Section 2. Launch of New Management Systems

Item 2. Implementation of New Policies and Difficult Decisions

New SLIM Logistics System

In 2009, the global automobile industry experienced turmoil, including the start of a phase of restructuring under legal procedures by General Motors and Chrysler Corporation in the United States. TMC established a new management lineup in June of that year and began implementing various policies intended to lead to medium-and-long-term growth by returning to the company's origins while dealing with the pressing issue of restoring profitability.

At Guangzhou Toyota Motor Co., Ltd. (GTMC), a joint venture company established in China with Guangzhou Automobile Group Co., Ltd., the Sales Logistics Integrated Management (SLIM) system, a new logistics system that uses advanced information technology to manage all phases of operations from production and logistics to sales and after-sales service went into full-scale operation that June. The SLIM system is an advancement of the e-CRB sales management system that was introduced at sales companies in Thailand in 2003 and supported accurate understanding on GTMC computer monitors of the status of all vehicles in each process from production to after-sales service.

Identifying the status of each vehicle in each process at any given moment not only eliminates unnecessary delays, it also supports lean and efficient logistics that reflect at high-frequency in-store inventories and sales information in production plans and plans for vehicle distribution to dealers. In addition, dealers can use special-purpose terminals to monitor stagnant inventory that has been at the dealer for more than a certain period and post-delivery vehicle service times, supporting optimal inventory management and service management. Plans include deploying the system in emerging markets in stages, following assessment of SLIM used at GTMC.

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