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,SCH4801 2025 ASSIGNMENT 3 2025 SCH4801 2025
QUESTION 1.1
Innovative and new technologies trends in supply chain management: From the
case study, it can be deduced that innovative technologies, information, and
communication are essential to Toyota. Evaluate two (2) new trends in
innovative technology applications that Toyota’s supply chain managers can
use to improve information sharing and communications in their supply chain.
Your evaluation must address the importance and application of these identified
innovative technologies and how Toyota’s supply chain can benefit from
implementing them. [6]
Introduction
Toyota South Africa, a prominent automobile manufacturer, operates a complex supply
chain that is vital to its operations, encompassing global and local sourcing, vehicle
assembly, storage, and distribution. The company's emphasis on high-quality
standards, long-term supplier relationships, and manufacturing philosophies like 'The
Toyota Production System' (TPS) underscores the critical role of efficient information
and communication within its supply chain. However, as highlighted by significant
disruptions such as component shortages in 2019 and severe flooding in 2022,
modern supply chains are inherently vulnerable, necessitating robust information
sharing and communication strategies. This report evaluates two new trends in
innovative technology applications – Blockchain Technology and the Internet of Things
(IoT) – that Toyota’s supply chain managers can implement to significantly improve
information flow and communication, ultimately enhancing the company's resilience
and competitiveness amidst future uncertainties.0717513144
Answers to the questions
1.1 Innovative and new technologies trends in supply chain management
Innovative technologies, information, and communication are fundamentally essential
to Toyota's operations, enabling the coordination of its vast network of global and local
suppliers and ensuring the delivery of high-quality vehicles (Bowersox, Closs, Cooper,
& Bowersox, 2020). The sheer complexity of its supply chain, which spans continents
and involves numerous processes, demands timely and accurate information flow to
prevent disruptions, align operations, and maintain a competitive edge. Two new
trends in innovative technology applications that Toyota's supply chain managers can
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leverage to improve information sharing and communications are Blockchain
Technology and the Internet of Things (IoT).
1. Blockchain Technology
Importance and Application: Blockchain technology establishes a decentralized,
immutable, and transparent ledger for recording transactions and information
across the supply chain. Its importance lies in fostering unparalleled trust and visibility
among all participants, as every piece of data, once recorded, cannot be altered,
ensuring integrity and authenticity (Badenhorst-Weiss, van Bijon, & Ambe, 2017). This
technology is particularly valuable in complex, multi-tiered supply chains like Toyota's,
where information may pass through numerous entities and geographies. Applied in a
supply chain context, blockchain can track products from their origin, verify
certifications, manage payments, and provide a single, shared source of truth for all
stakeholders.
Benefits for Toyota:
Enhanced Traceability and Quality Assurance
Toyota sources raw materials and high-quality components from global suppliers
across Japan, North America, Europe, Asia, and locally. Blockchain could provide a
secure and verifiable record of every component's journey, from its raw material
stage through various tiers of suppliers, right up to vehicle assembly. This would
enable Toyota to ensure that all parts, such as the rear seat assembly locks from
Keiper or exhaust components from Tenneco, consistently meet its rigorous quality
standards, including environmental compliance like ISO 14001 and adherence to
"Green Purchasing Guidelines" that specify substances to avoid. By having an
immutable record of compliance and origin, Toyota could more effectively mitigate
risks like those associated with past vehicle recalls in 2010 and 2014, which were
attributed in part to issues with supplier vetting and quality control for globally sourced
parts. This increased transparency would provide real-time insight into potential quality
deviations before they escalate.0717513144
Improved Trust and Collaboration with Suppliers
Toyota believes in fostering close, long-term supplier relationships. Blockchain can
deepen this collaborative environment by providing a transparent platform for
information exchange, replacing fragmented systems and reducing the need for