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Value Chain Examination Inbound Logistics

In this stage, Toyota receives raw materials or parts from both local and international suppliers. For Toyota production vegetation in Thailand, about 90% of all components in pickup trucks are made in Thailand and 70% of components that manufactured in Thailand are used in sedan. And the rest of components come from China, India, Vietnam, and Japan. They dispatch components from international suppliers by ships then deliver to development plant by pickup trucks as well as for local suppliers in Thailand, trucks with full-loaded are utilized. Toyota makes suppliers making a commitment that they will share any invention in the suppliers group that produces similar products. This can make suppliers produce better quality parts, better. Also they use Just-in-time and Dairy run in this stage.

Milk run is the method you use logistics providers to get car parts from all suppliers in the routes and deliver to production plants. This method can reduce traffic at the development plants. There will be fewer trucks because sometimes many suppliers used to provide their resources to the plants however now only logistics providers' pickup truck with full-loaded of parts from different suppliers. Also, this can make inventory level diminishes, because you will have the parts many times a day, rather than getting a major lot occasionally. So cost in traffic management and having cost cut down.


After obtaining components from suppliers, now development plants put all the parts mutually at their own production plants in Sum Rong, Gateway and Baan Poh. This is called as Trim manufacturing which require of Just-in-time, Jidoka and Kaizen

For Just-in-time or JTI, Kanban has been used to help attaining. Kanban tells you what things to produce, when to produce and exactly how much to create by handing cards along in the creation process. Which means you won't produce if the previous development process hasn't transferred you the card, which also cannot get started when there is no demand from customers. And yes it could reduce lead time, which satisfies customers, since it can respond to customer demand immediately. Furthermore, no stocking occurs in the development plants.

Jidoka can reduce defective goods by discovering the development process closely, so if any issue occurs in the assemblage line, the production collection will be quit immediately, fixed and ensure that it will not happen again. When less faulty goods occurs, the development system becomes more reliable, the opportunity that customers are certain to get defective goods will reduce, satisfaction rises.

Kaizen is employed to improve all functions regularly. It starts off with idea decades, then test the best with the standardized process, if it's good, they'll apply that idea to the old process. The key in this method is to keep strengthening, never stop creating ideas and test to see whether it's a good notion. By Kaizen, it creates value to customers because they will progress and better product from the improvement in creation process.

Outbound Logistics

After the business has produced the cars, the main goal they want to do next is to sell their cars. However, through this aspect they want marketing and sales, distribution of the merchandise, as well as customer services.

In the syndication process, Toyota will await the customers' demand. Most of the car will be parked at the parking lots in which they are waiting for the purchasing purchases from the dealers. For the automobiles that curently have purchasing purchases from customers, they'll be parked at the cross docking area and will be sent to the customers as quickly as possible. And around 15 % of the vehicles that have been parking in the recreation area a lot will be delivered to the near parking lots for even more mailing to the dealers

In Thailand, there are 119 traders with 319 showrooms that Toyota creation vegetation in Thailand have to serve. For this outbound logistics in Thailand, Toyota has developed something called Vehicle Logistics which is a cluster deliver. In the past, one pickup truck can carry 3 large-sized automobiles and 6 small-sized vehicles. In nowadays, it is improved upon so that certain truck can take 4 large-sized vehicles and 8 small-sized autos. This also helps save the transport cost for the company as well as reduces carbon dioxide emission to protect the environment which is one of the Toyota's purposes.

Marketing and Sales

In the client orientated fashion, at this time the Toyota has prepared the offering to satisfy the needs of targeted customers and the population. They provide the vehicles at a realistic price for ordinary people, at the same time also keep satisfaction in terms of comfort, styling, controlling, safety, fuel market, and environmental awareness.

For the marketing activities, Toyota Motor unit Thailand did a whole lot in this part including, advertising through mass media like commercial advertising on television, internet, etc. After that, there are also many other project activities like Brief Film project, Highway Safety projects, as well as other CSR tasks (Toyota Mangrove Reforestation Task, Stop Global Warming Job, etc). Moreover, Toyota also creates online-society that their customers can share things between each customers and the business which is called "e-Toyota Club".

With there projects, there depends a marketing work where Toyota has provided the company with the best methods to reach the target audience as well concerning create brand understanding.

After-Sales Services

In days gone by, the focus has been on everything before the sale. Lately, Toyota has been more and more concentrate on service after the sale. Exhibit Maintenance is a perfect example. The company got a closer look and found out other ways to improve back-end profitability. As part of this process, the company has started the term point out service, which entails: Quick service, Fast repair service, and Car spa service.

The Car spa service program continues to be in the process of being rolled out to the retailers, but it offers excellent potential for increasing client satisfaction while building customers for life. However, the idea of Car spa service is the fact operating a vehicle in Thailand can be hard on that vehicle since the program has to provide a full range of services to keep the car looking like new.

So, many of these different elements of this program help Toyota owners maintain the quality with their vehicle - plus, the service is being performed by someone they trust: their Toyota supplier.

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