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Supplying Toyota

Supplying Toyota

Publication Date: 30/08/2017

Access an OEM’s purchasing strategy, production forecasts, global footprint, supplier relations experiences, and SWOT (strength, weakness, opportunity, and threat) analysis

OEMs’ sourcing, investment, and production strategies are molded by a complex mix of interdependent factors, ranging from the outlook of local demand, trade tariffs, and supply base availability to OEMs’ technological and platform strategies. As the supply base becomes increasingly global, new opportunities are emerging for OEMs to optimize their sourcing cost structure by tapping suppliers in cost-competitive countries. In addition, the deployment of new modular vehicle platforms creates significant economies of scale for OEMs. This affects current sourcing structures, raising the risks for suppliers to win big or lose big, and even threatens the very existence of some component manufacturers.

IHS Automotive’s OEM Strategy Service provides insight, context, data, and analytics on OEM sourcing and production strategies and analysis of local supply base development in various regions and countries.

OEM strategists and planners use the service to:

  • Benchmark their sourcing strategies
  • Understand their sourcing potential in emerging countrie

Supplier strategists and planners use the service to:

  • Monitor the sourcing and platform outlook of their current customers
  • Decipher key sourcing patterns and strategies of new ones

About this report

Toyota, both as a brand and as a vehicle manufacturer, has proven remarkably resilient. At the end of the fiscal year in March 2013, the company once again was acknowledged to be the world’s largest carmaker. With the formation of these four new business units, the company will look to improve the speed of decision making in order to take advantage of regional opportunities, while also clarifying operations and earnings responsibilities. Although this is a considerable change for a Japanese company that until recently, insisted on having a Japanese national executive present at most global operations, it will likely prove highly beneficial to a company that has simply outgrown the support structure offered from within its home nation.

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