Toyota Recalls - Opportunity in disguise
Incorrect supplier collaboration - As in the case of Toyota a lapse in the coordination between the two parties can have serious repercussions. Their needs to be a seamless integration between the two to make sure that all relevant information ( be it parts design, forecasts or any other ) is transferred to the other party seamlessly and so also their must be adequate check points to create alerts in the event of any deviation from the set procedure.
Improper planning - Over the last decade we have seen a phenomenal growth for Toyota, and I feel that though the goal to achieve 15% of global auto industry was set correctly the execution has failed at multiple points. Among these failed points is the failure to anticipate growth with a back up of skilled resources leading to unskilled workforce and deteriorated quality being applied to the production. The crux of the problem here too I feel is the lack of proper Integration between various Enterprise functions. A proper sharing of forecasted growth with the right amount of planning between various functions like the manufacturing, HR and finance would have resulted in a better management and efficient tracking. This would definitely have resulted in proper hiring plans, better training and lower quality defects.
Though not to say that Toyota lacks in the systems but it definitely shows the opportunity that is available for leading IT service providers. Not to mention that if a company of this proportion has so such a humungous opportunity, then for the industry as a whole , the supply chain market has just started to open up. Clearly its not about having best systems working in isolation or processes that are benchmarks in the industry, it is about having a confluence of the two aided by real time transfer of all business relevant information to each stakeholder.
I am sure there would be a lot of thoughts and inputs on this opportunity at hand, do share them across to all.