopra Sodhi,2014). The efficiency in the model is attained due to variety of factors by adopting the latest model which has helped in achieving sustainable results within a said limit. The company even holds a logistic s meeting with the entire logistics provider to understand the loopholes or the top performers associated with the project. The effectiveness plays a vital role in attaining a distinguished result within a stipulated time period. This will not only help in achieving desired set of goals but help in minimizing the excess cost associated with the supply of the vehicles. Inventory management It is the duty of the logistics manager to manage the availability of the goods at the plant sight. The inbound supply chain system looks after the needs and requirements of the plant in order to keep a check over that the plant is efficiently working or not. The inventory management is a process through which the logistic manner checks the overall reorder cycle and manages his plan accordingly. This has become necessary for an automotive organization like Toyota to look forward into the matter by understanding that the plant continuously works without any outer interference. Managing an efficient supply chain is a duty of a logistic manager in an organization (Dekker, Fleischmann, Inderfurt, Wassenhove,2013). Recommendations In a large sized organization like Toyota which operates in various different countries it has become important to understand the strength and the weaknesses associated with the logistics supply chain in order to understand the overall productivity. The logistic manager has to imply various theories in order to procure an efficient result by focusing on every distinguished feature that includes reinforcing the various defaults that are associated with the goods. The main purpose of the theory is to re-emphasize on the various factors that are associated with a product. In a large sized company like Toyota it is necessary to focus upon the re-order cycle associated with the product which will help in attainment of desired outcome, the theory are necessary for the organization to procure the desired result which is associated with the flow of goods in the supply chain management process (Fawcett, Ellram Ogden, 2014). There are various logistic management theories which form an important base of an organization. All these approaches help in smooth flow of inventory and goods within a regular time period. These theories need to be adopted by the large sized organizations carrying out huge projects. This mechanism helps in managing the internal and external strength of the organization(Fernie Sparks,2014). Toyota functions in almost every country and it has become important for an organization like this to maintain a regular supply chain in order to maintain a regular availability of the vehicles. Toyota has developed a proper inbound and outbound logistics management chain. Under such a multi-dimensional function it has become important to implement the most appropriate theory out of the available one. This will provide a competitive advantage over the other companies and will enhance the overall productivity. There are various approaches adopted by Toyota while managing a consistent supply chain. The company has adopted a network perspective approach in order to manage an efficient supply chain. The purpose to adopt this approach is to take care of the inbound logistics in the company. Building a cohesive network in an organization will help in managing the difficult situation (Mangan, Lalwani Lalwani,2016). Total quality management is related to managing quality of the goods while transporting vehicles from one place to other. It is the duty of the logistic manager to develop an efficient logistic management system to reduce the loss (Carter, Rogers Choi,2015). The logistic manager has a duty to develop an efficient supply chain management process in order to retrieve maximum result. Toyota has a multi-diversified work environment and it has become essential for the company to adopt the best approach in order to retrieve the maximum result (Heizer Barry, 2013). Conclusion The report includes all the necessary supply chain management practices adopted by Toyota in order to achieve sustainable result. AS a logistics manager it has become important to implement the theories in order to attain the desired result. Logistic supply chain management helps in attaining desirable result. This will not only enhance the productivity but will help me providing desired result. The company has developed an efficient inbound and outbound logistics system that has helped in attaining desirable goals within the time-period. Toyota is known across the world for its efficient supply chain management. The reason is due to the company cohesive network that has helped in achieving sustainable results. The company has adopted various logistic management theories in order to retrieve the efficient results as motioned in the mission goals. The logistic chain system not only helps in reducing the excess cost but provides the vehicle within time. They have adopted various approa ches that include network perspective, total quality management theory in order to achieve sustainable results. Material logistics management system helps in providing a regular supply of material. All these approaches will not only help in managing a proper logistics management in order to attain growth. References Carter, C. R., Rogers, D. S., Choi, T. Y. (2015). Toward the theory of the supply chain.Journal of Supply Chain Management,51(2), 89-97. Chopra, S., Sodhi, M. S. (2014). Reducing the risk of supply chain disruptions.MIT Sloan management review,55(3), 73. Christopher, M. (2016).Logistics supply chain management. Pearson UK. Dekker, R., Fleischmann, M., Inderfurth, K., van Wassenhove, L. N. (Eds.). (2013).Reverse logistics: quantitative models for closed-loop supply chains. Springer Science Business Media. Fawcett, S. E., Ellram, L. M., Ogden, J. A. (2014).Supply chain management: from vision to implementation. London: Pearson. 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