Business Case
Toyota: 0 --> 1.2 M vehicle N.A. production in <7 years
No infrastructure in N.A. for service parts procurement/logistics.

Actions
Established North American Parts Logistics Division ('93)
Developed organization, systems, facilities, supply chain

Results

Before 87% 0% 5.2 30K lines/ 98% 96 hours

Metric Supplier on-time delivery Daily order/delivery S/C inventory months W/H labor productivity Service rate to dealers Average supply lead-time

After 95% (Industry: <70%) 70% (Industry: <20%) <2.4 (Industry: 6 mo) 46K lines/employee/yr(30K) 98% (Industry: 94-97%) 14 hrs (Industry:20-96 hrs)

Summary
Benchmark supply chain creates competitive advantage