Lean Logistics in the 2020s and a Cast Study About Logistics and Supply Chain Management in Toyota Boshoku Turkey

Lean Logistics in the 2020s and a Cast Study About Logistics and Supply Chain Management in Toyota Boshoku Turkey

Ibrahim Cil (Sakarya University, Turkey), Halil Ibrahim Demir (Sakarya University, Turkey) and Berfin Yaman (Sakarya University, Turkey)
DOI: 10.4018/978-1-7998-2173-1.ch017

Abstract

Logistics, getting the right product in the right place at the right time to the right customer, is one of the most important functions in large companies. Toyota is one of the world's leading companies in many aspects of successful business practice, particularly in logistics. The techniques developed in the company since the 1950s provide a competitive advantage to Toyota and provide efficiency in many business functions with supply chain management. For that reason, it is imperative to understand how lean logistics practices are applied in the Toyota Boshoku Turkey(TBT). This chapter examines practical logistics applications in TBT, one of the suppliers of Toyota located outside of Japan. In addition to theoretical research, it is also important that practical applications in enterprises such as a Toyota plant contribute to the literature. Consequently, as a case study, discussion and explanation of logistics and supply chains of TBT will spark reader interest.
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Introduction

Lean Logistics is the logistics dimension of lean production that is a management philosophy that aims to meet customer expectations by eliminating wastes in the production flow (Bhasin and Burcher, 2006). Logistics, on the other hand, is part of the supply chain responsible for the planning, implementation and control of the transport and storage of goods, services and related information (Bowersox, 1997). Mentzer et al. (2001) point out that the idea of SCM arises from the concept of logistics. Supply Chain Management is a set of processes to integrate suppliers, manufacturers, and final consumers to ensure that the products are produced at the right quantities, to the right locations and at the right time in order to satisfy requirements (Simschi-Levi, Kaminsky, & Simschi-Levi, 2003).

Lean Logistics (LL) takes its basic philosophy from Toyota Production System (TPS) and is based on expanded TPS throughout its supply chains, from customers to raw materials purchase (Daniel et al, 1997). It has been developed to overcome some fragmentation problems of traditional functional and business thinking. The concept of the LL has become an indispensable element for enterprises with the adoption of the Lean Manufacturing (LM) philosophy that has emerged years ago and is constantly developing (Jones, et al. 1997; Baudin, 2005; Elfving et al. 2010; Cooper, 2017). The most important point emphasized in the implementation of the LL is the distribution and the collection activities of materials, parts, and products (Zylstra, 2012). The collection of raw materials from suppliers is an important step for the producers as well as the distribution of the final products to the customers, which cause an important cost in supply chain management (SCM). The most important decision in Logistics Management (LM) is the correct selection of the methods to be used in distribution and collection activities. After the development of lean thinking in Toyota, it became popular in companies of various types and sizes, including service companies (Battini et al. 2013, Vlachos, 2015, Gollan et al. 2014). There are many studies in the literature on the LL applications for the automobile industry (Womack and Jones, 1996; Takita, et al. 2018). In this study, the information obtained from the observations made about the Toyota Boshoku Turkey (TBT), which is the supplier of Toyota Motor Manufacturing Turkey (TMMT) from the same family, about the activities of the SCM and the LL concept and the basics of these studies are given. This study has a guiding feature for examining the existing systems and for future studies.

TMMT is one of Toyota's vehicle production bases in Europe in which located in Sakarya – Turkey. The Corolla and C-HR models are produced in TMMT and majority of the production is exported to around 100 countries. Today, with an increased annual production capacity of 280,000 units, TMMT is one of the ten biggest overseas manufacturing operations of Toyota, and one of the biggest manufacturing companies of Turkey (www.toyotatr.com). The TBT is one of the main suppliers of the TMMT from the same family and manufactures seat set, door trim, instrument panel garnish and air cleaner. The annual production capacity of over 280000 vehicle sets, the TBT’s exports reaches as far as the whole of Europe and Africa. The TBT also has many suppliers, such as TMMT and provide the parts needed for production of these suppliers. In addition to theoretical research, it is also important to investigate practical applications in terms of contributing to the literature (Khanna & Shankar, 2008; Khan et al. 2016; Rashid et al. 2016; Khan et al. 2019). For that reason, it is very imperative to understand how the LL practices currently applied to TBT, which is outside of Japan. At the same time, the LL practices that support the main idea of green SC increase sosyo - environmental sustainability. Consequently, as a case study, discussion and explanation of logistics and the SC of the TBT will increase the interest of the reader on the issue.

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