TOYOTAǯS INBOUND LOGISTICS

m Inbound logistics
m Operations that transports parts from local suppliers to
the local plants
m Toyota Local Inbound Logistics
m Parts to be transported from the suppliers in an efficient
and timely manner.
m Toyotaǯs Inbound logistics can be best described as a
logistics network.
m The Network Logistics model enables Toyota operate
a very efficient and effective inbound logistics
operation.
Toyotaǯs Network Logistics Model
 Route Planning

r Itǯs done once per month and is based on the next production month plan.
r Creation of logistics route plan to transport parts from hundreds of suppliers
to multiple manufacturing plants is a complex process.
r What all the route planner needs to know??
r Optimizing cubic space of each truck by avoiding Dzblowoutsdz.
r Toyotaǯs emphasis is always in combining the talents of human beings &
power of machines. It doesnǯt rely upon computer system alone.
r Routes would vary when either there is a major change Production or when
there is a new supplier.
r E.g. of Toyotaǯs Route planning.
r Implementing alternate contingency plans in the crisis in order to keep the
parts flowing.
 Toyotaǯs Pipeline management

m Dz Parts pipelinedz is defined as all parts that have been ordered from a
supplier and have not been unloaded at receiving plant.
m Its important for Plant production control personnel to understand the
status of all parts in pipeline.
m Toyota uses variety of methods to track parts throughout the pipeline.
m EDI ( Electronic Data Interchange)
m Kanban bar code label
m Advance Shipping Notice(ASN)
m Pipeline database is important whenever there is a crisis situation such
as parts shortage, short shipment or transportation delay.
 OVERSEAS INBOUND LOGISTICS

m Product Distribution.

m Concept of Vanning Center.

m Long Lead Time Pipeline Management.

m Mutual Benefits from a Partnership.

 VANNING CENTER
m Vanning Packing Process
 RISKS INVOLVED
m Long Lead Time

m Parts shortage would require a part to be unloaded prior to

its scheduled time.

Ô





m Used to describe the process for locating a container.

m Negative impacts
 LONG LEAD TIME PIPELINE
MANAGEMENT

m Pipeline Management is important for all parts.

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

m Toyota has developed this system to track changes with

respect to vehicle specifications on a daily basis.
 MUTUAL BENEFITS FROM A
PARTNERSHIP

m Toyota partners with a supplier or logistics provider.

m Toyotaǯs partnership
with
TCI Ȃ Transport Corporation of India

m Learnings of TCI from Toyota.

 OUTBOUND LOGISTICS

m Product distribution
m Different distribution flow in Europe and North
America
m Toyota uses multiple 3PL providers
m Rail roads, common carriers and trucks
m Transports vehicles, goods and raw materials
m Multiple Manufacturers Ȃ cost effectiveness
NORTH MERIC N VEHICLE
DI TRIBUTION

Plant

Marshaling
Yard

Rail hipm nt and

th n Truck D liv ry
taging
r a Dir ctly Truck D al r
D liv ry
MARSHALING YARD OPERATION

Assembly
Plant

Rail Truck
Staging
Area

Accessory Dealer
Staging
Plant
 STAGING AREA OPERATION
m Heijunka - Smoothen production process by
destination to avoid spikes in deliveries

Railcars

Bi-Level Tri-level
 RAIL CAR LOADING PROCESS
Stage for Pre-stage Assign Release the
Load the
rail empty destinations rail car for
vehicles
shipment railcars to railcars shipment

m Limitations of the process

m Lack of co-ordination among the plant marshaling yard
management and rail company local management

m Solution to overcome Limitations

m Classification by region
m Classification by city
 TRACKING PROGRESS

m Tracking of vehicles through the entire logistic

network
m Real time information
m ETA = FQA + estimated delivery elapse time
m Buffer time of 3-5 days
m Regular updating of information
m Helps in updating the customers about expected
delivery time
 DISTRIBUTION FLOW IN EUROPE

 Accessory Installation Assembly

Plant
done at the regional hub
 Most dealers operate in Marshaling
Yard
urban area
 Most of the Regional
Hubs
transportation by truck
 Minimal use of rail Dealer

 ETA Calculation Method

FORD AND GENERAL MOTORS

m Ford Ȃ UPS Logistics Group

m Providing logistics expertise
m Hub-and-Spoke system
m Optimum use of available resources
m GM Ȃ Con-way
m Outsourcing of inbound and outbound logistics
m Responsible for shipment of parts and vehicles
m Implementation of IT for transparency
OVERSEAS INBOUND LOGISTICS