Supply Chain Security. Tools, Trends, and Techniques : Toyota and Honda cases

Abstract:   Supply chain management has experienced great changes within the last fifty years. Inevitably, many companies entered the global market with the prime intention to achieve their defined goals. In comparison with the local markets, the global environment requires more efforts and changes in the supply chain operation in order to remain viable in business. Several business models are introduced for achieving the success in the market, suggested by the following researchers: Liker, Choi, Ronald Gilson, andMark J. Roeand others.  In a row with the study cases of Honda and Toyota Companies, the Supply Chain Trading Security is presented. Within this paper the security approaches are discussed during the processes of market penetration and development globally. The main strengths and weaknesses of the models are highlighted in the thesis. The description of market situations and explanation of the models’ application is presented. In order to achieve better results in the analysis of the case studies, the qualitative and inductive research methods have been implemented. The secondary data is considered to be the cornerstone of the thesis. Due to the fact that the thesis is based on descriptive, partially explanatory, and qualitative research methods, different meanings and experiences related to the Supply Chain Security phenomenon are discussed. In order to obtain the necessary data, library catalogues, encyclopedias, databases, and search engines in the Internet are utilized. The thesis goes through the following processes: choice of research area, formulation of research questions, choice of method, formulation of research design and data collection techniques, implementation of data collection, analysis of data, interpretation of data, and finally conclusions. The studied companies in the thesis – Toyota and Honda – conducted four major supply chain models that are neatly explained through the research. Partnership, Supplier Keiretsu, ARA, and Triple-A are the operated models. The following issues have been derived as conclusions: many components of supply chain security in terms of trade, affect the whole organization to a great extent. In order to keep the customer loyalty, image, and brand, companies should focus on their own core competence. Complex, transnational, and multi-vendor supply chain security models require more collaboration on safety issues that is approximately a half of the whole job. In addition, management and control of activities are necessary in order to achieve the target, go through the obstacles, and manage the current market situation.  Economic, political, and nature influence are key determinants of the supply network situation and give the possibility for a company to gain benefits, and control all business activities. The optimal choice of the model is considered to be the main tool aiming to manage all aforementioned tasks. Furthermore, diverse cultural differences influence the choice of the models that are implemented by the American and Japanese companies.