I’m pleased to report that after a weekend driving around in a Toyota Avalon, a model impacted by the recent acceleration recall, I’m alive and well. The same can’t necessarily be said about Toyota’s supply chain. According to a recent article in SupplierBusiness.com, “The global quality crisis now hammering Toyota has launched a debate about whether the blame should be placed squarely on the company’s renowned system of supplier relations.” The article considers the notion that perhaps “Toyota’s deeply integrated ties with its parts makers actually permitted the problems with the pedal modules to occur” by suggesting that “Toyota can no longer maintain sufficient support and quality control, especially as it adds new suppliers around the world … Yet it still governs the design of key components.” Moreover, “By relying so heavily on sole suppliers and using parts across multiple platforms and vehicles, the automaker increases its risks.”
Personally, I’m a firm believer in the Toyota way. Developing close supplier relationships for strategic parts and commodities is almost always a better long-term decision than simply hammering a supply base on price. But I do agree with the article’s point that aggressive part rationalization — not to mention buying primarily finished assemblies rather than individual piece parts — may have contributed to the problem…
