Challenges faced in managing supply chain
Although managing supply chains is important, it is also quite challenging
Toyota has also faced various challenges in regards to the management of supply
The challenges of increased complexity in supply chain operations has posed as a
challenge when the company is delivering it automotive products to customers.
Another challenge is that the cost of managing supply chain innovation is quite
high and it leads to increased cost of production
Ultimately, the firm is forced to raise the prices of its products
To deal with these challenges it is the role of the management to employ effective
supply personnel who can deal with the challenges accordingly.
Supply Chain Information Technologies
Usage at Toyota Corporation
As stated earlier, the use of technology is a key strategy in enhancing the
operation of a firm’s supply chain
The implementation of supply chain information technologies at Toyota Motor
Corporation has gone a long way in widening the firm’s market share
Supply chains are complex entities such that appropriate technology is critical for
increasing shareholder wealth and reducing total costs.
Precisely, the use of modern technology has enabled Toyota to create better
visibility with its supply chain
Therefore, Toyota Corporation has integrated modern technology into its
business model in a bid to boost its supply chain management
Key information technologies in the supply
One of the main forms of information technologies used by Toyota in regards its
supply chain is computerized shipping and tracking
This type of technology has enabled Toyota to minimize shipping errors
It has also enabled Toyota Corporation to reduce the time spent on shipping ,
tracking, as well as compiling order data. As result, this saves the firm money.
Another effective form of supply chain technology is the use of RFID for vehicle
tracking. This system technology has greatly helped in enabling Toyota to track
By using this system , the company has managed to enhance consistence tracking;
hence maintaining control and visibility of their car products at all times
Use of social media as a supply chain
Another common form of supply cha
in information technology is the use of social media
The use of social media is currently one of the most popular technologies
worldwide through the existence of platforms such as Twitter and Face book
Many firms such as Toyota are using social media as a way of gaining visibility for
their company and as a key marketing strategy
In regards to its supply chain system, Toyota is currently using social media to
interact with potential clients, report accidents that many affect delivery
The firm also uses social media as an avenue for forming automated updates
about its inventory
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