SCH4801
Assignment 3
Unique No: 796017
DUE: 10 October 2025
,SECTION A: QUESTIONS 28 MARKS
Report: Innovative Technologies, Road Freight, and Environmental Management
in Toyota South Africa’s Supply Chain
Introduction
Toyota South Africa faces significant supply chain challenges, including component
shortages, flooding, and increasing environmental pressures. The company relies on a
complex global and local supplier network to sustain the Toyota Production System
(TPS), which emphasises efficiency and waste reduction. To maintain competitiveness,
Toyota must embrace innovative technologies, negotiate effectively with logistics
providers, and implement environmental management systems. This report discusses
these issues by addressing three key aspects: innovative technology trends, road
freight negotiations, and the Environmental Management System (EMS) cycle.
1.1 Innovative and New Technology Trends in Supply Chain Management
Supply chain management has increasingly become dependent on digital technologies
that enable faster, more accurate, and transparent flows of information between
stakeholders. For Toyota South Africa, whose supply chain is global and vulnerable to
disruptions such as strikes, flooding, and climate-related challenges, adopting
innovative technologies is vital for resilience and competitiveness. Two notable
technology trends that can enhance information sharing and communication are:
, (a) Artificial Intelligence (AI) and Predictive Analytics
AI-driven systems allow supply chain managers to analyse large volumes of real-time
data from suppliers, logistics providers, and market demand patterns. Predictive
analytics goes further by using this data to forecast potential disruptions, such as
supplier shortages, transport bottlenecks, or climate risks.
• Application to Toyota: In the case study, Toyota faced a severe shortage of
critical parts due to over-reliance on Auto Parts South Africa (ASA) in 2019. By
applying predictive analytics, Toyota could have anticipated risks of labour unrest
by monitoring workforce data, supplier performance, and early warning signals
from industry reports. AI tools could also integrate external data, such as weather
forecasts, to flag risks of flooding in KwaZulu-Natal in 2022.
• Benefits:
o Improved supplier risk monitoring and decision-making.
o Faster response to disruptions through scenario planning.
o Reduced inventory losses by aligning production closely to demand while
safeguarding against shocks.
This technology directly supports the Toyota Production System (TPS) by ensuring that
“just-in-time” production is sustained without exposing the firm to severe shortages.
(b) Blockchain-Enabled Supply Chain Platforms
Blockchain technology offers a secure and transparent digital ledger that records all
transactions across the supply chain. Once data is entered (such as supplier
certifications, transport updates, or customs clearances), it cannot be altered, ensuring
accountability and trust among stakeholders.
• Application to Toyota: The case study highlighted Toyota’s emphasis on
sustainability through ISO 14001 compliance and its “Green Purchasing
Guidelines.” Blockchain can store verified environmental compliance records of
suppliers globally, allowing Toyota to instantly confirm that raw materials and
Assignment 3
Unique No: 796017
DUE: 10 October 2025
,SECTION A: QUESTIONS 28 MARKS
Report: Innovative Technologies, Road Freight, and Environmental Management
in Toyota South Africa’s Supply Chain
Introduction
Toyota South Africa faces significant supply chain challenges, including component
shortages, flooding, and increasing environmental pressures. The company relies on a
complex global and local supplier network to sustain the Toyota Production System
(TPS), which emphasises efficiency and waste reduction. To maintain competitiveness,
Toyota must embrace innovative technologies, negotiate effectively with logistics
providers, and implement environmental management systems. This report discusses
these issues by addressing three key aspects: innovative technology trends, road
freight negotiations, and the Environmental Management System (EMS) cycle.
1.1 Innovative and New Technology Trends in Supply Chain Management
Supply chain management has increasingly become dependent on digital technologies
that enable faster, more accurate, and transparent flows of information between
stakeholders. For Toyota South Africa, whose supply chain is global and vulnerable to
disruptions such as strikes, flooding, and climate-related challenges, adopting
innovative technologies is vital for resilience and competitiveness. Two notable
technology trends that can enhance information sharing and communication are:
, (a) Artificial Intelligence (AI) and Predictive Analytics
AI-driven systems allow supply chain managers to analyse large volumes of real-time
data from suppliers, logistics providers, and market demand patterns. Predictive
analytics goes further by using this data to forecast potential disruptions, such as
supplier shortages, transport bottlenecks, or climate risks.
• Application to Toyota: In the case study, Toyota faced a severe shortage of
critical parts due to over-reliance on Auto Parts South Africa (ASA) in 2019. By
applying predictive analytics, Toyota could have anticipated risks of labour unrest
by monitoring workforce data, supplier performance, and early warning signals
from industry reports. AI tools could also integrate external data, such as weather
forecasts, to flag risks of flooding in KwaZulu-Natal in 2022.
• Benefits:
o Improved supplier risk monitoring and decision-making.
o Faster response to disruptions through scenario planning.
o Reduced inventory losses by aligning production closely to demand while
safeguarding against shocks.
This technology directly supports the Toyota Production System (TPS) by ensuring that
“just-in-time” production is sustained without exposing the firm to severe shortages.
(b) Blockchain-Enabled Supply Chain Platforms
Blockchain technology offers a secure and transparent digital ledger that records all
transactions across the supply chain. Once data is entered (such as supplier
certifications, transport updates, or customs clearances), it cannot be altered, ensuring
accountability and trust among stakeholders.
• Application to Toyota: The case study highlighted Toyota’s emphasis on
sustainability through ISO 14001 compliance and its “Green Purchasing
Guidelines.” Blockchain can store verified environmental compliance records of
suppliers globally, allowing Toyota to instantly confirm that raw materials and
