Supply Chain ManagementCase study: Navigation system supplier in Toyota Motor in the U.K.

1. Introduction:
In today¡¦s competitive environment, a company¡¦s performance does not depend upon its capabilities alone. In the past decades, what had increased was: outsourcing, supply base reduction and consolidation. This has increased the reliance of buyers on their suppliers and has become the popular manufacturing strategy for companies. It is because of the increased dependence, that how main suppliers perform once in terms of quality, delivery, costs and services, affects the buying company¡¦s performance. For instance, part shortages contributed to long production delays for Boeing¡¦s 747 and 737 airplanes and a resulting loss of over $1 billion (McClenahen, 1998). Therefore, it is critical for a successful firm to understand a supplier¡¦s capabilities and performance potential.


As the fourth-largest automaker in the world, ¡¥Toyota is committed to continuous improvement, looking forward to new tomorrows. Built-in car navigation system is getting more...