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Supply Chain Management

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The production processes in Toyota are pulled on the basis of the customer demand (Toyota a, n.d. ). The concept of Jidoka also drives the supply chain and production system of Toyota that means continue improvement and automation by people. Work being divided into jobs, as defined in the mass productions system of Henry Ford, teams at Toyota constantly instills improvement in overall performance. The suppliers play an equal role in managing the flow of production at Toyota. Overall Toyota SCM is described in a building form that connects the elements as follows: (Black, 2008) Hence, tightly bonded players of the value chain ensure and make efforts to reduce the cost and improve efficiency in across the value chain (Toyota b, n.d. ).

3. SCOR ANALYSIS OF SCM OF TOYOTA SCOR model is an acronym for The Supply Chain Operations Reference. The model is a unique, and unified framework designed for the links across the elements of the supply chain including performance measurement metrics, processes and among defining of best practices, along with the people linked to the supply chain of business into a unified structure (Supply Chain Council, 2010).

The model is presented in the figure below: (Ren, et al. , 2012) Toyota is well known for the constant integration of efficiency measures in its supply chain. The SCOR analysis considers following aspects (Supply Chain Council, 2010): Performance Metrics: are determined to measure the performance of the process in terms of reliability, responsiveness, costs, agility, assets. Processes: The process aspect of the SCOR model takes into account the ability of the process to achieve a predetermined outcome. Process is broadly three level aspects; first, defining the scope of the overall supply chain; level two, defining strategies for different process, and third level takes into consideration the execution of strategies planned in level two.

Practices: The practices perspective assess the leading or the emerging practices, best practices in the organization, common and the poor practices and their impact on the returns. People: SCOR people assesses the fit between the people and the process with respect to skills, experience, aptitudes, training and competency to meet the job task. The efficiency generation and integration across the supply chain model, involved technology, processes, and partners are supported with communication to enhance the effectiveness (Supply Chain Council, 2010). For instance, Toyota has recently re-placed human in place of robotic systems that provide higher accuracy in performance (Nisen, 2014).

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