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Improving vehicle logistics: Toyota’s digital approach

How Toyota is leveraging digital solutions to streamline vehicle logistics and planning.
13/12/2024
At Toyota, we are embracing digitalisation to enhance vehicle logistics. By implementing innovative concepts, we are improving safety, quality, delivery & productivity, for our employees and our customer satisfaction.

Embracing digital challenges

At Toyota, we recognise that digitalisation in vehicle logistics presents unique challenges. Whether moving a clutch, or a car, the scale may differ, but the core challenges remain the same. Our motto, "On-Time, In-Time, Every-Time" underscores our commitment to timely delivery, with shortest lead times. Digitalisation is not merely about technology; it's about upskilling our workforce and ensuring we meet our customers' expectations consistently.
Read more (Opens in new window) Watch the interview with Jean-Christophe Deville (Opens in new window)

Project VELOS: enhancing network planning

One of our key initiatives, Project VELOS, focuses on improving network planning and visibility. By replacing historical average lead times with confirmed lead times from our logistics partners, we aim to enhance planning accuracy. We also prioritise vehicle deliveries, moving away from the traditional first-in-first-out logic. Accurate lead-time information is crucial for us to be more responsive to market demands and reduce inventory levels.
“Toyota's renowned just-in-time and build-to-order strategies are central to our approach. We strive to minimise inventory and avoid unnecessary stockpiling of vehicles. By matching production closely with customer demand, we ensure that we build cars specifically for our customers. This requires agility across production, inbound parts collection, and outbound vehicle distribution, helping us maintain low inventory levels and high efficiency,”
says Jean-Christophe Deville, VP Supply Chain at TME

Leveraging in-house excellence in Toyota mega hub

Toyota mega hub in Kolin, Czech Republic, exemplifies our commitment to high quality through Toyota Production System (TPS) and digital innovation. By insourcing complex vehicle accessory fitting, we leverage Toyota's expertise, while allowing our logistics partners to focus on transportation. Digital instructions guide our workers step-by-step, improving training and ensuring accuracy. This system enhances safety, quality, delivery, and productivity, reflecting our dedication to continuous improvement and Kaizen.