- Did it surprise you that logistics can be such an important component in a country’s economic system? Why or why not No, it does not surprise me, especially after having deep understanding about the Logistics role on controlling the flow of the product in any economic system, and helps all the functional areas in any Supply chain to synergize together to reach the goal (effective ) and reach the maximum utilization (efficient) to decrease waste and cost, thus to maximize the customer satisfaction in forward and Reverse flow, accordingly it is suffice to say that it can be considered one of the most important component in the Country’s economic system.
2. Due to technical problems, Toyota had recalled various models of their cars in the international market. This in return had a severe impact on their strategic and operational thinking and planning. From a logistics management perspective, describe how the logistics function can contribute to overcome Toyota's recall crisis. Although it has been the world third largest manufacturer of automobiles in unit sales and in the net sales, also created good customer relationship and provides customers with the products they need. However from my prospective, Toyota faced a critical recession in the Motor market, as they ultimately recalled millions of its cars for floor mat issues, brake problems and "sticky" gas pedals. Toyota did recall almost 8 million vehicles worldwide. Accordingly and due to the am problems in recent produced vehicles. The foundations of the public’s trust in Toyota - a firm that takes great pride in the quality and safety of its vehicles have been shaken. Although there are speculations that Toyota was aware of the issues prior to this time, Toyota did not respond until the crisis reached the current status of the issues life cycle. Since this was so late in the issues life cycle to begin responding to Toyota’s crises, I presumed there would be a greater threat to its image, identity, and reputation.
Thus Toyota loses a big share of its reputation with the customers. So I believe that the main target in this period is to stress on all the Logistic functions to regain customer confidence throughout severe synergism with all the functional areas starting from suppliers, dealers, Production, employees, and culture. Internally as well as externally with the assembling regional area for the vehicles maintaining a “close Monitoring on the supply chain view” when making any decisions on outsourcing or Assembling. and also to generate a spirit between different functional area to serve the customers or consumer’s satisfaction rather than targeting of making high profit in order to return the customer confidence.
“"Let us join hands and work together to regain our customers' confidence” Steve Brown, Toyota.
So starting with the suppliers: we should supply the material from the well trusted suppliers and with the best quality even it is less profitable. Also Companies should design and manufacturing information and traceability data that can be shared with suppliers for effective root cause analysis.
“We have a project across almost all of our plants this year to measure internal and in-plant logistics engineering, as well as the impacts from external providers,” says Brown. “This project activity flows into determining supplier locations, of which logistics is an increasingly important part.” Steve Brown, Toyota.
For the Production Area and Assembling: Close monitoring in production and assembling area under supervision of our specialists in Toyota Japan, they will plant systems that links assembly lines so tightly to suppliers, Toyota is trying harder to limit the costs and the risks in the wider supply chain.
Improving global Quality Control management system: Actually tightening Toyota quality controls and being more careful than ever by setting a global quality special taskforce that would conduct regional quality improvement activities around the world to provide customers with satisfying products in each and every region.
Evaluation of QC system: Seeking evaluation from outside experts - as a fresh eye for its newly improved quality control management system also to hire quality management professionals
Ensuring Customer Satisfaction: in order to be so close with the customer and to have instant evaluation for products worldwide, Toyota planned to set up a system in which customers around the world would reach Toyota’s Senior management in a timely manner. Regions would get more local authority too in order to evaluate Quality Assurance processes. General speaking, to become more focusing on the customer, using two way flow of information and feedback.
