As the world’s second-biggest car manufacturer, with more than six million cars sold as of July 2019, Toyota Motor Corp. (NYSE: TM) has a diverse supply chain to support its business operations. In Japan, Toyota buys directly from 200 component suppliers. Based on data from Toyota’s headquarters, the 200 suppliers account for 2 billion units of which 150,000 types are purchased monthly. The total value of purchased components is pegged at $300 million a month.
The company, founded in 1937, spends approximately $32 billion per year on supplier parts and materials, goods and services in the North American market. The company typically gets much of its component parts from suppliers at the local level, preferring a long-term contract to assure a steady supply of everything from upholstery to tires to windshields.
While supply contracts are never set in stone, maintaining strong ties with its top suppliers is a...READ MORE HERE
The company, founded in 1937, spends approximately $32 billion per year on supplier parts and materials, goods and services in the North American market. The company typically gets much of its component parts from suppliers at the local level, preferring a long-term contract to assure a steady supply of everything from upholstery to tires to windshields.
While supply contracts are never set in stone, maintaining strong ties with its top suppliers is a...READ MORE HERE