It was noted above that some very large companies can be bigger than some small

Question

It was noted above that some very large companies can be bigger than some small countries (for example in terms of company revenue when compared to country GDP). How such large companies arrange their logistics activities is thus highly relevant for various stakeholders. Take a large company with which you are familiar and attempt to evaluate its logistics activities. Examining company annual reports, company websites, and other information sources should generate information of interest. Detailed investigation may highlight specific issues of interest from a logistics perspective: for example, it is not uncommon for some sea ports to be highly dependent on individual large manufacturers in their hinterland. Try to identify linkages such as these and their implications. For example, what would happen to such a port if the manufacturer decided to relocate production to another factory in its global network?

Explanation / Answer

Logistics activities of Toyota

Toyota is one of the largest cars manufacturers of the world. Car manufacturing business uses sea routes for transportation as it is less expensive and less risky in terms of damage to Cargo. It can carry huge consignments at a time and can be transported over long distances. The disadvantages of maritime transport is that the salty water can cause corrosion to outer surfaces of car and it is very time consuming. There are many manufacturing companies in Japan which use the sea ports of Japan for procuring raw material and resources and shipping finished goods.

Toyota logistics network is spread throughout Japan and the world. It transports the automotive parts, components and cars across distances. Toyota is working towards having logistics practices which reduces the emission of carbon di oxide gases and prevent harm to the envionment. It uses technology for innovation and better processes. Using less plastics and environment friendly packaging material are some of the steps in this direction. As Toyota has vast logistics operations for transportation from factory to dealers and overseas market, it follows strategy like using same containers which can be utilized multiple times. There are mixed loading practices which are followed for making optimum use of space. There is use of railways networks for return of empty containers and equipments for reuse.

Toyota has a efficient logistics network and operations worldwide. It uses the sea routes for transporting to its global distribution network across the world. Its logistics and supply chain provides a competitive edge to the company.

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