Why just-in-time will remain the way forward for Toyota
By Marcus Williams and Christopher Ludwig2021-04-27T10:54:00
Leon van der Merwe is leading inbound, outbound and service parts logistics for Toyota Motor Europe. At this year’s Automotive Logistics and Supply Chain Europe Live conference he told Christopher Ludwig about the carmaker’s strategy to modernise just-in-time and make Toyota’s logistics more sustainable
The death of just-in-time supply chains may have been greatly exaggerated. While material and chip shortages, along with delays to container shipping, have strained automotive manufacturers’ low inventory strategies, to blame lean supply chains may in some ways misinterpret the principles of the Toyota Production System (TPS) and just-in-time logistics. When executed correctly, with the right balance of visibility and partnership, the kanban system of replenishment at the heart of TPS is based on a steady flow and smoothing bottlenecks – in effect leaning inventory where possible, and balancing stock with the right level of demand and production. For lean experts, carmakers like Toyota may have been able to manage current disruptions better than others thanks to JIT – rather than in spite of it.