Toyota North American Service Parts and Accesories Supply Chain Transformation
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Summary
Toyota: 0 –> 1.2 M vehicle North American production in 1986 – 1992 (<6 years). No infrastructure to support North American procurement, warehousing & logistics and supply globally.
Established North American Parts Logistics Division (’93)
Developed organization, systems, facilities, supply chain
| Metric | Toyota Before | Toyota After | Reference: Industry Average |
|---|---|---|---|
| Supplier on-time delivery | 87% | 95% | < 20% |
| Daily order/delivery | 0% | 70% | |
| Supply Chain | 5.2 | < 2.4 months | 6 months |
| Warehouse Labor Productivity (order lines shipped per employee per year) | 30,000 | 46,000 | |
| Service rate to dealers | 98% | < 98+% | 94 % - 97 % |
| Average supply lead-time | 96 hours | 13 hours | 20 - 96 hours |
Benchmark supply chain creates competitive advantage in customer satisfaction and efficiency Highest Net Income % in auto industry