Case Study 9-1 Global Information Systems at Toyota Motor Company

The Toyota Motor Company is a global automobile manufacturer that operates on five different continents. In the United States, it runs five major assembly plants. To manage its operations efficiently and effectively around the globe, Toyota uses several types of information systems. It uses the Internet and global networks to communicate with its offices, plants, and dealerships around the globe.*

Toyota is one of the founders of the Toyota Production System, an early version of the Just In Time (JIT) inventory system.* This system allows Toyota to have on hand the exact number of components needed at any time in order to continue its operations, given that waste often occurs when components are inventoried and stored. To use a JIT inventory system, Toyota’s GIS must be capable of managing real-time inventory, not only within its own manufacturing facilities but in all of its suppliers’ facilities.Because of this, Toyota requires all of its suppliers to have a system capable of interfacing with the one Toyota uses for its own operations.

Toyota worked with Dell, Microsoft, and WorldCom to develop a “Dealer Daily” system that offers a centralized data center for the more than 1,100 Toyota and Lexus dealers in the United States. This system allows dealers to spend more time focusing on selling cars and less time on paperwork. For example the system is capable of providing a response to a financing application in 15 seconds.*

In 2011, using Oracle E-Business Suite 12.1, Toyota Motor Europe (TME) implemented Toyota’s Vehicle Order Management (VOM) system. This system, which encompasses 13 countries, enables TME to improve its European operations by reducing delivery time to customers and managing inventory more efficiently. As a result, the system reduces operating costs.*

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