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Toyota Creates More Disaster-Proof Supply Chain

If you weren't living under a rock last year, you probably heard about the terrible tsunami and earthquake (and resulting flooding) that occurred in Japan last year. These disasters not only damaged the country and devastated families; it also wreaked havoc on several Japanese automakers. Toyota was one of the auto brands that was most affected by these tragedies. The company saw shortages in parts, destroyed links in supply chains, and eventually, a shortage of new vehicles. Because of these catastrophes, Toyota has decided to create a more resilient, more disaster-proof supply chain.

Executive Vice President of Toyota, Shinichi Sasaki, explains how this chain will be created, stating, "We'll know by the end of March what contingency measures will be taken by all the supply sources and have those in place by around autumn."1 Currently, Toyota has mapped out around half of its 500ish Japanese suppliers, which allows the company to pinpoint the nearly 1,500 factories responsible for producing Toyota parts and components. Of these 500 producers, around 300 are considered "at risk" areas. These producers are the sole source for about a thousand Toyota parts.

These locations are in Japan's "Ring of Fire"- an area where about 20 percent of the world's earthquakes occur, Toyota has asked these producers to spread production to various locations or to hold extra stock of their materials. Toyota also hopes to consolidate similar parts to cut the risk of having a low supply.

It's not a shocker; Toyota is concerned about its drivers above all. For more information about the considerate automaker, stay tuned here with Fletcher Jones Toyota Scion. Located at 3255 E Sahara Avenue Las Vegas, NV 89104, we're easy to find, so stop by and see us anytime.

Source: 1http://uk.reuters.com/article/2012/03/02/uk-toyota-supply-chain-idUKTRE8210BW20120302

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