Toyota: Demand Chain Management Harvard Case Solution & Analysis

Problem Statement

Toyota the global leader in car manufacturing has leveraged its efficient supply chain to exceed in managing demand and has shown flexibility to become global leader. The company has been product specific since the initial start and has always focused on remaining customer oriented.

The company has kept its prime focus has always been the Japanese and North American markets which the company has been catering quite efficiently and managing the demand leveraging its efficient distribution channels, planning methodologies, inventory management system and most importantly the production capabilities of the company.

All these factors have vital contributors in the overall success of the company. The company has launched Toyota Prius and Scion to enhance its product line but is facing challenge or to state that is aiming to adjust the products with the customers.

However, the company is aiming to utilize the current manufacturing and distribution systems as much as possible to manage the demand for the newly launched products. The company has different set of challenges with this new effort which the company is seeking options to utilize.

Situation Analysis

The company that came into existence as a result of a spin off has been vital contributors in providing the world with innovation and efficient motor vehicles. As the time has gone by the company did not stopped innovating and kept on enhancing the features and product line. The company at once tried to cater the luxury car segment by introducing a new relatively new brand Lexus which has been a success.

However, the company currently is looking to manage its supply chain and demand management with the launch of its new product Prius and Scion. The company as part of its innovation project has launched these hybrid cars which are aimed at enhancing the customer relationships with the company and also will increase the demographic audience. However, this new strategy also poses some challenges that the company will have to cater efficiently.

The basic purpose of demand chain analysis is that it basically drives the demand for any particular product. Specifically talking about Toyota Motors Corporation, the company has incorporated a demand chain that is quite flexible, efficient and that has always focused on the customer needs while catering the specific demand that has been ever growing. In the year 2002, Toyota Motors has almost 45 manufacturing plants in 26 countries.

Toyota is a company that has been able to cater the overall demand for various types of products where the company has been able to manufacture different category products such as cars, trucks, saloon cars, mini vans and the luxury cars also. With the large product profile, optimum coordination has been needed which has to be addressed that the issue of over production in plants, adequate planning and any such issue which might be faced by the company (Iyer, 2009).

Toyota Corporation has been a company that has looked to cater the needs and wants of the customers. To achieve this purpose the company has looked to set up plants in various markets which can actually fulfill the needs of Toyota customers. As the company has made itself available in over 26 countries confirms the fact that Toyota generally looks to cater the needs and wants of the customers quite significantly.

The identification of the customer has been the fact that they prefer quality car at reasonable prices with utmost comfort and value for money. This attribute has basically took the company log way.

Toyota has been able to actually emphasis on the improvement of its products and variety of brands to actually appeal the customers while focusing on the attribute of technology and innovation. The Toyota cars such as Scion and Pries have been quite high in demand in the recent past because of the level of efficiency and friendliness it provides

Supply Chain

Motors have been in existence for many years and hence it has been able to maintain a stable supply chain program within respective markets. The overseas plants have helped the company reduce the expenses and have helped the company in terms of operating and performing to the maximum potential.

The supply chain activities have become quite an integral part of the organizations in today’s world. Toyota Motors has been quite keen to expand itself through accurate, effective and efficient supply chain network.......................

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