Introduction
In today’s competitive environment, company’s performance does not depend upon its capabilities alone. In the past decades, what had increased was: outsourcing, supply base reduction and consolidation. This has increased the reliance of buyers on their suppliers and has become the popular manufacturing strategy for companies. It is because of the increased dependence, that how major suppliers perform once in terms of quality, delivery, costs and services, affects the buying company’s performance. Like, part shortages contributed to long production delays for Boeing’s 747 and 737 airplanes and a resulting loss of over $1 billion. Hence, it is significant for a successful firm to understand a supplier’s capabilities and performance potential.
Since the fourth-largest automaker in the world, “Toyota is committed to continuous improvement, looking forward to new tomorrows. Built-in car navigation system is getting more popular all around the world as it could offer a more suitable and safer environment for drivers. Aggregation of mapping data, for the navigation systems from Denso, is now available in about every Toyota model in the UK.” (www.toyota.co.uk) Toyota’s navigation system supplier: “Denso, a $16.2 billion Japanese corporation, is the fourth largest independent automotive component supplier in the world.
Denso’s vehicle navigation systems perform complex spatial data processing and were used by car manufacturers such as Toyota, Jaguar and Cadillac.” (www.denso.co.uk) Moreover, Toyota is not the only buyer of Denso; but Denso is the only navigation supplier to Toyota. In this assignment, I would utilized supply chain theory to analyses how Toyota has managed its relationship with Denso and how Toyota can manage its supply chain better.
You need to provide the following background information about the company in an introduction area.
• Brief introduction to your company
• Nature of the Business
• Nature of the products
• Organizational structure
• Customers satisfactions
• Any other detailed characteristics of the organization.
Clearly explain all related assumptions regarding the nature of the business and any other information applicable for the chosen organizational context and answer the following task.
Task 01
1.1 Develop purchasing systems for standard and non-standard items
1.2 Describe the organizational structure and possible organizational configurations
1.3 Explain how the efficiency of purchasing functions would be analysed in your organization
1.4 Briefly describe the involvement of Human Resource Management in your organization’s purchasing functions
1.5 Briefly describe the utilization of IT in the procurement and supply chain management activities
Task 02
2.1 Explain the different types of sourcing available and strategies formulated to manage them in your organization.( i.e Consumables, capital goods, goods for resale)
2.2 Write down the strategies that are used by the organization to develop and maintain efficient supplier relationship and list the ways for vendor appraisals
2.3 Write down the issues that are identified by your organisation when sourcing decisions made?
- Tendering
- Make or buy decision
- Subcontracting or outsourcing
Task 03
3.1 Explain how negotiations with suppliers are conducted to obtain goods and services at accepted costs.
3.2 What are the channels of distribution for the different types of goods?
3.3 Briefly explain the procedures used by the organization to make sure the security and safety.
Task 04
4.1 Does the company’s purchasing activities influenced by national and transnational organizations. Briefly explain.
4.2 Investigate the relationship with the foreign suppliers, Compare and contrast the relationships with the foreign suppliers with the competitors
4.3 Explain the role and the service provided by the specialist in international purchasing
4.4 Explain how cooperate social responsibility initiatives have affected purchase-supplier relationships.
4.5 Asses the advantage of global sourcing strategy.